FAQ’s

The short answer is NO, RPMAG does not disclose your transactions to the government or anyone else. There are extremely rare circumstances where certain reports could be required, but a reporting obligation is only triggered about once in every ten thousand transactions – and make every effort to notify customers in advance. Please visit our Non-Disclosure Policy page for more information.

• The fact is many coin dealers prefer to steer people into rare (i.e. numismatic) coins because they carry much higher profit margins for the dealers than do bullion coins. The numismatic market is far less liquid, there is usually a gigantic gap between the buy and sell price, condition is a huge factor in the price, and other considerations make it hard for even a knowledgeable person to be a savvy buyer. Liquidity may be especially limited for little-known, unusual, or exotic coins. Unless the dealer has an immediate need for the coin you purchased, he may be reluctant to repurchase it from you at all. At that point, you would be on your own to track down another buyer. On the other hand, gold and silver bullion coins, bars, and rounds are highly liquid, easily traded, and priced on a global market around the clock. At any given time, you know what the spot price of gold and silver is, and this is the primary basis for the price of any bullion product (which usually includes only a small premium over the spot price). RPMAG’ has always maintained that it’s best to start out with low-premium bullion products. They’re the least risky, least subjective, most cost-effective, and most direct way to invest in precious metals.


• Meanwhile, you may have heard the argument that you should buy numismatic coins because they would supposedly be exempted from a future confiscation – as collectible gold coins were in 1933. However, we don’t give the retail bullion confiscation argument much credence for a variety of reasons that the RPMAG’s newsletter (coming soon) will address, and we would certainly not rely on it as the sole basis to enter into the highly speculative collectibles market.


• There are risks in everything, but the risk in buying numismatics from local dealers, at coin shows, or over the Internet on free-wheeling marketplaces such as eBay at “bargain” prices is that you could get sold a coin that has been tampered with or whose grade certification has been forged to make it appear more valuable than it actually is. There is also a risk of counterfeit coins – even if made of actual gold or silver – because the price of the authentic item is often many multiples of the metal value.


• Speculating on numismatic coins is somewhat akin to speculating on artwork. Sure, you can make money buying and selling artwork, but it’s a specialized field, and if you are thinking of putting serious money into it, you had better make sure you know what you are doing.


• All that said, it can be great recreation to dabble in collecting rare coins, particularly if you appreciate the beauty, symbolism, and history of these items.

• The proof coins will continue to command a premium over regular silver Eagles. But whether that premium on proof coins increases in proportion to rising silver prices is another question entirely. It may, but more likely it will not.


• Some people do have a special affinity for the brilliant luster and high contrast of the proof finish, but over time we suspect this interest will not grow proportionally to those who want lower-cost precious metals. Only you can decide how much you value aesthetic or historic / collectible qualities in coins. But as leading silver expert David Morgan teaches, the surest way to invest in silver is to buy the “most ounces” you can get for your money.


• So if you’re just looking to protect your wealth in silver and cash in on rising prices, then don’t pay the large premium charged for proof coins. Instead, use your savings to buy additional ounces of low-premium silver.


• If silver prices triple from here, will the premiums on proof coins more than triple, as would be needed to outperform mere bullion? We doubt it. Premiums as a percentage of the total coin value tend to fall in a precious metals bull market.


• Our General Thought is: Take note of the “bid/ask” spread. This is the difference between your cost to purchase versus your price to sell today. For proof coins and other numismatics you will find this spread can often be 30%, 40%, or more. Compare that to bullion coins, rounds, or bars, which will generally offer bid/ask spreads of less than 10%.

• The particular dollar amount at which you choose to trade out of your silver isn’t necessarily important. If you think of silver as a currency, then what matters is what goods, services, and other assets are going to cost in terms of ounces of silver.


• We suspect that in the near future (sooner than most can conceive), silver will become much more valuable not only in terms of depreciating dollars, but also versus foreign currencies, stocks, bonds, houses, and most other assets. In other words, silver’s real purchasing power will increase across the board, giving you the ability to convert your silver into any of a number of assets – not just dollars – that will be incredibly cheap in terms of ounces of silver.


• Silver is and has been money for 5000 plus years. When the time comes to exchange some of your silver, you should easily be able to swap it for paper currency. In the event folks are reluctant or unwilling to accept paper currency, precious metals (especially gold and silver) will almost certainly take on a leading role as a medium of exchange.

• Premiums vary according to the product in question (Example: American Eagles will always carry a slightly higher premium than other world minted sovereign coins or common rounds, which is also based on (the then) market conditions. When demand is soft, premiums typically fall, normally on secondary market products such as pre1965 U.S. silver coins.


• Secondary market products [minted at private mints] – items that are being resold rather than sold for the first time as brand new – can often be purchased at a discount to newly minted products and closer to actual spot prices vs. any sovereign coin minted, which in the past was not always that way.

• Not usually. The only real factor that matters is the “melt value” of the gold or silver product in question. For instance, while not all of the popular one-ounce gold bullion coins have the same purity, they do all contain one full troy ounce of gold.


• The most popular retail silver bullion product where this purity question comes into play is with “junk silver” – aka 90% or 40% U.S. silver coins. When buying junk silver, you effectively get the copper filler for free. You pay only for the silver content. When it comes to Pre-1965 90% silver dimes, quarters, and half dollars there is 0.715 ounces of silver for every $1 of face value (i.e. 10 dimes, 4 quarters or 2 half dollars or any combination thereof that adds up to exactly $1).


• There are some situations where purity does matter and must be considered. For example, when purchasing bullion specifically for a precious metals IRA, the IRS requires that products (other than American Gold Eagles) meet a certain purity standard.

