I bought a small amount of gold and silver from a local coin dealer today. I paid by money order and thinking that the transaction was under (well under) 10,000 I wouldn't need to give any identification, that I could remain annonymous. But they required a drivers license and took my SS #. I was told that this was incase there was more than 10,000 bought in a 12 month period by cash, since my money order was the same as cash. Call me parinoid, but I'm not thrilled at the idea of big brother knowing about my little stash. I didn't have the nerve at that point to ask if this was for their own records or if they repot this to a gov. agency. Is this really required? Any way to buy without giving that info?

-- A little scared to give real anem (call me@ paranoid.com), March 11, 1999

Answers

Hi! I bought and eventually sold about 40 oz of gold in gold coins, not all at one time, several years ago. I remember lots of paperwork. It seemed to me at the time that the paperwork was designed to discourage people from buying, more than being designed to to actually track people. Please remember, the government has no desire for you to turn in your paper money to buy gold. They can't prohibit the sale, but they can make it difficult and discouraging to try to deter you from the effort.

By the way, Gold is up to about $295 per oz today. This is the highest its been in several months. It seems to be on the rise...I track it every day. The amazing thing is none of the news services seem to think it has anything to do with Y2K, but I think it does. Sincerely, Apple

-- Apple (villarta@itsnet.com), March 11, 1999.

Dear scared,

if you are worried enough that the gov. and banking system will be so bad in Y2K remediations as to need to stash gold, do you really think they will be able to track YOU down personaly from your SS or driver licences numbers?

I bought my gold from a reputable gold dealer co., they asked for my SS# but assured me that it's for their internal affairs. True or not, I'm not worried about my little stash of gold this time around, Y2K is not going to be the same as the great depression.

-- Orange (notyet@fruitbasket.com), March 11, 1999.

Try purchasing from www.ajpm.com next time. All they want is a check, in the mail two minutes after you order by phone (slight exaggeration -- you have to mail it w/in 48 hours), but NO nosey or irrelevant questions asked, & the service is excellent.

I tried buying in person from a local dealer & got fleeced -- never again. That in-person stuff is for collectors only, not bullion buyers.

-- not (doing@that.again), March 11, 1999.

I bought some gold at a local dealer recently. I paid more than I would have from others via mailorder, but they didn't ask for id (I paid by cash).

However, they took a long time (20 min) to complete the transaction, and when I went outside and got into my car there was a man in white shirt and tie in a latemodel American sedan sitting nearby looking at me and talking into a cellphone. It occurred to me that they might have thought from my nervousness (from carrying cash) that I was a shady character and contacted the authorities. Probably just being paranoid...

-- asder ghnogh (asder@aurum.com), March 11, 1999.

Under Title 42 US Code, Section 408(a)(8), it spells out when you are REQUIRED to give your SS#. Check it out, as it is something handy to know. Read the related regs also. Many organizations, and government agencies "require" your SS# for an I.D., but have no authority to do so.

Mike

-- Mike (Mike@cola.sc), March 11, 1999.

If any gold dealer wants your S.S. #, license plate #, driver license #, fingerprints, blood sample from your first born male child, or any other (*&%)+#=%, don't do business with them. sheesh

Once more, 1-800-982-7070 if you want a good honest coin dealer, (or Gage Dillion or Blanchard or Franklin Saunders or Camino Coin) ask for Burt Blumert. Standard boilerplate I have no associations, contracts, commissions, et cetra with the above firm blah blah blah.

-- Ken Seger (kenseger@earthlink.net), March 11, 1999.

the 10,000 in one year is apropriate with the 10,000 cash reporting rule in place at banks. AND IT IS within ONE YEAR.

unstructured

-- unstructured withdrawls (structured@felony.prison), March 11, 1999.

Just to "sign in" - I purchased my gold coins last week from a local gold and jewelery dealer. He had told me before hand that he only takes cash, the price etc. Location: a large mall. I went in, told him how many, he got them (gave me the plastic Treasury holder for coins - American Eagle 1 oz.) No questions, SS or otherwise. All is OK at my house! Whew! Might do that again soon. . .

-- Faith (all OK@myhouse.com), March 11, 1999.

When you buy gold coins and say the price of gold goes to $800 up from the $295 that was posted earlier, do you reap the benefit of that increase if you want to sell it? Otherwise, when you invest in gold do you just buy paper gold? I'm confused but would like to know! Thanks!

-- Diane (DDEsq2002@juno.com), March 11, 1999.

I would never give my name or address for a metals purchase. They have NO jurisdiction asking for the SS#, and if pressed, I'd give a false one along with the false name and address.

Park your car a ways from the shop, and walk it. Why make it easy for thugs/govt goons? :)

-- Bill (billclo@hotmail.com), March 11, 1999.

Silver oz. coins used to be .75 - $1. over spot, now my local shop wants $2. over spot! I walked out choosing not to buy. Anyone have a reasonable dealer to buy from. I will try some of the earlier recomendations, do you know what premium they charge and shipping and handling costs?

-- Bill (y2khippo@yahoo.com), March 11, 1999.

Diane,

Yes , if you bought the gold coins at $295 and the price moves to $800, you would reap the difference if you sold the coins, minus the dealer premium, which would work in reverse in this case...he might offer you &790.

They are like any other commodity in that price reflects supply and demand, which can be affected by many things. Of course, if it gets really bad, you would use them for barter and the "value" in terms of goods that you could acquire with them would be set locally.

-- argh (argh@12milesawat.com), March 11, 1999.

Speaking of security in gold transactions: Pardon this query from one unschooled in geater economics, though I very much enjoy the informed and often opposing opinions expressed on this page. Could non-collector gold coins such as Krugerrands/Maple Leaves be subject to confiscation in a y2k crunch? I have read that this could happen if kept in a bank's safe deposit box and the owner tried to withdraw them. And if kept privately, could one be nabbed for "hoarding"? I have no illusions as to what officialdom would/would not be capable of.

-- Joyce Christian (seajoyce@aol.com), April 06, 1999.

wasn't clinton planning to sell government reserves of gold to help pay for third world debt or have I got this wrong

If so, sell to whom?

-- dick of the dale (rdale@coynet.com), April 06, 1999.

Joyce,

It's legal to own gold in the USA. The government will do whatever we let it get away with. If gold is declared illegal, I'd dutifully sell the underlying and buy the futures, for confiscation would be a signal that a massive, incipient devaluation of the dollar was at hand.

dick,

There is a proposal to sell IMF gold for third world debt relief. Your question is a good one. The gold would probably be purchased by the central banks and then lent out and shorted. This is most interesting because the IMF gold is actually pledges from the member central banks to begin with. So, in short, it's all a bogus shell game to clean non-performing loans from the banks' balance sheets and to further drive the price of gold lower. Then the banks can lend more money to the third world countries. Truly a "win-win-win" situation.

-- Nathan (nospam@all.com), April 06, 1999.