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This move by the Feds will undoubtedly create a black market.
True.
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A lot of dealers who previously were above board will find creative ways to circumvent this new law.
No problem, they won't run a coin biz from the Graybar Hilton.
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For instance a layaway plan could break up one purchase into several separate payments not necessarily tracking what the original purchase was for. For instance if the client was well known to the dealer any number of creative receipt trimming methods could be employed
.
I'll quote a pawnbroker friend who has been asked to make "little" exceptions to the rules: "See that license? It's worth
MANY TIMES its weight in gold. I'm not going to risk it
and my job to save someone else a few bucks."
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Cash purchases in my experience are not recorded by all dealers. Every piece of gold or silver that I have purchased from my dealer has been tax-free and unrecorded.
When such a law came in effect, part of the law would
require such records. It would be very simple to send someone in for a cash deal, followed by LE wanting to see the records. Catch someone several times, steal everything he owns via RICO.
I personally know not one, but
two reputable dealers* who did
federal prison time over the existing $10,000 cash reporting law. One basically took cash out of the bank for a show, and returned it later. He
had records of transactions, but not always the names who paid him cash.
That law, and this potential one, have a line about "structuring". If a customer cashes his paycheck and pays cash for $1000 in silver a month, in a year, he's over the $10,000 (new law $600) limit, and if the dealer didn't report it, he's in violation.
*One, perhaps both, were PNG, one recently was
ANA Numismatist of the Year.
Quote:I think this will most likely affect
ebay transactions or other internet sellers more than anything else. It all depends upon how fervently the Feds want to pursue transactions.
Sure, because
ebay has every transaction on file, and thus very easy to check.
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As usual they will probably use this as another excuse to employ more family members of current Federal employees.
More likely rewards to party faithful.
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Posted 05/30/2011 12:16 pm
