I used to work in the USG taxation arena, and it’s full of complete idiots. The problem is that dorky Government employees reference these “memos” (which are strictly non-legislated interpretations - the difference between law and regulation) of conditions for which most of these employees have no clue. What person in their right mind who differentiate to this level between two products – “proof” and “uncirculated” - of the US mint – sisters if you will – to say one is ‘legal” and the other is not? Only an attorney, and for any of you over 40 and having known attorneys, you can all agree that attorneys are innumerable, filled with worthless opinion and for every one on the left, there’s one on the right.

It’s all opinion and conjecture.

Any rational coin collector will tell you that a proof - or uncirculated - Buffalo is not a “collectible” in the Franklin Mint sense (the only OTHER sense there is) and that it is valued inherently at bullion price. How do you know?

Try and buy from the Mint when the gold price fluctuates higher than the website price. The “coin” you buy today wasn’t made today – it was made weeks ago, perhaps months before. But…they’re pulled from sale, correct? When gold goes up, the Mint raises the price of EXISTING INVENTORY, takes profits over and above the intended profits when these were planned or manufactured. Ergo, the Treasury Department has thus proved decisively that these “coins” are not priced as collectibles (at the manufactured price of the inventory in stock) but at the current daily price of gold.

First off, they’d lose they ass in court, but you won’t have to do that. All you have to do is write your Congressman to investigate why some low-level civil servant is applying such a patently defective logic to corrupt existing legislation that permits you to invest in gold and silver product from the US Mint.

This is akin to offering tax incentives for buying hybrid fuel vehicles, but not the yellow one! Insanity.

Let me tell you friends, if you can look an auditor in the eye and justify with reasonability, you can win. You can’t win by yelling but you can win by logic and comparison as in this case. Document your investments.

Besides, how likely are you to be audited? About 1 in 100,000. And the auditor has to be aware of this difference in “Proof” and “Uncirculated” to even make a comment.

My suggestion? Ignore the “controversy” and buy your bullion. If you “ask” for an IRS opinion, you merely draw attention to yourself. Just do what you think is right.