Current Affairs

Capital Gains Tax for Rare Coins and Precious Metals

NCBA has supported the World Gold Council’s efforts toward federal legislation that would qualify gains from precious-metals investments for the lower capital gains tax rate. NCBA will continue to push for this and for legislation that would also qualify rare-coin investments for the capital gains rate.

Chinese Counterfeit Coins

NCBA is working with the US House of Representatives Committee on the Judiciary to stop the influx of high-grade counterfeit coins manufactured in China. NCBA was the one who originally brought this issue to the attention of relevant congressional committees and members of congress, and it continues to work to solve this serious problem.

FAA/TSA/DHS Airline Security Regulations

NCBA continues to communicate regularly with the Federal Aviation Administration (FAA), the Transportation Security Administration (TSA), and the Department of Homeland Security (DHS) to assure that our members are able to transport the coins, precious metals, and currency necessary for participation in shows and conventions. We’ve worked with TSA to educate airport screeners about this type of merchandise.

Federal Trade Commission

An industry group of literary experts approached the Federal Trade Commission (FTC) regarding three consumer alerts it had published on the FTC's website about investing in precious metals. Working through NCBA, this group has completed editing one of these alerts  to ensure clarity, accuracy, and helpfulness to consumers. NCBA will continue to work with the FTC on materials published on its website.

Financial Reform

NCBA monitors congress and federal agencies for changes in delivery requirements for physical precious metals, and for any other CFTC provisions that might adversely affect rare-coin and precious-metals dealers. As part of the Dodd-Frank Financial Reform Act passed in 2010, the CFTC attempted to decrease the time-tested 28-day delivery window for physical precious metals to as little as two days—an impossible standard for our industry to meet. NCBA successfully fought off the change.

Individual State Issues

NCBA is frequently able to provide data and support to state organizations. NCBA’s information is often critical at the state and local levels to help prevent excessive-holding laws, reporting regulations, and erroneous enforcement of sales taxes. NCBA continues to assist efforts to achieve additional state sales-tax exemptions.

Interstate Collection of Sales and Use Taxes

For several years the states have been working together to create a “simplified” sales tax plan (SSTP). Under an SSTP, the US Congress would grant states the power to force out-of-state merchants to collect and remit sales taxes for each state. Proponents of this plan claim Internet businesses have an unfair advantage over brick-and-mortar businesses and would like the plan to affect all mail, phone, and Internet sales. In addition, a provision in this plan calls for elimination of any sales-tax exemption that has a minimum or maximum (many sales-tax exemptions on precious metals and coins have a minimum-transaction threshold). This plan has substantial support in congress, and NCBA is working to help defeat it. This is a very large issue with the potential to change the way US merchants have conducted business for more than 200 years. Preserving our existing sales-tax exemptions is critical.

Restoring Rare Coins in IRAs

NCBA is currently working with CERT to have rare coins restored as qualified investments in IRAs and similar self-directed retirement plans.

Anti-Money Laundering (AML) Regulations

Since January 1, 2006, Section 352 of the USA PATRIOT Act has specifically targeted precious-metals dealers. Additional AML regulations were added in 2020 as part of the National Defense Appropriation Act . NCBA has worked with the US Department of the Treasury to help it develop reasonable compliance regulations that will satisfy its anti-terrorism requirements without being overly burdensome for rare-coin and precious-metals dealers. This involves not only educating the Treasury on the particular needs of our industry, but also developing excellent Treasury contacts to help clarify specific points of the PATRIOT Act and other aspects of the cash-reporting and AML laws that impact our industry. (In our work with the Treasury and other government agencies, we sometimes obtain critical clarifications that are available only through NCBA. Even an IRS examiner may not have these documents.)

Proper and timely compliance with the AML laws and regulations is extremely important. Ignorance of the law is not a defense and can result in calamitous financial penalties and even prison terms.

VAT (National Sales Tax)

The United States is the only major power that does not yet levy a value-added tax (VAT) or similar national tax (called the “goods and services tax” in Canada). NCBA is constantly on guard against efforts to impose this kind of tax in the United States, as it would be disastrous for the rare-coins and precious-metals industry.