Episode-395- An Interview with Rob Gray of the AOCS — 11 Comments

  1. I have been saving pre-1964 silver and eagles for some time now and I really liked today’s show. I would be interested in getting the Lakota Medellians and seeing if there are any stores out my way. Keep up the good work.

  2. I enjoyed the show, but I’m still trying to wrap my head around this other form of currency. How does sales tax work with buying silver and if you purchase anything with silver? Have you looked into getting a farmers market to accept AOCS coins? What about using them to pay the city of Farmers Branch utilities? How do you make change for an item(store credit)? Sorry for all the questions but I’m really intrigued by this.

  3. This was a fun episode. You guys really made me think.

    My big question is, how does Mr. Gray handle taxes? Last I checked, the IRS likes to treat barter as taxable income. I’m sure the state and local governments would want the usual sales taxes on any retail transactions. And they’d want it in US$. Is he setting himself up for audits and fines or worse?

    Also, with most radio shows and podcasts where someone interviews someone else, the “host” has relatively good sound quality and the “guest” sounds like he’s on a telephone. I noticed that this one was the opposite. What’s the story?

  4. You might also want to check out the system that Turk and Rubino came up with…digital gold, mentioned in their book –

    They sell and store gold, silver, and platinum overseas and also have some sort of money exchange network set up. I like what they have ( but I really like what I heard on your program today also.

  5. Just a Guess:
    The IRS can easily determine the market value of silver and they will go over the merchants sales that are in dollars to determine the fair market value of his merchandise, but If all your sales are in barter/trade they would have to use what you say it is worth.

    inflate the value of your stuff and then exchange it at a loss or break even point on a trade with silver; This would lower or eliminate you tax liability as a merchant. And you can also depreciate and write off at these inflated values. I think this what Jack was getting at when he was talking about how your buying power increases.

    I think for both parties this exchange would work well as long as your selling to a end consumer (not trade/barter with other businesses)
    and seller trades at a loss compared to dollar sales and/or price of silver.
    Didn’t know guys were doing this . Great job JACK!

  6. Big improvement on caller audio today! Previous interview shows I have had to go back-n-forth on the volume. This show was well balanced and very clear for the caller. Jack was scratchy though, but this isn\’t a show format where Jack does a lot of talking. Whatever setup was used this time – use it next time!

    Glad you finally answered my question though. I posted on the June 12th show asking how much MSB dues would be in silver. 🙂

  7. Jack, I know you\’ve been working on your audio. Rob\’s audio sounded awesome. FM vs AM. Very neat show and I too am trying to fully understand this concept.

  8. Great show Jack! This left me with so many more questions than answers! I understand the applications here when used for goods and services through this network. Like someone else asked what would be the tax consequences for doing this not only for the merchant but for the consumer? If more people use silver this way how does that change our current economic situation? What was not answered clearly was the long to term goals of doing this and the desired outcome? What is in it for the average Jane/Joe? We would still have to deal with two currencies the crappy dollar and silver. Why not just hold your silver and wait for the collapse of the dollar? I would like a more in depth conversation on this topic!

  9. If anybody thinks the IRS will “use what you say it’s worth” when determining the fair market value of a good or service, has never dealt with the IRS.

    All of this stuff is great. My business belongs to a bartering organization. For example, I’ll call a plumber in the barter exchange and he’ll come unclog my greasetraps in exchange for 4 dinners, etc. However, for you to run amok of the law, all of this needs to be tracked exactly as it it were a cash transaction. Cooking your books in a barter situation is just as illegal as cooking them in a cash situation.

    Number 1 rule of staying out of handcuffs with the IRS? Report all income. Everything after that is a matter of opinion. However, if you willfully under report income, you are asking for an all expense paid trip to Federal prison.

  10. In the interview Jack was saying he bought grass fed beef at a lower price than fair market value, this is what they said encourages people to keep their money in silver. Does this mean the AG trading post is just making less profit?
    From what I read, when bartering between businesses, both parties must report it as income. … but there is an equitable loss. Does this mean that there is no net tax?
    I would think that if your tax liability is the same and your taking dollars out of the fiat currency thereby perpetuating it, the only advantage for a merchant is to be prepared for a high inflationary period. Is this correct?

  11. I’m thinking the only thing to understand is that someone is selling silver and wants someone to buy it?