My dad told me recently that he just celebrated his “Heavy Metal” Birthday. He said it means that he has gold in his teeth, silver in his hair and lead in his butt. This is a good reminder article of another reality of investing in gold or precious metals. I’ve talked with a lot of people that don’t realize that when they go sell those gold coins that Grandpa and Grandma gave them several years ago, that they have to pay taxes on them. Not only that, but if they were a gift from grandparents, before they died, then you have to use their cost basis (i.e. what they paid for them) and have to pay 28% on the difference of what you sell them for…OUCH!! If purchases of precious metals figure into your future investment plans, evaluate the tax ramifications of buying them within qualified retirement plans such as IRAs and ROTH IRAs as versus non qualified (taxable) ownership. Your reason for owning precious metals as well as personal income tax situation will dictate the most efficient form of ownership. David Dick, CFP®

W. Devin Wolf, CFP®
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