How to find the retail cost of 24-K gold

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runnergirl
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How to find the retail cost of 24-K gold

Post by runnergirl »

I recently sold several troy ounces of 24-K gold jewelry. The difference in spot price between the date this gold was gifted to me and the date of sale is over $1000/troy oz. I know this because I looked up the historical gold prices. I have to pay a 28% collectibles capital gains tax. How do I figure out the basis without asking the givers, who I would bet don't even know? Does anyone know the typical markup of 24-kt gold jewelry sold in Chinatown-type places? Is this information good enough for the IRS without actual sales receipts?
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Rob5TCP
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Re: How to find the retail cost of 24-K gold

Post by Rob5TCP »

Chinatown prices can be all over the place. If they can get 2x or 3x spot price they will. I usually buy on 47th street. I do remember getting a good price
on a gold necklace that was 18k. It is almost impossible to figure out my costs so many years later.
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runnergirl
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Re: How to find the retail cost of 24-K gold

Post by runnergirl »

If the prices are all over the place, then what should I tell the IRS is my basis? What do they expect as proof when I have no idea, and the various donors are either deceased or don't remember?
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Rob5TCP
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Re: How to find the retail cost of 24-K gold

Post by Rob5TCP »

If you have a good accountant, he can do an educated guess based on the value when it was gifted.
Or you might go to 47th street (or it's equivalent) and ask what they charge over spot for jewelry.
Obviously, if it were a name designer, it would be considerably more. I am assuming you
sold for the scrap value of the metal.
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prudent
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Re: How to find the retail cost of 24-K gold

Post by prudent »

From my information, it is sold at retail for 2x-3x the value of the gold content. 3x is regular price, 2x is "sale price".

I know that there are places where you can get it for a lot less, but I see no reason to assume the gifters would be experts on where to buy 24k gold jewelry at the lowest possible price.
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runnergirl
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Re: How to find the retail cost of 24-K gold

Post by runnergirl »

Thank you for all the responses so far. I sold it to a place that gives 95% of spot value. The pieces were not designer jewelry. It was of the type that is found on 47th Street (thick chains, bracelets, etc.)--given by many Asians to brides as gifts. So not the typical mall mark-up. Are you saying 2x-3x is typical for Chinatown?
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Rob5TCP
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Re: How to find the retail cost of 24-K gold

Post by Rob5TCP »

There is no way to know. I was watching someone buy a handbag (knockoff) and paying close to $90.
The guy said not to tell anyone the price and made it seem like this was a steal. I paid $40 from another
vendor for the same (very popular Coach) knockoff.
Yes, I bought a knockoff. Most of what i buy are from the Coach outlet - this one I just bought on impulse.
The prices, as I stated are all over the place. Someone they perceive as easy will pay a much higher price
then someone who haggles and looks like they know their prices.
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prudent
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Re: How to find the retail cost of 24-K gold

Post by prudent »

runnergirl wrote:Thank you for all the responses so far. I sold it to a place that gives 95% of spot value. The pieces were not designer jewelry. It was of the type that is found on 47th Street (thick chains, bracelets, etc.)--given by many Asians to brides as gifts. So not the typical mall mark-up. Are you saying 2x-3x is typical for Chinatown?
I was trying not to say that. :)

Chinatown prices to Asians would be more like 5%-10% over the melt value.
wesleymouch
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Re: How to find the retail cost of 24-K gold

Post by wesleymouch »

You can sell to a refiner. 24 carat is pure gold and a refiner will typically pay 95% of spot price (google kitco for the spot price. google gold refiner for the names of reputable refiners). Good luck
Default User BR
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Re: How to find the retail cost of 24-K gold

Post by Default User BR »

wesleymouch wrote:You can sell to a refiner. 24 carat is pure gold and a refiner will typically pay 95% of spot price (google kitco for the spot price. google gold refiner for the names of reputable refiners). Good luck
It's already been sold. The question is determining a cost basis.


Brian
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Re: How to find the retail cost of 24-K gold

Post by Retread »

Are you receiving a 1099 from the purchaser? :happy
Bruce
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Frengo
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Re: How to find the retail cost of 24-K gold

Post by Frengo »

Retread wrote:Are you receiving a 1099 from the purchaser? :happy
Bruce
That and the correct cost basis is the market price of that particular piece of jewelry at the time it was gifted.

If I buy a brand new Mercedes and then resell it for scrap after iron prices have had a huge run it is still a big loss, not a gain.
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runnergirl
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Re: How to find the retail cost of 24-K gold

Post by runnergirl »

Frengo wrote:
Retread wrote:Are you receiving a 1099 from the purchaser? :happy
Bruce
That and the correct cost basis is the market price of that particular piece of jewelry at the time it was gifted.

If I buy a brand new Mercedes and then resell it for scrap after iron prices have had a huge run it is still a big loss, not a gain.
It is my understanding that not getting a 1099 form does not relieve a taxpayer of the obligation to file when he or she receives a capital gain. What does a Mercedes have to do with it?
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Frengo
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Re: How to find the retail cost of 24-K gold

Post by Frengo »

No. It doesn't relieve you from the obligation. Theoretically.
Practically, how will the IRS know that you sold that jewelry at a gain ? You have problems figuring it out yourself; imagine them!

The Mercedes is a different asset than the metal it is made of. Same applies to most jewelry: Its FMV when you acquired it is not the price of scrap gold.
Imagine if it had been a vintage Van Cleef & Arpels: The amount of precious metal would be but a fraction of its actual value.
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Re: How to find the retail cost of 24-K gold

Post by Retread »

You likely have a nondeductible loss. Forget about it.
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