What Records Should You Keep About Precious Metal Investments You Have Made?
April 15th coming up soon and it is time to start thinking about taxes.
By the way, the deadline for filing our federal taxes in 2021 is April 15th. You might remember that in 2020, the filing deadline was extended until July 15th, because of Covid-19. But this year the filing deadline is again April 15th unless (of course) you file for an extension.
What Records Should You Keep Regarding Your Investments in Precious Metals?
If you’re like most people, you probably only keep records of what you paid for the precious metals you have acquired and the prices that you sold them for. In other words, you are tracking your profits because you intend to pay tax on them.
However, we would encourage you to set up a spreadsheet on your computer or use another system for tracking statistics that go beyond simple profits and losses.
Here are additional statistics that are smart to keep, and why.
Keep Detailed Descriptions of Precious Metal Scrap and other Precious Metal Investments You Have Bought and Sold
If you bought 10 pounds of used sputtering targets and had us extract the gold they contained, for example, keep notes on that. Or if you had us recycle the silver that was contained in an odd lot of tableware, write that down too. Why? Because detailed records on your past profits will help you evaluate the potential profits of investments that are available to you in the future.
Don’t rely on your memory to keep track of all the details. There is just too much to remember.
Record Contact and Other Information for Your Sellers and Buyers
The idea is to incorporate comprehensive information in your records of the investments you have made. For example, you can enter the fact that you bought a 14K gold ring from a dealer with a booth in a local antiques mall; and you can record his contact information there too. This information, ready-to-hand, makes it easy to be in touch with those professional contacts as the need arises in the future.
Track Trading Prices
Rather than just recording that you bought, say, $500 worth of gold bullion and sold it for $600, also keep track of the trading prices that were in effect at the time of your purchase and sale. Why? Because as is the case with keeping detailed descriptions of your investments, knowing trading prices can help you differentiate between an investment that offers a higher return and others.
Record Fees You Paid for Investment Expenses
At Specialty Metals Smelters and Refiners, we are happy to spell out any and all expenses you can expect to pay for shipping your precious metal items to us, as well as other expenses. If you deal with other precious metal buyers, refineries, or other entities, it will be helpful if you can immediately compare the costs of doing business with them.
And Include Photos Too
Embed into your spreadsheet (or other record) a JPEG photo of each investment you have made. Having photos organized in this way will help you compare new possible investments against those you have made in the past.
After only a few years of investing in precious metals, you will find that you have invested in a variety of gold, silver, and platinum scrap – sterling silver tableware, karat gold religious medals, coins, you name it. It’s easy to forget just what you have invested in, and how much money you made. But a few snapshots that you insert into your records can help you remember everything – and repeat the kinds of investments that proved to be the most profitable in the past.
Want to Know More?
Be sure to call our precious metal consultants at 800-426-2344 to discuss the precious metal investments that should be on your radar for the coming year.