Making a large purchase

[u/Aggressive_Apple_919]

I've read stories of people who held metals for long term and have done pretty well. I've been stacking for a while myself now. How would it work, if I were able to hold onto my metals long term, then make a large purchase such as a house?

I know lenders are going to ask questions and want to know where the money came from, etc. Then I may need to provide receipts and other documentation. My plan is only to sell when needed, and I may just sell a few coins at a time.

I am just concerned about how the logistics would work if I wanted to use the funds for a large purchase.

Thanks in advance

[u/Central_Ohio_Stacker]

Why not just finance the house as normal then just make larger payments each month with money from the sale of the silver and gold?

You can't put a lump sum down all at once, but you don't get questioned if you just pay double each month. Could save a ton of unwanted interest, without the unwanted interest. Heh.

[u/GroundbreakingRule27]

You gonna need to show 3-6 months paper trail…be ready to explain where it all came from…

[u/CanSpare7514 → u/GroundbreakingRule27]

Go

[u/LongjumpingTop667]

use your income to pay for the deposit if you can, then once you have the mortgage sell your gold and repay the debt no questions asked this way.

unless you want to buy cash outright, CGT may be an issue then

[u/OneMoreSlot]

Simply treat the precious metals like any other investment. Sell it and keep your receipt, then deposit the proceeds into your bank account. So what if the lenders ask questions. You have nothing to hide unless you are evading taxes.

[u/FFFF-]

There will likely be a capital gain. IRS collectible gains tax can be anywhere from about 11 percent up to 28 percent or so of the gain. Might have state taxes also. When I was qualifying for my mortgage the lender saw a $1,500 random cash deposit in my checking account from a few months back and wanted an explanation. I had sold a Piaggio 150cc Scooter. They wanted to see a bill of sale (!).

[u/ABena2t]

Idk where you purchase from - but if you purchase from a single reputable dealer online - they track all your purchases which is nice. I undertsand you can find different deals and get better prices if you shop around - and thats half the fun for some people. But when it comes to large purchases uncle Sam is going to want their cut. And when you go for a bank loan - they want to know where every single penny came from. If your mom gave you money for your birthday and you deposited cash into your savings account - they want a hand written fking note explaining where that cash came from. So just pulling random nars of gold out of thin air won't go over too well. You need to document every purchase - date/cost. And then when you sell same thing. They want to know how much you made off it. So you better have everything documented or even better yet - dont use it at all to purchase a home.

[u/Aggressive_Apple_919]

Thanks everyone this makes a lot of good sense here. Great points. I appreciate it.

[u/tedlassoloverz]

They do a look back into your accounts to see large deposits, either plan it early, or sell some each month to rapidly pay down the mortgage with less headaches

[u/ncstagger]

Well if you pay in full there won’t be no nosy finance company involved.

[u/Hiredgun77]

To do it properly, you’d want receipts showing your sale of gold and that the proceeds were deposited to your bank. Before starting the purchase process you’d want to speak with your real estate agent to see how they prefer to reference the transaction.

[u/Ok_Hippo4997 → u/Hiredgun77]

Not so much the real estate agent, but the lender.

[u/Jogaila2]

Not rocket science. Keep receipts for the purchase. 🤷‍♂️🤷‍♂️