For years now, people have turned to the internet in order to shop for things like electronics and clothing. Among the many reasons why people choose the internet over brick and mortar stores to do their shopping is not only the ease of not having to leave their houses, but also the fact that taxes do not exist online.
The same concept could be applied to why it is much smarter to purchase gold bullion from online sites such as JM Bullion as opposed to driving all over your area in order to find a store. On top of that, if you do end up at a brick and mortar store, there is no saying whether or not they will have the items, or quantity of items you desire. Before putting an order through online you may want to read shopper experiences with JM Bullion to see how their existing customers feel about them.
Situations like this lead to obvious frustration and prevent people from seeking out brick and mortar precious metals dealers. Online dealers of precious metals not only allow you to browse all of their products without ever having to leave your home, they also tell you whether or not they will be able to sell you as many items as you want. The following few sections will explain why the taxes imposed on large purchases of precious metals can end up making you pay much more than you had anticipated when all is said and done.
Significantly Smaller Bottom Line
If you are from the United States (and a majority of other places around the world) you are likely aware of the fact that taxes are tacked on to nearly every purchase, with the exception of unprepared food and necessities.
Physical gold falls into neither of those two categories, and for this reason, all purchases of gold are taxed. This may seem fair, and it is, but it doesn’t change the fact that these taxes can end up making the amount of money you pay for an order of gold bullion a lot higher than you would have originally anticipated.
For example, in a state with a tax rate of 6% for every dollar spent, you are forking over 6 pennies every time you spend a dollar. This doesn’t seem like much, but for purchases of gold, many of which are in the realm of thousands of dollars, the presence of a 6% per dollar tax means a lot.
Let’s say you make a purchase of a few ounces of gold and the total, for ease of example, is $3,000. While most would expect to pay $3,000 for their purchase, the reality is that with a tax of 6% your grand total will be more like $3,180; an increase of almost $200. If you are extremely rich, almost $200 does not matter all that much, but the reality is that most investors are not incredibly wealthy and are not willing to just give away nearly $200.
A similar purchase online would see your $3,000 total purchase price be only increased by the price of shipping which, I can assure you, is nowhere near $200. The fact of the matter is that even if $200 in taxes doesn’t seem like an astronomical amount, the more you spend the more it continues to add up.
Buying online eliminates the existence of taxes and this is something that shouldn’t be overlooked. In addition to a cheaper bottom line, buying gold bullion online is just easier in just about every way so long as you are making purchases from reputable online dealers. Finding a reputable dealer is a very important facet of buying online and if you fail to buy from a reputable seller you are putting yourself at risk.