Understand the difference between assessed value and market value and how they apply to your precious metals investment.
If you’re interested in investing in physical gold and silver, then you may have heard the terms “assessed value” and “retail or market value.”
You may be wondering how they differ and how they apply to your precious metals investment.
To make this all easier to understand, think of your precious metals purchase as if you were purchasing a home.
The assessed value of your metals is generally used for tax purposes. That is the value of your bullion at melt value, while the retail value is the price you can sell your metals for.
We’ll use the example of buying a home to help you understand how assessed value and retail value relate to your investment.
Let’s say you purchase a house. When you do, your assessed value is $100,000. In 10 years, your home will be valued at $200,000.
However, when you get your tax bill, it will only be based on the assessed value—even though your home’s value has increased.
The same principle applies to precious metals.
Let’s say the silver spot price is $20 and you have a silver coin with a market value of $40. When you take a distribution out of your retirement account, your taxes are assessed at the $20 spot value even though you could sell it for $40 at the market price.
Meaning you’re paying on the assessed value, not the retail value.
Owning physical gold and silver is one way you can help preserve and even grow your retirement wealth.
At American Coin Co., we have several investment options available like our Depository IRA, Home Delivery IRA, and cash transactions.
This article may contain information from third-party sources that are not affiliated with American Coin Co., American Coin Co., is not responsible for the content, accuracy, or reliability of any information or statements contained in this article that originate from third-party sources. The information contained in this article is provided for informational purposes only and is not intended to constitute legal, financial, tax, investment or professional advice. Any views or opinions expressed in this article are those of the third-party source and do not necessarily reflect the views or opinions of American Coin Co. The inclusion of any links or references to third-party websites or products does not imply endorsement by American Coin Co.
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