In the U.S., profits from selling physical gold and silver are generally capital gains. Long-term gains on collectibles can be taxed at a maximum 28% federal rate, while short-term gains are generally taxed as ordinary income. State rules and your own facts can change the result.
The federal baseline
The IRS says net capital gains from collectibles such as coins can be taxed at a maximum 28% rate. Physical precious metals are commonly treated under collectible rules.
If you held the metal for one year or less, gains are generally short-term capital gains and flow through ordinary income rules.
Basis matters
Your taxable gain is not the sale price. It is generally sale proceeds minus your cost basis and selling costs.
Keep purchase receipts, order confirmations, shipping records, assay documentation, and sale confirmations. This matters more if you buy from several places over time.
IRAs and retirement accounts
Some coins and metals have special treatment in individually directed qualified plans and IRAs, but the rules are narrow.
Do not assume a random home-stored bar qualifies for tax-advantaged retirement treatment. Use a qualified tax professional for IRA metals questions.
Common questions
Is the 28% collectibles rate a flat tax?
No. It is commonly described as a maximum federal rate for long-term collectibles gains. Your actual tax depends on your income, holding period, losses, state taxes, and other facts.
Do I owe tax if I sell gold at a loss?
A loss on investment metal may be a capital loss, but personal-use losses are generally different. Keep records and ask a tax professional for your specific case.
Is this tax advice?
No. This is not tax advice. This page is a general educational overview for U.S. readers. Tax law changes and facts matter, so use a qualified tax professional.