• All markets are susceptible to manipulation by large institutional traders, central banks, and governments. Precious metals markets are no exception. In fact, Deutsche Bank, HSBC and ScotiaBank, Merrill Lynch, and JP Morgan Chase (recently) have all been hit with criminal and/or civil charges for rigging gold and silver markets. Since 2015, big banks have paid penalties totaling over $10 billion to settle charges of market manipulation.


• Government directed/sanctioned manipulation is more insidious and tougher to combat. The U.S. government’s Exchange Stabilization Fund and Working Group on Financial Markets (i.e., “Plunge Protection Team”) intervene in markets when they veer off course. Evidence suggests central planners ‘suppress’ gold prices through a variety of mechanisms, such as engaging in secret “swaps” with other central banks.

• We recommend a two-pronged approach. First, store some of your bullion at home in a well-concealed safe for immediate access in case of emergency. Store the remainder of your bullion in a secure, insured precious metals storage facility. Insist on segregated storage like that provided at RPMAG to avoid any commingling of your bullion with that held by other customers.
• Safe-deposit boxes at banks are generally not suitable for precious metals storage. In fact, some banks have policies that explicitly prohibit gold bullion. Plus, your gold would be at risk in the event the bank goes under or gets raided by government agents (which has happened recently). You don’t want your gold tied into the banking system, even indirectly.

• This is an odd question that nobody ever asks, just like “What can I do with stocks, bonds, or bank deposits?”


• Fortunately, though, physical precious metals offer far more versatility than conventional paper assets in terms of what you can do with them. Basically, all you can do with a stock or bond is sell it for cash, donate it, or in some cases borrow against it.


• You can do all those things with bullion – and much more. Since precious metals exist outside of the financial system, they can serve many non-financial purposes.


• Unlike digital entries in a bank or brokerage firm, gold and silver coins are beautiful! They are meant to be appreciated for their aesthetic qualities, which confer a pride in ownership and a special sentimental value when given as gifts.


• Silver has myriad uses in high-tech, industrial, and medical applications. Silver has germicidal properties and can be used to purify water, preserve milk, or treat wounds. (Don’t try any of that with your stocks or bonds!)


• Your coins could theoretically be melted down and repurposed in any number of ways. More likely, though, you will hang onto them until you are ready to sell and/ or barter with them. Since gold and silver have near universally recognized value, they can be used as money around the world (just like the last 5000 yrs) in transactions with any willing party.

• Not necessarily. Gold is a counter-cyclical asset. It shows virtually no correlation with the stock market (and other conventional assets), meaning it can go up when stocks fall – especially if investors in large numbers seek gold as a safe haven.
• During an extreme credit crunch such as occurred in 2008, gold may temporarily sell off during forced liquidation sprees. But despite suffering some downside volatility in late 2008, gold actually ended the year in positive territory.
• The Important thing to know about gold and silver, is that this is a “Safe Haven” and Store of Wealth that never loses all of its value; as it has proven for the past 5000 yrs.

• Tax treatment is the same for all bullion coins, rounds, and bars.


• The IRS mis-categorizes gold, silver, platinum, and palladium bullion in the “collectibles” category, despite the fact that most such items carry no collectible premiums. It’s confusing (and unfair), but that is the way it is until the U.S. Treasury changes its regulations or Rep. Alex Mooney (R-WV) passes his Monetary Metals Tax Neutrality Act (H.R. 1089) which would end ALL income taxation on precious metals.


• As of the current time, bullion sold after holding one year or longer is taxed federally at the 28% rate for “collectibles.” Bullion held less than one year is taxed at personal income tax rates, just like short-term capital gains taxes on stocks or bonds.


• That said, investors are never taxed simply because their metal holding appreciates in value. This capital gains tax applies when the metal is sold, and the investor realizes a gain or a loss in terms of fiat dollars.


• In some cases, RPMAG are forced to assess sales taxes on behalf of those states that impose taxes on precious metals purchases (which allot of states have been removing this tax of late).

• A dealer has “no obligation” to tell the IRS about a customer’s purchase or sale except in extremely rare situations. The primary exceptions are purchases using more than $10,000 in actual cash and sales of very large gold, silver, platinum, and palladium bars.


• In the overwhelming majority of transactions, dealers are NOT required to file any kind of report or 1099 form. Furthermore, RPMAG is absolutely committed to protecting our customers’ privacy All that said, you have an obligation to report capital gains or losses realized upon a sale as measured in Federal Reserve notes (which is your business to report to the IRA, not ours).

• Yes, both historically and constitutionally, silver is money. Silver has been used as money since ancient times. It has been functioning as money far longer than any fiat currency has lasted.


• The U.S. Constitution, under Article 1, Section 10, instructs states to make payment in nothing but gold and silver coin and authorizes the federal government to coin gold and silver as money. The Coinage Act of 1792 defined a dollar in terms of silver. Specifically, a dollar was to be 371.25 grains (equivalent to about three-fourths of an ounce) of silver, in harmony with the Spanish milled dollar. Thus, the true foundation for U.S. circulating currency was not gold, but silver.

• We recommend a two-pronged approach. First, store some of your bullion at home in a well-concealed safe for immediate access in case of emergency. ** We believe that if you don’t hold it, you don’t really own it.


• But, if you don’t want to store your own bullion, then store the remainder of your bullion in a secure, insured precious metals storage facility. Insist on segregated storage like that provided at RPMAG’s Depository to avoid any co-mingling of your bullion with that held by other customers.