Issues with selling large quantities of bullion

Hi all,

Im curious to know if anyone has experience with selling large quantities of bullion for cash. When i say large quantities im talking about for example $50,000+...an amount that you would take to the bank for example and want to use as a deposit on a house which may get questioned.

As alot of us here buy and trade between eachother, we do not keep reciepts etc as proof of purchase if this money was questioned.

Has anyone got experience with this? thanks.

 

Keep a secret ledger. Start one now. Go back over all your transactions that come to mind. Find the cash withdrawal in your bank accounts to cross reference,

 

Yeah i mean i kind of do personally though alot of the stuff i buy will be cash.. Well the bigger items in particular i settle in cash as i prefer a f2f.

Would be interesting to know if anyone has experience with trying to deposit a large amount to the bank before.

 

If you're talking about putting down PMs as a deposit for a house, no Australian bank, public or private will do it. I've tried. However, the Westpac teller I spoke to was of Indian descent and she said that banks in India do this for gold, and that Westpac have branches in India. So potentially, you may be able to get a loan in India using PMs to buy a house in Australia. No idea how it works though, or who holds the PMs.

If you are talking about depositing in a safe deposit box, the bank never questions what is in the box.

In terms of selling, as long as there are bank records of all the purchases that can be accountable, AUSTRAC wont be on your arse. As long as you follow the capital gains laws and declare anything liable then ATO won't be on your arse either. Banks will not question the origin of money, it's just not their job.

 

Hi BiGs,

Yeah ive looked into that before using gold/silver as collateral to a major bank - impossible.

As alot of us pick up PMs as we go im assuming we don't track all records - i definitely don't.


I guess the basic question is if i walked into a bank with $50k and deposited it into my account what would happen?

 

I wouldn't expect people to put their hands up for that question if they have done it would you?

 

Cash gift from parents/family to help with a house deposit, they wouldn't question it if you offered a reason right off the bat.

...or you found a sunken boat

 

Napth - Im not sure what you mean ? U have 71+ trades im assuming u probably own a decent amount of bullion without having to give dollar numbers.

Thanks Baron.

I've thought about that before though dont really want to drag other people into it... Its not about avoiding taxes its about loggin every transactions etc especially on a website like this, ebay etc

 

I know of a $200,000.00 cash withdrawal in $100's and nothing came of that.

 

do you mean deposit not withdrawal from the bank?

Hi Golden, im not looking at selling right now though as a plan for when i do i don't want the hassle of dealing with taxes, receipts etc. when you say under the radar how would that work exactly?

 

I'm assuming the plan behind the original question is to sell his stack for a big wad of cash. Before this cash can be used as a home loan deposit he needs it in his bank account - concerned about looking like proceeds of crime and getting thoroughly investigated.

 

Rinchin your too smart...

Basically yeah, doesnt seem like anyone has had an experience off loading a large sum of bullion ( or is quiet ). Im not personally talking illegally, for example if someone bought 50k of gold 2 years ago and is behind but never has receipts etc and just wants to sell at a loss how would you go about this.

Thanks Golden will keep that in mind.

 

haha nope im not the example, just curious if people have experience with cashing in their bullion then when depositing at the bank being questioned.

Thanks tho!

 

Bank staff are required by law to question you if your of deposits and/or withdrawals deviate from your usual pattern.

If you run a business and regularly deposit $50,000 in cash every Friday, nobody will question you if you deposit $50,000 in cash on a Friday.

If you're Joe Bloggs and get your $1000 salary transferred to your account and use your Mastercard at Coles every week and then one day you rock up with $50,000 in cash to deposit, they will question you about where you got it from.

 

Banks are only required to lodge the deposit under your name for gov departments to be able to look over at a later time. (I once exchanged $1400 in 20's for 100's and since I just walked off the street I had to sign an anti money laundering form and show ID. Anything over $1000 now) It would be best to declare it with your next tax return, to stop any suspicion. Talk to an accountant, there are ways to do it still without proof of purchase.

If the money origin is not dirty, you don't have anything to worry about. AUSTRAC knows more about your finances then you do. They are a pretty cluey bunch, aye. As long as you have the withdrawal history, no prob. $50k is chump change to them anyway, don't worry about it.

 

You walk into a bullion dealer and purchase 10 kg of silver. Then 6 weeks later, you return and sell same amount for a value of twice what you paid. Is there any tax liability ?

 

Hey guys, let me just say one very important thing. Any transaction involving a bank may fly under the radar now, but all this data is being stored and with each passing year, as technology advances, as the price of computing becomes cheaper, and as data from disparate sources is consolidated, it becomes more and more feasible to run and rerun data analytics (data mining) over the old data.

Seriously, keep this in mind. It is being done now.