21
   

Gold--A Seller's Market?

 
 
roger
 
  1  
Tue 15 Jun, 2010 11:19 pm
@Thomas,
Thomas wrote:

Have you considered that Roberta's buyer will have to pay sales tax when he resells it?


As you say, we will find out.

Around here, though, anything purchased by a business and specifically for resale is exempt from sales. Farmer buys seed, fertilizer, and machinery to produce a crop. He pays no tax on the seed or fertilizer. It is part of his cost of goods sold. He does pay sales tax on the machinery. He is not selling machinery. Now he sells his grain to a bakery. The bakery doesn't pay tax because the grain is for resale. He bakes bread, and sells it to supermarkets. the bread is for resale, so again, no tax. The supermarket sells to consumers. Now there is a tax, because it is not purchased for resale (food isn't taxed in NM, but what the heck.

Were each intermediate sale taxed, we would end up with something like a value added tax. That's not what we do.

Not arguing, I just though you might be interested in the sales tax system, at least as it exists in New Mexico.
Rockhead
 
  1  
Tue 15 Jun, 2010 11:21 pm
@Thomas,
yeah.

i've been to the city before.

thanks.
0 Replies
 
Thomas
 
  1  
Tue 15 Jun, 2010 11:25 pm
@roger,
roger wrote:
Not arguing, I just though you might be interested in the sales tax system, at least as it exists in New Mexico.

I am. Thanks!

roger wrote:
The supermarket sells to consumers. Now there is a tax, because it is not purchased for resale (food isn't taxed in NM, but what the heck.

... and because the supermarket wants to make a profit after paying taxes, the tax will affect the price it'll be willing to pay the baker ... and so forth back through the supply chain.
roger
 
  1  
Wed 16 Jun, 2010 12:43 am
@Thomas,
Well yes, taxes do effectively increase the cost of a transaction and discourage economic activity.

Still don't see Roberta (seller) having to collect sales tax from her buyer. If her buyer isn't retailing the bracelet, I don't see either him or his buyer at the smelter collecting or paying sales tax. Now, after the thing is melted down and recast as umptyump pairs of ear rings, the final buyer is going to be taxed on the sale, and possibly an excise tax on fine jewelry. Not that the price of fine jewlery is much related to the consumer price. Don't believe me? I'm willing to start saving Tiffiny advertisements for you.
0 Replies
 
Roberta
 
  1  
Wed 16 Jun, 2010 12:54 am
Among the many things I don't understand is this: If I have to pay sales tax when I buy something, why do I have to pay sales tax when I sell something?

Aren't I confused enough?

I am a person of above-average intelligence. Yet I become an idiot when two things come up: numbers and computers. I'm pondering whether it's a true lack of understanding. I do know that when either subject comes up, my eyes glaze over, and my brain shuts down. Why? dunno.

Thomas
 
  1  
Wed 16 Jun, 2010 01:02 am
@Roberta,
Roberta wrote:
Among the many things I don't understand is this: If I have to pay sales tax when I buy something, why do I have to pay sales tax when I sell something?

You don't have to pay sales tax to the government. But the sales tax paid by your buyer, or even by your buyer's buyer, will affect the price they're willing and able to pay to you. It is in that sense that you have to deduct the sales tax.
Roberta
 
  1  
Wed 16 Jun, 2010 01:10 am
@Thomas,
Thomas wrote:

Roberta wrote:
Among the many things I don't understand is this: If I have to pay sales tax when I buy something, why do I have to pay sales tax when I sell something?

You don't have to pay sales tax to the government. But the sales tax paid by your buyer, or even by your buyer's buyer, will affect the price they're willing and able to pay to you. It is in that sense that you have to deduct the sales tax.


Aha. Gotcha. Light bulb moment. I understand. Thanks, kid.
0 Replies
 
roger
 
  1  
Wed 16 Jun, 2010 02:18 am
@Roberta,
I don't know if you ever noticed, Roberta, but when people show you how to use computers, cell phones, and the like, they really aren't. They're showing you how well they can use them.
Butrflynet
 
  1  
Wed 16 Jun, 2010 02:33 am
@roger,
That goes along with the old saying that you don't really know something until you can teach it to someone else.
roger
 
  1  
Wed 16 Jun, 2010 03:41 am
@Butrflynet,
Yeah. I've written a couple of office manuels, and they were never complete till I tried to follow my own instructions.
dlowan
 
  1  
Wed 16 Jun, 2010 07:24 am
@roger,
Did anyone manage to direct you to a reputable buyer Boita?
ossobuco
 
  1  
Wed 16 Jun, 2010 10:48 am
On that ring of mine - I finally found my handy purse size magnifying glass, and, there ya go, it's 14k. Thanks all, I learned something new.
farmerman
 
  1  
Wed 16 Jun, 2010 11:38 am
@ossobuco,
anybody have any experience with the term CHINESE GOLD? Is that a karat weight or an amalgum term?
0 Replies
 
Roberta
 
  1  
Wed 16 Jun, 2010 11:44 am
@dlowan,
dlowan wrote:

Did anyone manage to direct you to a reputable buyer Boita?


Direct me? No. Gonna start making phones calls.

The book I'm proofreading refers to tonnes rather than tons. I just check to make sure that it's spelled right, and I move on.
Thomas
 
  1  
Wed 16 Jun, 2010 12:01 pm
@Roberta,
How quaint! Does the book also refer to "shoppes" and "townes"?
Roberta
 
  1  
Wed 16 Jun, 2010 12:24 pm
@Thomas,
Hasn't mentioned shoppes and townes.

Tonne is some kinda metric thing.
0 Replies
 
Roberta
 
  1  
Wed 16 Jun, 2010 01:12 pm
I let my fingers do the walking. Called five places.

I got estimates ranging from $1,625 down to $1,300.

I have four appointments on Tuesday. One place I can just walk in.
JPB
 
  1  
Wed 16 Jun, 2010 01:15 pm
@Roberta,
Have you considered checking with a couple pawn shops (or shoppes) for comparison? They may be willing to give you more than just the worth of the scrap metal. If it's a lovely piece of jewelry then they may offer you something for the resale value.
0 Replies
 
Thomas
 
  1  
Wed 16 Jun, 2010 01:35 pm
@Roberta,
Roberta wrote:
I got estimates ranging from $1,625 down to $1,300.

And $1625 means $1625 of cash in your hand? I'm having gefilte bluefin tuna at that deli!
0 Replies
 
ehBeth
 
  1  
Wed 16 Jun, 2010 01:50 pm
@Roberta,
Those are very good numbers. Much higher than I'd have anticipated.
0 Replies
 
 

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