Warning to Precious Metal Dealers and Interested PM buyers

Beginning in 2012, I suggest you start buying your PMs in $599 increments.  The Obama administration slid another little surprise by us in their Health Care Law. The passage of the national health care legislation by Congress will have a big impact to the Nation’s coin collectors, silver and gold dealers, or anyone else who buys and sells coins, or silver and gold bullion.

Effective Jan. 1, 2012, the Internal Revenue Service will require that 1099 tax forms will be required for all transactions involving coins and PMs  that are bought or sold in excess of $600. The arbitrary $600 or more number (I believe that is the same number at which a casino’s IRS agent takes their share of your winnings, on the spot), is not a very high level and one that has already started sounding alarm bells. It doesn’t matter in what form payment is made; cash, check, credit card, or PayPal, the $600 threshold still applies.

IRS Form 1099 is used to report independent contractor income, income from dividends, and income from many other sources.  It is kind of a catch-all form to collect taxes on income received but not specified on other forms.


Section 9006 of the Patient Protection and Affordable Care Act (Public Law 111-148) that was signed into law by President Obama this spring, is where you will find the relevant part. Look under “SEC. 9006. EXPANSION OF INFORMATION REPORTING REQUIREMENTS. (a) IN GENERAL. – This is where Section 6041 of the Internal Revenue Code of 1986 is amended to require a 1099 issued for any transaction of coins and bullion in excess of $600.

The old exemption against corporations is also gone. If you buy or sell more than $600 of coins, or whatever, from, to or with a bullion dealer, for example, you have an obligation under the new law to issue 1099s.

On the hopeful side, there is a bill being introduced, H.R. 5141, by Rep. Dan Lungren , that has gathered over 80 members of Congress as co-sponsors to repeal this section of the Obama administration’s Universal Health Care farce . However, the drafters of the initial provision believe there is a $17 billion loophole that the requirement plugs.

Call or write a letter to your representative and urge everyone you know who invests in, purchases, sells, or collects silver or gold coins and bullion, expressing your outrage at this sneaky, underhanded tactic utilized by the Obama administration to pay for a Health Care Law that we did not want in the first place.  Hopefully dealers, collectors, investors, and the public at larges cry of outrage will lead to a ready modification before the law becomes operational in 2012. Potions of this article were taken fro NumisMaster.com and Numismatic News.

The Silverbug Round Will Begin Production Today

After numerous emails and phone calls between me and Jim Little, owner of Quality Silver Bullion we are ready to start production on the 2010 Silverbugs .999 Fine Silver round.  The obverse die cam in a few days ago, but needed to be treated and cleaned.  In the meantime, Jim and I looked at several possibilities for the reverse side.  I have to give Jim props for being very patient with me.  I did not want anything too plain, but I did not want a reverse imprint that detracted from the Silverbugs side. We finally settled on this:

Jim also sent me a photo of the unpolished Obverse (Silverbugs) side.  Remember this is unpolished so it will look much better before minting begins.

They go on sale tomorrow!  So If Jim does not have them up QSB's website, you can call the contact number and order!  This is a great day for Silverbugs, how many groups have their own .999 Fine Silver round?  So I encourage you to buy these, since Jim had the artwork touched up and die made and did not charge us a cent. Plus he had to put up with me for a month or so, and I was like a picky dowager in a shoe store.  I wanted to see every possible combination of obverse and reverse sides.

Also, you do not have to be a Silverbugs member, to purchase these rounds, but I think Silverbug members will get a discount on the premium!  So buy silver NOW!

BTW, look for our coin in one of Jim's YouTube productions soon.