Using your oz

Discussion in 'Wealth Creation & Management' started by Szag, May 21, 2014.

  1. Szag

    Szag Member Silver Stacker

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    Ok. Hypothetically SHTF but some financial structures stay stable. Enough that precious metals can be sold/traded anyway.
    So here we are, accumulating for years and suddenly PM's get to a fair enough value and property/commodities drop to fair value.
    The basic idea is that we sell PM's for currency and purchase with the proceeds. Ok. I understand the personal tax implications of that.
    So if one takes it to the next level, say getting a group of stackers together and pooling resources (oz), what would be the tax issues there?

    The proposition would be to pool equal oz initially and then when all contributors reach a consensus to sell, the trigger is pulled. Then it is spent according to the direction of that company.
    My questions are:

    Should there even BE a company? What are the implications of putting the PM's into company ownership both in terms of Tax/CGT etc? Is there a more efficient and better method to pool resources?
    My feeling was that it was prudent to create a company so that everything is done transparently for all members of the proposed agreement.
    WHEN would be the best time to start a company? With regards to a company, does CGT rate change if it holds it for a year as for an individual? Would it be prudent to set it up now?

    (I will of course do my own due diligence on any advice given but I would like some direction with this idea)

    Thanks for any input.
     
  2. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    I think you'll find the Stackeratti are individual players and would not want a bar of any shared venture.
     
  3. dagsgarrett

    dagsgarrett Member Silver Stacker

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  4. Szag

    Szag Member Silver Stacker

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    True. The pathway to stacking had always involved self teaching and a propensity to having an individual and oftentimes contrarian viewpoint. But it doesn't preclude an entrepreneurial spirit. If ones takes the argument that "every ounce counts" to a logical conclusion then pooling ounces is a good idea, right? More purchasing power etc etc. presuming of course it's not going to be a mad max scenario which I don't think it will be in Australia anyway.

    Still, I wouldn't mind some input from our local experts regarding those issues I mentioned.
     
  5. JulieW

    JulieW Well-Known Member Silver Stacker

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    It probably looked like socialism!
    ;)
     
  6. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    Socialism is okay until you run out of other peoples' money.

    However, pooling ounces is a quandary. If we each contributed 100 ounces, at today's prices, I'd through in 300 fifties. At $8 each that's $2,400. The next guy throws in 100 Buffaloes. The next guy has Dragons and wants to argue his costs were $50 each so only needs to contribute 50 ounces. Etc. etc. I doubt if 100 here would have 100 ounces of equal value to start a venture.
     
  7. Szag

    Szag Member Silver Stacker

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    Agreed. You'd have to specify the investment grade of the contribution. Eg 10oz Perth Mint bars only. It'd be up to the individual to obtain the agreed form of silver. This isn't really the hard part. I suppose in retrospect it isn't much more different than creating an investment firm. There's still all the tax and CGT to consider. That's the quandary. The rest of it is just running it like an investment company.
     

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