Is It Illegal to Own Gold Bullion? (2024)

FAQs

Why is it illegal to own gold bullion? ›

The stated reason for the order was that hard times had caused "hoarding" of gold, stalling economic growth and worsening the depression as the US was then using the gold standard for its currency.

Today, there are no specific limits on how much gold a person can own in the U.S. Whether it's bullion, coins, or jewelry, you can buy, own, and possess as much gold as you like. The only restrictions may come from reporting requirements if you simultaneously buy or sell large amounts of gold.

You can purchase gold in any amount using cash. However, if your purchase exceeds $10,000 in value using cash or its equivalents, you must complete Form 8300. This form asks for essential details like your name, address, and social security number.

The United States has no limits on buying, selling, or owning gold. An individual can buy and sell as much gold as he or she wants, and there are no restrictions on owning it for investment purposes.

Of course it is possible; it has been done before and governments in times of stress simply change the laws. As you can see above, gold bullion was forced to be sold to the government in 1933.

A US citizen can legally own as much gold as they would like, with no specific limits set by the government.

The answer is yes! You can sell any raw gold or gold coin you find, whether it's gold nuggets, gold dust, gold coins, pure gold, gold ore, or even jewelry. Of course, you'll need the proper documentation and obtain any necessary permits before selling it.

The 1933 Double Eagle $20 gold coin remains illegal to possess due to its historical and legal circ*mstances. Collecting rare or collectible gold coins is legal, with coins such as the Saint-Gaudens Double Eagle and American Gold Eagle highly sought after for their rarity and historical significance.

As collectibles, rare coins do not fall within the provisions permitting confiscation. No federal law or Treasury department regulation supports these contentions. The myth that specific types of gold coins are “not confiscateable” stems from the Executive Order that President Roosevelt issued in 1933 calling in gold.

When a consumer sells a reportable quantity of specific bullion or coins, precious metals dealers are required to file Form 1099-B with the IRS. Failure to follow reporting requirements can result in the IRS issuing monetary fines, or even criminal charges against both the precious metal dealer and the customer.

How does the government know you sold gold? ›

Reportable Sales

Customer sales to dealers of certain precious metals exceeding specific quantities call for reporting to the IRS on 1099B forms. The 1099B forms are similar to other 1099 forms taxpayers commonly receive; the “B” means they have been issued by a business other than a financial entity.

Gold bars are indeed traceable, primarily through serial numbers, hallmarks, and certification processes.

Ultimately, many argue that outlawing gold ownership was a central pillar that made FDR's New Deal programs possible. Without the ban, the government would have violated its laws against printing money. Fast forward to the 1970s, when the U.S. was looking at another crisis in the works.

Gold stored at home under a self-directed IRA is subject to taxation by the IRS, and for individuals below 59 ½ years, there's an additional penalty of 10% for early withdrawal. Also, storing your IRA gold at home for self-dealing is prohibited under IRS laws and could jeopardize your retirement investments.

For short-term needs, cash is better due to its unmatched liquidity. For long-term buy-and-hold investments, gold is preferable to protect against inflation and provide portfolio diversification. The ideal solution is to hold both but allocate based on your specific needs and risk tolerance.

President Franklin Delano Roosevelt's 1933 executive order outlawing the private ownership of gold in the United States was arguably unconstitutional.

However, gold is typically a poor investment option when the economy is strong. It will often lose money during these periods as investors sell gold to put their money in the stock market and other growth assets. In the long run, gold has a significantly lower average annual return than stocks.