Gold & silver: taxes, IRA rules and dealer costs

Thinking about buying gold or silver coins or bars? Three things matter most: what you pay over the metal's value (the dealer's premium), what the dealer will pay you back, and how the gain is taxed, which is at up to 28% because the IRS treats metals as collectibles. Below are the federal rules, the IRA rules, and a quote check that runs on your phone. We don't sell metals, show prices or link to dealers.

Checked Oct. 23, 2026

At a glance

How gold and silver are taxed

• Collectibles rate: net long-term gains from collectibles, “such as coins or art,” are taxed at a maximum 28% rate. If you'd otherwise pay a lower rate, the 28% rate doesn't apply (IRS Topic 409, Pub. 550 Table 4-4).
• American Eagles count too: the law defines collectibles gain using the IRA collectible definition “without regard to” the coin and bullion exception, so IRA-eligible coins and bars are still collectibles for this rate (26 U.S.C. 1(h)(5)).
• Held one year or less: the gain is short-term and taxed as ordinary income.
• Report it: sales go on Form 8949 and Schedule D. Your gain is the sale price minus what you paid, including the premium and fees, so keep your receipts.

Gold and silver in an IRA

• The general rule: if an IRA buys a collectible (“any metal or gem”, “any stamp or coin”), the cost is treated as a distribution from the IRA (26 U.S.C. 408(m)). That can mean income tax and, if you're under 59½, a possible early-withdrawal penalty.
• The exception: American Eagle gold coins (1, ½, ¼ and 1/10 oz), American Eagle silver coins, U.S. platinum coins, coins issued under a state's laws, and gold, silver, platinum or palladium bullion at least as fine as a futures contract market requires for delivery, if the bullion is in the physical possession of the IRA trustee.
• Not at home: the CFTC and FINRA note that metals in a self-directed IRA must be held by the IRA trustee or custodian, which charges for storage and administration.
• The 24-karat Buffalo: the $50 99.99% gold coin is in a different paragraph of the coin law (31 U.S.C. 5112(a)(11)) than the Eagles the IRA exception names; ask your IRA custodian how it treats any coin before buying.

What it really costs

• Spot price: the cash price per troy ounce for immediate delivery. Multiply the weight by spot and compare it with the retail price you're quoted.
• Premium and spread: dealers sell above spot and buy back below it. The CFTC says some fraudulent dealers have charged spreads of more than 300%, while others charge under 20%. The bigger the spread, the more the price has to rise before you make money.
• Bullion vs collectible coins: bullion usually sells for spot plus 5% to 10%; collectible (numismatic) coins are often pitched at 40% to 200% over spot and can be hard to sell (CFTC advisory).
• Other costs: storage, insurance, shipping and, in an IRA, custodian fees. In one complaint the CFTC describes, a dealer and IRA custodian took nearly $150,000 in commissions and fees from a $300,000 rollover.
• No yield: physical metal pays no interest or dividends.

Red flags (CFTC and FINRA)

• Pressure to move retirement savings into a gold or silver IRA, especially by an “IRA expert” who isn't a registered adviser.
• Fees, the retail price or the buy-back price not available in writing before you pay.
• Pushing collectible or “rare” coins over bullion, or promises that prices only go up.
• Free metal or big giveaways, or buying on borrowed money with a small down payment.
• Storage you can't verify. Check your IRA statement against the weight you paid for.

Check whether a salesperson is registered with FINRA BrokerCheck, the NFA's BASIC search or your state securities regulator, as the CFTC suggests. Not sure about a call or text? Try our scam red-flag check.

What dealers report

• Form 1099-B: a dealer's purchase from you is reportable only if the CFTC has approved that form of metal for a regulated futures contract and the quantity meets the contract minimum. The IRS's example: selling a single gold coin isn't reported if all approved gold-coin contracts call for at least 25 coins. A customer's sales within 24 hours are added together (Form 1099-B instructions).
• Form 8300: a business that receives more than $10,000 in cash in one deal (or related payments within a year) reports it (IRS Form 8300 guide).
• Not getting a form doesn't change what you owe; you still report the sale.

What's in an American Eagle (by law)

Weights and gold content from 31 U.S.C. 5112(a)(7)-(10) and (e); gold share = troy ounces × 31.10348 g (NIST) ÷ coin weight. A 1-ounce gold Eagle holds a full ounce of gold; the rest of its weight is other metal that makes it harder.

Gold vs inflation-protected savings

If your goal is protecting cash from inflation, compare: I bonds (U.S. government-backed, rate adjusts with inflation) and Treasury rates. Gold and silver have no government guarantee and can fall in price. See what past inflation did with the inflation calculator.

Facts, not investment or tax advice. We republish IRS, CFTC and U.S. Code facts with dates and do the arithmetic. No dealers, prices or partner links on this page.

Sources & as-of dates

• IRS Topic 409: Capital gains and losses (28% maximum rate on collectibles; 1-year holding rule; checked 2026-10-23)
• IRS Publication 550 (Table 4-4, maximum capital gain rates) (28% rate gain; lower rate if your bracket is lower; checked 2026-10-23)
• 26 U.S.C. 1(h)(4)-(5): 28-percent rate gain and collectibles gain (statute; checked 2026-10-23)
• 26 U.S.C. 408(m): IRAs and collectibles (coin and bullion exception) (statute; checked 2026-10-23)
• 31 U.S.C. 5112: American Eagle and Buffalo coin specifications (statute; checked 2026-10-23)
• IRS Instructions for Form 1099-B (Sales of precious metals) (dealer reporting rule; checked 2026-10-23)
• IRS Form 8300 reference guide (cash over $10,000; checked 2026-10-23)
• CFTC & FINRA: 10 Things to Ask Before Buying Physical Gold, Silver, or Other Metals (spread, fees, buy-back, storage; checked 2026-10-23)
• CFTC: Beware of Gold and Silver Schemes Designed to Drain Your Retirement Savings (bullion vs collectible premiums; checked 2026-10-23)
• NIST SP 811 Appendix B.9 (troy ounce = 31.10348 g) (unit conversion; checked 2026-10-23)