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ReadEmAnWeep (85.82)

How do they tax physical gold?



July 20, 2009 – Comments (7)

In the comment section of a the blog "Deciding to live on the gold standard? Help!", I had the short conversation:



ReadEmAnWeep (36.43) wrote:

If you convert all your assets to gold, or lets just say invest in physical/actual gold, do you avoid taxes on the appreciation?


silverminer (99.72) wrote:


No, unfortunately gold and silver are treated by the IRS as "collectibles", giving them the highly ironic ability to tax them at the highest capital gains rates.


ReadEmAnWeep (36.43) wrote:


man, that figures. I thought I had finally found a nice little hole. lol.




I was just wondering how they can tax physical gold. Do they keep track when you buy/sell a 1 oz. gold coin? Or is it something that is marked on your tax forms?


7 Comments – Post Your Own

#1) On July 20, 2009 at 4:45 PM, AmsterdamExpat (99.93) wrote:

I have never seen a section for collectibles on a tax form and I do own physical silver.

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#2) On July 20, 2009 at 5:03 PM, usmilitiadude (< 20) wrote:

Interesting find. Who knows if its true. Would you work for two or three dollars per hour, if paid with silver and gold coins?

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#3) On July 20, 2009 at 5:16 PM, tonylogan1 (27.57) wrote:

there was an interesting IRS case against a guy who ran a business where he paid all wages in gold coins.... and people reported their earnings in gold dollars rather than federal reserve notes.

Since it said dollars and not federal reserve notes in the statute, the guy avoided jail time, but I think he still faced large fines.

You should be able to figure out for yourself with a little internet research how to minimize your tax impact by holding physical metal.

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#4) On July 20, 2009 at 5:17 PM, mas113m (< 20) wrote:

Here's one way they track gold sales. A coin dealer must report to the IRS whenever a customer purchases or sells $10k or more of rare/bullion coins in a year. Similiar to how banks report transactions of 10k or more, but this is cumiliative for the year.

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#5) On July 20, 2009 at 5:47 PM, theHedgehog (< 20) wrote:

Firstly, note that I am not a tax expert.

From the 2005 Ernst & Young Tax Guide:

Investment Property:

Investment property is a capital asset.  Any gain or loss from its sale or trade is generally a capital gain or loss.

Gold, Silver, stamps, coins, gems, etc.

These are capital assets except when they are held for sale by a dealer.  Any gain or loss you have from their sale or trade generally is a capital gain or loss.  (But it goes on to point out that losses on such properties "generally are not deductible".

So, it depends.  Hopefully, if it's just bullion grade gold/siliver, you might get a deduction for losses.  BUT, talk to a professional first!

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#6) On July 20, 2009 at 11:34 PM, ChrisGraley (28.51) wrote:

Again, I'm no tax expert, but gold coins minted in the US and gold bullion can be held in a Roth IRA.

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#7) On July 21, 2009 at 12:02 AM, FleaBagger (27.50) wrote:

usmilitiadude - If $2 is the face value of the 90% silver US coins I'm being paid, that $2/hr would be more than I've ever made at a full-time job (at the most recent spot prices).

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