If you’re interested in investing in physical gold and silver, then you may have heard the terms “assessed value” and “retail or market value.”
You may be wondering how they differ and how they apply to your precious metals investment.
Assessed Value vs. Market Value
To make this all easier to understand, think of your precious metals purchase as if you were purchasing a home.
The assessed value of your metals is generally used for tax purposes. That is the value of your bullion at melt value, while the retail value is the price you can sell your metals for.
Understanding How They Apply to Precious Metals
We’ll use the example of buying a home to help you understand how assessed value and retail value relate to your investment.
Let’s say you purchase a house. When you do, your assessed value is $100,000. In 10 years, your home will be valued at $200,000.
However, when you get your tax bill, it will only be based on the assessed value—even though your home’s value has increased.
The same principle applies to precious metals.
Let’s say the silver spot price is $20 and you have a silver coin with a market value of $40. When you take a distribution out of your retirement account, your taxes are assessed at the $20 spot value even though you could sell it for $40 at the market price.
Meaning you’re paying on the assessed value, not the retail value.
Owning physical gold and silver is one way you can help preserve and even grow your retirement wealth.
At Red Rock Secured, we have several investment options available like our Depository IRA, Home Delivery IRA, and cash transactions.
Give us a call at (844) 934-1834 to claim your free, no-obligation consultation with one of our Client Success Managers. They’re ready to help figure out which option is best for you.