Many of our clients are concerned about privacy. And quite a few own private assets like gold. So the question, “Can you sell gold anonymously?” comes up from time to time.
In this article, we’re going to talk about what that means and the best way to do it.
Is It Possible to Sell Gold Anonymously?
In theory, yes. Selling gold anonymously is possible. But is it a good idea? That’s a harder question.
First, we need to be clear about what “anonymously” actually means.
When clients come to us to build a wealth protection plan, they want things to be as private as possible. They would love for their financial affairs to be 100% anonymous.
That means keeping things private from other people. And private from the tax man too.
When we say it’s possible to keep things anonymous, we are talking about legal ways to keep the transaction private from other people.
But, if you made a capital gain on your gold, you cannot legally hide that profit from the IRS. That’s tax evasion and there’s no possible scenario where that’s a good idea.
The one exception would be if your IRA or 401(k) plan owns a gold coin or bar that’s approved by the Tax Code for ownership by a retirement plan and then sells it. But even then, you wouldn’t be able to sell the gold anonymously.
Instead, you would need to ask your IRA custodian or 401(k) administrator to sell it. While the IRS wouldn’t know about the sale, it wouldn’t be anonymous.
Gold IRA vs Physical Gold
Both a Gold IRA and physical gold involve owning physical metals. However, there are notable differences between the two: Each option has specific advantages and limitations. Here’s what you need to know before you decide: Gold IRA vs Physical Gold.
Why Do People Try to Avoid Having a Record?
Yes, some people may be trying to evade taxes. But not most. At least so far as our clients are concerned, they simply want to keep details of their assets as private as possible. That’s all.
Taxes and Reporting Requirements
To learn more about how gold is taxed, and the one case where you can book a profit without a tax bill, please see: How to Sell Gold Without Paying Taxes.
How to Sell Your Gold Anonymously
With the above in mind, if you’re looking to keep your privacy over the transaction, your best bet is to head first to a local coin shop or pawn shop. They may be willing to pay you in cash or, in some cases, crypto.
Every state in the country periodically hosts coin shows. If you attend one, you’ll be able to get offers from multiple dealers for your gold. In most cases, cash sales are possible or even preferred.
However, if you sell more than $10,000 worth of metals, and the dealer pays you out in cash, he must legally file Form 8300 with the Treasury Department. It will record details of the transaction, including your identity.
You could also try putting an ad out on services like Craigslist or online forums and try to find a private buyer.
However, that can be quite risky. You open yourself up to theft, especially if you agree to meet the buyer at your home.
Here’s a Better Way
As mentioned above, it’s never a good idea to try and hide money from the government. But you can keep the details of your transactions anonymous from other people.
The best way to do that is through the use of structures — in particular LLCs and trusts.
You can build an entire wealth protection plan around structures completely disconnected from your name.
How you go about doing that will be different from state to state, as the laws around such structures as different from state to state.
Another option is to move your assets overseas. If you do it right, no one other than you, your accountant, your lawyer, and the Treasury Department will ever need to know.
If you’d like to learn more about how we could help you bring a dose of privacy back to your financial dealings — whether with gold or without — feel free to book a free, no-obligation call with one of our Associates to see if a wealth protection plan is right for you.
We’ve helped more than 15,000 customers and clients build one since 1984. Perhaps we can do the same for you.
