Gyroscopic Investing

This thread forked from Placement of Cash thread where Sophie wrote,

Gold is good for taxable because it doesn't generate interest or dividends, but I'd only hold it in physical form. I've got most of mine at Texas Bullion Depository. Keep track of the depository's fees for when it comes time to sell. Or - this only just occurred to me, can you claim those fees as a capital loss every year?? Damn, didn't think of that before.

I (DS) asked,

I’m out of date. I thought you kept your gold at Perth Mint. But, I remember there were a couple concerns there.

Sophie wrote:I got out of Perth Mint. Too many red flags going up. The TBD is working out beautifully and I don't need to deal with FATCA. Cost is minimal and I get to buy gold bars instead of coins.

I had to shoehorn these note into Arthur’s post, because when I began moving posts, my thread-starting post here got knocked down to the bottom of the thread and I can’t move it back up. /DS/ And now, Arthur:

ArthurPooh wrote:

sophie wrote: ↑Sun Feb 25, 2024 6:14 pm I got out of Perth Mint. Too many red flags going up.

Could you please elaborate on this? Is this because of FATCA/other US tax problems or a more fundamental issue?

In addition to Arthur P’s question, I’m curious as to how the transfer went. You didn’t have to take possession first, did you? Do the Perth Mint & Texas Bullion work together to obviate that? (First world problems, yes. The best kind )

ArthurPooh wrote: ↑Sun Feb 25, 2024 6:21 pm

sophie wrote: ↑Sun Feb 25, 2024 6:14 pm I got out of Perth Mint. Too many red flags going up.

Could you please elaborate on this? Is this because of FATCA/other US tax problems or a more fundamental issue?

two issues. One was their stated policy on cyberattacks, which is that if a thief broke into your account and claimed part or all of it, the Mint would not make you whole even if the break-in was their fault. And their account security left a lot to be desired.

The other issue is a change in the political environment - I won't elaborate further, but it raised questions about possible safety of private holdings.

The process itself was simple: sold my holdings and transferred the money back to my account. Then I bought gold bars and had them send to texas bullion depository. That meant I had to pay some tax but it wasn't that awful. It turns out that the Mint will no longer allow international investors to take delivery of gold, because I would rather have converted my holding into bars instead of having to liquidate. That was yet another reason to get out actually.

sorry this really belongs in the gold forum.... (done)

Singapore and Switzerland might like to confiscate your gold but they dont need it.

Texas doesnt want to confiscate your gold but they might need it.

boglerdude wrote: ↑Sat Mar 02, 2024 4:22 am Singapore and Switzerland might like to confiscate your gold but they dont need it.

Texas doesnt want to confiscate your gold but they might need it.

I don’t think Texas runs the TBD. They provide oversight.
Maybe they own it. It’s not clear.

Well, wiki calls it “ the first state-administered depository to be established in the United States.”

https://en.wikipedia.org/wiki/Texas_Bullion_Depository

I saw someone complaing about TBD (Texas Bullion Depository) on reddit, and they mentioned a private competitor. I forget the name. Texas Precious Metals Depository?

Although, the wiki page for that latter outfit states, “ In 2016, Texas Precious Metals responded to Texas HB 483 with a proposed solution for the Texas Bullion Depository[9] but lost its bid to Lone Star Tangible Assets.[10]”

The Texas Bullion Depository is owned by the State of Texas and administered by the Office of the Comptroller. Lone Star Tangible Assets is a contractor that was awarded a contract for building and running the day to day operation of the facility.

https://www.texasbulliondepository.gov/