Selling gold - how, why, where

[bigkingsalmon]

Hi everyone. Any advice on where I can sell my gold nuggets in Cairns. I would prefer to not have to mess around with postage and payment for out of town sales. Any advice would be appreciated.

 

[grubstake]

Based on old Kalgoorlie experience, try your local jewellery shops.

 

[Trash]

I think the local Detecting shop closed up or got taken over ?

If they are still there , they should offer a fare price

 

[Lanky]

i see there is a club/PA gathering up here in a week or two, take em along maybe...somebody usually knows someone who wants some!

 

[Simmo]

Take them to John at Bradfords exchange. Behind Cairns Central.

 

[Moneybox]

Hi everyone. Any advice on where I can sell my gold nuggets in Cairns. I would prefer to not have to mess around with postage and payment for out of town sales. Any advice would be appreciated.

I love to see a photo of what you're finding up that way

 

[user 7268]

Hi everyone. Any advice on where I can sell my gold nuggets in Cairns. I would prefer to not have to mess around with postage and payment for out of town sales. Any advice would be appreciated.

I love to see a photo of what you're finding up that way

MB best I've seen from up that way was a 5 0unce specie but sadly no pics. Imagine a chocolate easter egg that filled your palm rolled in gold glitter and you get the idea Was the guys first time out also and has told me since the only down side is he probably peaked his best ever find on his first run

 

[waynec]

How much Tax would i have to pay selling Gold Nuggets to a refinery ,would it be classed as normal income Tax or whats the go ,

also can anyone reccomend a good place to sell ?

thinking about selling 15 20 ounces of varies sizes

Wayne

 

[Troutman]

Hi Wayne,

Unless you are prospecting as a professional (that would entail telling the Tax Office that you are in the business of Gold prospecting then claiming all your equipment such as detectors, picks etc. travel expenses, motor vehicle expenses, fuel and so on as tax deductions) then you are most likely only prospecting as a hobby.

There is no tax payable when you are engaged in a hobby. You can't claim any expenses, but you also don't have to pay any tax.

As to where to sell that will draw many responses depending upon what sort of gold it is (dust/small nuggets/larger nuggets), where you are located, what access you have to gold buyers and how quickly you want to conduct the sale.

You may even find members on here who would buy from you and once you have 10 posts you will have access to the buy and sell section.

For 15 to 20 ounces the Perth Mint is probably the easiest, quickest and fairest way of selling. They will assay the gold, report back to you on the purity and also pay you for any silver that is included with the gold.

Cheers,
Troutman

 

[waynec]

Thanks Troutman it is not a profession just a normal detecting guy just dont want to loose a lot to Tax man .

its hard to know i hear a lot of different stories regarding Tax , i do have a small buisness but it is nothing to do with gold .

i am in Victoria and they are all nice clean nuggets from my collection up to 7-8 grams in this lot ,

Wayne

 

[Ward69]

Current spot price is $53.47 24k , need to see photos. And what you are asking for.

 

[waynec]

spot is 55 .41where i am looking , are you a buyer Ward69 ?

 

[Ward69]

Sorry looking at agent price. You are correct 55.41 now No not a buyer. Just a hobbyist

 

[Mr Magoo]

You should keep a copy of this. - http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID2003451/00001

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

 

[waynec]

Looks like thats from 2003 would that be still valid do you think Magoo ?

 

[Ded Driver]

it would be good to know if anyone has the all ATO gold rules figured out.
sometime recently a 'reverse rule' relating to GST & CGT (capital Gains Tax) was laid down by the ATO
this is dated 2nd Aug 2018
https://www.ato.gov.au/Business/GST...harge-in-the-valuable-metals-industry/?page=2
there are differences trading/selling bullion vs 'scrap' (jewellery etc)
https://community.ato.gov.au/t5/General-tax-questions/Taxation-of-Gold-Bullion/td-p/2013
and this website
http://preciousmetaltax.com/australia-taxation-of-gold-and-silver/

maybe we should just hide it under the pillow until anarchy rules & we need it to trade in place of a useless currency :goldnugget: :8

 

[Mr Magoo]

Looks like thats from 2003 would that be still valid do you think Magoo ?

I did notice the date but it is up on the website and I would believe in good faith that the website is current and correct.
Personally I would be keeping hold of that and the date I came across it.

 

[Simmo]

You would not need to pay tax as a hobbyist bro, but you wont necessarily get spot price either... (normally)..
Selling in smaller parcels would be easier, say on Ebay etc....
The spot price is for assayed gold, which I assume, you ain't got?!

 

[AngerManagement]

Gets complicated - and depends on any number of interpretations of laws..

Some say it is just a hobby, but once you start to require a licence to Fosssick / Mine /Prospect then you also need to look at some of the wording in the relevant
documentation... Thus TAX may be an issue if your selling but unless selling substantial amounts, then your free from Royalties. $$$ in is all an income but it is how you manage it...

****************
Qld for eg...

Sale and trade of collected material
You can sell the occasional lucky find of a gemstone or sell and trade to hobbyists or through fairs and exhibitions.

However, repeated removal for sale through shops or businesses, or as part of making a living, is considered commercial, and requires tenure under the Mineral Resources Act 1989.

Royalties are payable on fossicking materials that are the property of the Crown, but threshold exemptions of $100,000 mean that generally most fossickers are not liable.
****************

My Accountant and Solicitor have both looked at this and ( both said it could get messy ) but as I have an ABN and do the odd occasional Detecting job and get paid. Then I have no problems having any income recorded AS I also then document any and all relevant expenses. Doing your expenses is key and so is having a good tax adviser...

Never make / find enough that means I have to pay TAX but comes close to hurting my Low Income status... For me it is better safe than sorry... But like always, you have to deal with the right qualified people and not FB or other third hand info...

 

[user 4485]

Some good answers/advice here:
https://www.prospectingaustralia.com/forum/viewtopic.php?pid=447516#p447516