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How To Trade Gold?

Why is it illegal to Trade for GOLD?

  • i saw an episode of '' pawn stars '' where a guy wanted to trade a rare old car for gold the owner said he couldn't legally trade the car for gold but gave the guy cash and then he purchased $95,000 in gold why can't you legally trade for gold??

  • Answer:

    Gold as jewellery and commodity can be bought and sold everyday both in the gold and future market. There is no legal limit. But you can not take gold over the legal limit out of the country.A central bank gold reserve cannot be bought and sold by individual without license.There is no barter system in pawnshop.You get cash for your gold at the price determined everyday. And you can't use your cash to buy things in pawnshops,except the things on auction sale.

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It's not normally illegal for private parties to trade gold (or anything else) -- but maybe there was some local or state ordnance preventing pawn shops from doing so in order to prevent black market transactions that avoid tax, or something. Or the pawn owner was falsely claiming that in order to force a cash transaction. The pawn shop's problem is that it has to pay taxes to the government and all its other expenses in dollars -- so it can't be doing all it's business in barter.

Spotty J

I would say 2 things: 1) its a tv show cliche, ie its from crime ect or 2) cash is ''legal tender'' so thats the only payment type they have to accept, they dont have to accept the gold

Andy

Snuggles

Not an answer, but I am watching that very same episode as I type wondering the same thing.

PcolaSteve

I wasn't aware it was, but I'm guessing the main reason would be tax purposes.

TheKitten

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