Gold Coins = Gifts

Photo of gold coins

If you were a young adult in the early 1970’s, you may remember those years as a challenging time.  Among other things, inflation shot past 10% with no apparent end in sight. You were losing money by keeping it in a bank with an interest rate that lagged behind inflation. No investment seemed to be safe.

It was in those years that one-ounce gold investment coins first appeared. Initially it was the South African Krugerrand, followed by the Canadian Maple Leaf. The wisdom of the time was that gold was the best hedge against inflation, and sales of those gold coins were brisk.

Many people still have those coins today, stashed and forgotten in a safe deposit box or in the back of drawer. What’s a good thing to do with them?

With the price of gold today over $1,000 an ounce, it might be tempting to sell them to a local coin broker. Given how much those coins have appreciated over the past 40 years, however, a large portion of the increase will go to the capital gains tax on the sale. And the problem may be compounded if you didn’t keep an accurate record of when you bought the coin(s) and how much you paid for them.

One of our donors solved these problems by donating their coins to the University of Maine Foundation. We sold the coins to a local dealer and provided the donor with a gift receipt good for a charitable deduction on their income taxes. Everyone wins!

President’s Club membership could easily be attained with a single ounce of gold.

If you have any gold coins and are interested in the details of how the process works, just contact us and we’ll be happy to answer your questions.