You may have purchased bullion coin investments in the 1970s and 1980s at prices substantially higher than today's levels. For instance, gold is now trading in the $400 per ounce range, less than half of its historic high of more than $800 per ounce. Silver is also trading much lower than its previous peaks. These low prices in tangible assets may not last for long.
Because stock "wash sale" rules do not apply to coins, Asset Strategies International has developed a program that enables you to take advantage of today's low prices to reduce your tax burden by taking losses on your coin investments to offset current ordinary income, or to shelter gains that you have realized on your other investments. Investors owning bullion coins that have declined in value can sell those coins to Asset Strategies International, thereby creating a deductible loss, and will have the option, but not the obligation, to buy the same coins back from Asset Strategies International, or can buy other, materially different coins or metals from Asset Strategies International.
Provided that the transaction meets the criteria set forth in the laws and regulations, any loss resulting from your sale or exchange can be deducted up to $3,000 of ordinary income, or can be deducted against capital gains on other investments, with the ability to carry unused losses forward to future years. This deduction will be available even if you exercise your option to repurchase the coins from them. Contact Asset Strategies International Inc., Suite 400A, 1700 Rockville Pike, Rockville MD 20852. You may also obtain information by completing their online inquiry form.
Asset Strategies International was founded in 1982 by two of the former senior officers of Deak-Perera, at the time the nation's oldest and largest precious metals and foreign exchange firm. The principals, Michael Checkan and Glen Kirsch have been in the precious metals/foreign exchange business for a combined total of 50 years. They are well known in the financial newsletter industry and at one time or another have been recognized as a "recommended vendor" by many of the writers in the newsletter industry.
Asset Strategies International helped the Government of Western Australia create the Perth Mint Certificate Program, an excellent way to purchase and store a variety of precious metals.
About the Author
Adam Starchild has been writing on taxes, personal finance, and investing for over 20 years. He is the author of over 20 books, including the Paladin Press book,
Portable Wealth: The Complete Guide to Precious Metals Investing.
Copyright © 1994, 1997 by Adam Starchild
The Investor's Library has reprinted this copyrighted article with the permission of the author.