Category: Gold Coins

Investment in gold in the form of gold coins and bars is ideal for protecting part of your savings from inflation. Do you have gold that you inherited, or in which you had invested several years earlier, and now wish to part with it? When selling it, it is necessary to fully understand the rules to be respected in terms of taxation. We explain everything you need to know in this article.

Taxes on the sale of gold

As an individual, if you sell gold you are required to declare this sale and pay a tax on the transfer of your gold. You then have the choice between the flat-rate tax on precious metals and the capital gains tax regime. The flat-rate tax on precious metals amounts to 11.5% of the total amount of the transaction, including 11% taxes and 0.5% for the contribution to the repayment of the social debt (CRDS).

The capital gains tax is 36.2% but it only concerns capital gains, ie the difference between the sale price and the purchase price. If this difference is nil or if you resell below the purchase price, you will not have to pay tax. On the other hand, the capital gains tax is degressive, with a reduction of 5% per year from the third year of ownership. Finally, after 22 years, the sale of your gold is exempt.

To be able to choose the tax on capital gains, you must justify using a nominative document (invoice, notarial deed, deed of gift), the date, and the price of acquisition.

The tax declaration

Whether you choose the fixed tax on precious metals or the tax on capital gains at the time of your sale, you will have to complete a form to send to the tax office, including the tax. In the context of a sale between individuals, it is therefore up to you as the seller to pay this tax to the tax authorities. The transferor must declare his sale within 30 days and pay the amount of the TFMP or the TPV, as the case may be.

Choose a gold professional

As professionals in the purchase of gold,your Gold in Cash agencies can manage the taxes to be applied for you. So you won’t have to do anything. When selling your gold, the manager of the OR EN CASH agency will deduct the tax according to the regime you have chosen and will pay you the difference. The nature and amount of the tax will appear on your sales documents, and the Gold in Cash guarantor will take care of paying the amount of the tax levied to the State himself.

To resell your gold, silver, platinum, and gold and silver plated with peace of mind, call on the Gold in Cash specialists.…

The premium of a gold coin is the difference between its negotiated sale price, and the actual value in weight of gold it contains, also called “spot” value.

Depending on its rarity and supply and demand, a coin may benefit from a premium that will allow its owner, at the time of resale, to benefit from a capital gain compared to the spot value. The premium does not or very little concern gold bars, the price of which is mainly defined by their weight in pure gold.

What are the criteria for the premium on bullion gold coins?

It is necessary to differentiate between the criteria for defining a gold coin as investment gold and the factors that influence the premium of a coin.

Investment Gold

To benefit from the resale taxes applicable on investment gold, the coins must meet a certain number of criteria:

• They must have been minted after 1800;
• their gold purity must be greater than or equal to 900/100;
• they must be or have been legal tender in their country of origin;
• the premium should not exceed 80% of the spot value of the coin.

The last point is the one that will interest us the most: highly prized coins are not considered investment gold if their aggregate value exceeds their price per weight in gold. In this case, it is the fixed tax on precious objects that applies at the time of resale.

Premium Factors

Two main factors affect the premium amount of an exchangeable coin :

• Scarcity, depending on supply and demand;
• The general condition of the piece: conservation, scratches, traces of wear or fingers…;
• Pieces are classified according to their quality, from BE (Belle Epreuve, the optimal level) to M 1-2 (Mediocre).

Fund premium and premium differential

The background premium is the average premium of a coin outside of times of global economic or financial crises. A low premium means that the price of the coin is close to the value of its weight in gold. The premium differential refers to the difference between the background premium and the highest premium observed on a coin. For example, in normal times the premium of a 20 Franc Napoleon coin is low or zero. However, during the economic crisis of 2008, his premium rose sharply, and the premium differential reached around 45%.

Particularly popular, Napoleons are a good example of low-premium coins to invest in. To increase your chances of benefiting from a resale premium, favor the purchase of parts with a low background premium and a high premium differential.

Which parts are affected by the bounty?

Very popular with investors, Napoleons are a good investment to benefit from a premium. Among them are pieces such as the Napoleon 1st, the Napoleon III, the Marianne Coq, the Louis Philippe, and even the Bonaparte. Some of them, like the Louis Philippe and the Bonaparte, have high premiums and will be hard to find at the spot price. On the other hand, Napoleon III and the Marianne Coq are ideal for investment: their value tends to increase in times of financial crisis, and stagnate when the financial markets are doing well. It is therefore easy to buy it at the spot price and then resell it at a premium.

Napoleon coins, depending on their date of minting and their type, can be potentially premium: for example, the Napoleon III laureate head has a higher premium than the Napoleon III bare head, for historical reasons.

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