Over-the-Counter Cash Transaction

An over-the-counter cash transaction is the anonymous purchase or sale of precious metals (gold, silver, platinum, palladium) for cash, without the dealer recording the customer's identity. The name comes from the fact that the deal is settled literally "across the counter" — at the shop desk. For many investors this was for decades the preferred way to acquire physical precious metal discreetly. Since anti-money-laundering rules tightened, however, the scope for complete anonymity has narrowed sharply.

The legal framework: cash limits and identification duty

Ireland's principal anti-money-laundering statute — the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 — requires dealers in high-value goods, including precious metals, to carry out customer due diligence (identity verification) once a transaction reaches a defined cash threshold.

Important: in Ireland a dealer accepting cash of EUR 10,000 or more — whether in a single payment or in linked payments that together reach the threshold — must identify and verify the customer and keep records. Below that level a genuine anonymous over-the-counter cash purchase remains possible, though many reputable dealers apply lower internal limits or prefer traceable payment methods. (In Germany, by contrast, the equivalent identification threshold for precious-metal dealers was cut to just EUR 2,000 in 2020 — a far stricter regime than Ireland's.)

Where identification is required, the dealer typically records:

1. Full name
2. Date and place of birth
3. Residential address
4. Type and number of the identity document (passport or driving licence)

The tax dimension

The over-the-counter cash transaction has a second, tax-law side. In Ireland a private individual's gain on selling bullion is a chargeable gain subject to Capital Gains Tax at 33%, after the annual personal exemption of EUR 1,270. Crucially, there is no holding-period relief — the gain is taxable however long you have held the metal. (This differs markedly from Germany, where a gain on precious metals held for more than one year is tax-free under the private-disposal rule.)

The anonymity of the original purchase may make it harder to prove when and at what price you bought, but it does not relieve you of the obligation to declare a gain. During a Revenue enquiry, missing documentation can lead to assessments based on estimates. Anyone using the current gold price as a valuation basis should therefore always keep purchase receipts.

Note: this article is not tax or legal advice. For tax questions on buying precious metals, consult a qualified adviser or the Revenue Commissioners.

How a deal works in practice today

At a reputable Irish dealer a precious-metal purchase typically proceeds like this:

• Under EUR 10,000: cash payment without formal identification is generally possible, subject to the dealer's own policy.
• EUR 10,000 or more: identification required and records kept under the 2010 Act.
• On suspicion of money laundering: a suspicious transaction report must be filed with the Financial Intelligence Unit — regardless of the amount.

Dealers who breach their AML obligations risk substantial penalties. Buyers who deliberately split transactions to stay under the threshold ("smurfing" or structuring) defeat the dealer's due-diligence duty and may commit an offence under the 2010 Act where the funds derive from criminal conduct.

Over-the-counter versus online purchase

You can work out the achievable buying price in advance with our calculator — so you walk into any sales conversation well prepared.

Quick recap

In Ireland an over-the-counter cash transaction allows anonymous cash payment on precious-metal purchases only up to EUR 10,000; above that, identity verification is legally required. Anyone buying or selling physical investment gold or silver should always keep receipts, so that the timing of purchase and sale can be evidenced for tax purposes.