How Are Gold and Silver Taxed When You Sell Them?

If you sell gold or silver for more than you paid, the profit is taxable. That is true whether you sell a single coin to a local shop or a box of bars to an online dealer, and whether or not anyone sends you a tax form.

What surprises many people is the rate. The IRS treats gold and silver coins and bars as collectibles, the same group as art and antiques. Long-term gains on collectibles can be taxed at a higher maximum rate than gains on stocks.

This page explains the federal rules in plain English: the collectibles rate, short-term and long-term gains, cost basis, losses, the forms, and the records to keep. It covers metal you bought with regular savings and hold yourself. Tax rules are detailed and depend on your whole tax picture, so use this as background and talk to a tax professional before you file.

Is gold a collectible for tax purposes?

Yes. For federal income tax, gold and silver coins and bullion are collectibles.

The tax code's list of collectibles includes "any metal or gem" and "any stamp or coin" (26 U.S. Code section 408(m)). The IRS Schedule D instructions say the same thing in plainer words: collectibles include "metals (such as gold, silver, and platinum bullion)," along with coins, art, antiques and stamps.

You may have read that some coins, such as American Eagles, are allowed in an IRA. That exception is only an IRA rule. The part of the tax code that sets the collectibles rate, section 1(h), uses the collectibles definition without that IRA exception. So an American Eagle in your own safe is still a collectible when you sell it.

What is the capital gains tax rate on gold and silver?

If you held the metal more than one year, the gain is long-term and can be taxed at up to 28%. If you held it one year or less, the gain is short-term and taxed as ordinary income, at the same rates as your wages or pension.

The IRS puts it this way: net gains from selling collectibles "are taxed at a maximum 28% rate." For comparison, the top long-term rate on most other assets, such as stocks, is 20%, and the IRS says most people pay no more than 15%. So gold and silver held outside a retirement account are often taxed more heavily than stocks held for the same time.

The 28% figure is a ceiling, not a flat rate. How much of your gain is taxed at that rate depends on the rest of your income for the year. A worksheet in the Schedule D instructions works it out (more on that below).

Two more things can apply:

• Net investment income tax. The IRS notes that people "with significant investment income may be subject to" this extra federal tax. It can apply to gains on metal too.
• State income tax. Most states also tax capital gains. Each state has its own rules, so check with your state or a tax professional.

How do I work out my cost basis?

Your cost basis is generally what the metal cost you. Your gain is the sale price minus that basis.

The IRS says "the basis of property you buy is usually its cost," meaning the amount you paid in cash or other property. IRS Publication 551 adds that cost includes items such as sales tax and freight.

So for most buyers, basis is generally the full purchase price, including the dealer's premium (the amount above the spot price, which is the market price for raw metal), shipping and any sales tax you paid.

If you bought the same kind of coin at different times and prices, keep track of which pieces you sell. Each purchase has its own basis and its own holding period. A tax professional can help you match sales to purchases if your records are mixed.

What if I sell gold at a loss?

A loss on metal you held as an investment is generally a capital loss. It first offsets your capital gains for the year.

If your losses are bigger than your gains, the IRS lets you deduct up to $3,000 of the net loss against other income each year ($1,500 if you are married and file separately). Any loss above that limit carries forward to later years.

Selling at a loss is more common than many people expect. Metal prices can fall and stay flat for years, and you also lose the premium and the dealer's spread (the gap between the dealer's selling and buying prices) on every round trip.

How do I report a sale of gold or silver?

You report each sale on Form 8949, then carry the totals to Schedule D of your Form 1040. That is the same path as stock sales, with two extra steps for collectibles.

On Form 8949. The Form 8949 instructions say that if "you disposed of collectibles," you enter code C in column (f). You list the description (for example, "10 American Silver Eagles"), the dates you bought and sold, the sale price and your cost basis.

Most dealers don't send a Form 1099-B for common coins (see do gold dealers report your sales to the IRS). On the 2025 form, a sale with no 1099-B goes in Part I with box C checked if it was short-term, or Part II with box F checked if it was long-term. Box letters can change from year to year, so check the current instructions.

On Schedule D. Long-term collectibles gains go through the "28% Rate Gain Worksheet" in the Schedule D instructions (it is tied to line 18). That worksheet is how the higher collectibles rate is applied. Tax software usually fills it in once you mark the sale as a collectible.

What records should I keep?

Keep enough to prove what you paid and what you received. Without records, it is hard to show your basis, and you could end up paying tax on more than your real gain.

• Purchase invoices. Date, dealer, item, quantity, price per piece, premium, shipping, insurance and sales tax.
• Payment proof. Bank, card or check records that match each invoice.
• Sale confirmations. Date, buyer, item, quantity and the amount paid to you.
• A simple list. One line per purchase, so you can see which pieces you still own and which you sold.
• For inherited or gifted metal. Any appraisal, estate paperwork or price record from the date you received it.

Store copies away from the metal itself. A fire or theft that takes your coins should not also take the paperwork. Our page on storing gold and silver at home has tips on keeping a written list and photos.

How is inherited gold taxed?

Inherited metal usually has a different starting point. IRS Publication 551 says the basis of inherited property is generally "the FMV of the property at the date of the individual's death," where FMV means fair market value. In some cases the estate can choose a later valuation date instead. In practice, the gain the original owner built up is generally not taxed when you sell, only any rise after that date. The collectibles rules still apply to that later gain. Getting a written valuation close to the date of death makes this much easier to prove. See our guide to inherited gold and silver coins and talk to a tax professional about your case.

What about gold ETFs and other "paper" gold?

The IRS pages we checked don't address gold ETFs (exchange-traded funds) directly, so we won't state a rule here. Some fund sponsors say their shares are taxed like the metal itself. Ask a tax professional, and see our comparison of physical gold vs. a gold ETF.

Is it different inside an IRA?

Yes. Gold held in an IRA follows IRA rules, not the collectibles rules on this page, and our sister site explains how tax works when the metal is in an IRA.

What gold and silver can't do for your taxes

Physical metal has no tax advantages when you own it yourself. It pays no interest or dividends, so there is no income to report while you hold it, but there is also no income at all. When you sell, the top long-term rate can be higher than on stocks. You also pay a premium to buy, a spread to sell, and often storage and insurance costs along the way. Prices can also fall or stay flat for long stretches, so there may be no gain to tax, or a loss.

Before you sell, it helps to get a few buyback quotes and to know your basis. Our guide on how to sell gold and silver for a fair price covers the selling side, and our page on sales tax on gold and silver covers the tax some states charge when you buy.