Rev. Rul. 56-649

Section 4001 of the Internal Revenue Code of 1954 imposes a tax upon the sale at retail of pearls, precious and semiprecious stones, and imitations thereof. A retail dealer sold such an article to a customer who stated that he intended to hold it for investment purposes, rather than to use it for personal adornment or decorative purposes. Held, the sale of pearls, precious or semiprecious stones, or imitations thereof, to be used by the purchaser for investment purposes is a sale at retail within the meaning of section 4001 of the Code and, therefore, is subject to the tax imposed by that section.