Gold is taxed as a capital gain, but often at a higher rate (up to 28%) because the IRS classifies physical gold and related ETFs as "collectibles," unlike stocks which have lower rates. Profits from holding gold for over a year are taxed as long-term capital gains, while shorter holding periods incur higher, ordinary income tax rates. Tax implications also vary for gold-backed funds (like futures ETFs) and jewelry, and state sales tax rules differ.
The Canada Revenue Agency (CRA) taxes gold and precious metals as capital assets. 50% of capital gains from selling gold and other metals are taxable at the investor's marginal tax rate.
Gold is taxed at a higher maximum long-term capital gains rate of 28% because the IRS classifies physical gold (bullion, coins) and many related investments (like some ETFs) as "collectibles," a category that also includes art, antiques, and stamps, subjecting them to this special rate instead of the standard 0%, 15%, or 20% for other assets like stocks, notes SmartAsset.com, CNBC, and Investopedia. This 28% rate applies to long-term gains (held over a year) for higher-income taxpayers, while lower-income investors pay their lower ordinary income tax rate on the gain, say MarketWatch and TaxAudit.
Disadvantages of investing in gold include its lack of income generation (no dividends/interest), price volatility, storage/insurance costs for physical gold, potential for scams, higher capital gains taxes on physical bullion, and opportunity costs if it underperforms stocks/bonds, making it a poor standalone investment for income but useful for diversification.
Dealers must report your gold sale to the IRS using Form 1099-B if certain conditions are met. For context, Form 1099-B is used to report proceeds from broker or barter exchanges, including the sale of precious metals in certain situations.
No, we cannot take any direct tax deductions on the investment or purchase of physical or digital gold. Long-term capital gains on gold sales are taxed for gold held for a period of more than 2 years.
Investing in gold through retirement accounts such as individual retirement accounts (IRAs) can be a strategic way to manage capital gains taxes. When you buy gold within these accounts, you're not subject to capital gains taxes on the appreciation of the gold as long as it remains inside the account.
From time to time, customers ask us, can we sell gold to a bank? Though most banks in Canada will accept gold bars. Keep in mind that when it comes to buying and selling gold with a bank, the bank may have fees and rules that are not ideal for your unique situation.
While gold may not be exempt from inheritance tax, it can still be a beneficial way to transfer wealth, as the price of gold can increase over time. This means the inheritance you leave behind could continue to grow long after you are gone.
Gold Bullion
Anyone entering or leaving Canada with cash or certain other monetary instruments worth CAD $10,000 or more must declare this at the border to a CBSA officer, pursuant to Subsection 12(1) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (the “PCTFA”).
Making a cash purchase of over $10,000 when buying gold can also trigger reporting requirements under anti-money laundering laws.
Gold bullion coins must have a purity of at least . 900 and have been minted after 1800 to be exempt. Coins must also be or have been legal tender in their country of origin and be normally sold at a price that does not exceed 180 per cent of the value of the gold contained within the coin.
The Legal Loophole: Owning Gold Through an IRA
Inside this structure, gold's rapid rise does not trigger an immediate tax bill. Gains accrue tax-deferred in a traditional IRA or can be tax-free in a Roth IRA, assuming qualified withdrawals. The IRS taxes the metal only when you take distributions in retirement.
Taxable Gifts: If the total value of gold received from non-relatives exceeds Rs. 50,000 in a financial year, it is taxable as “Income from Other Sources.”
Your gold purchase may not always be reported when you buy it, but the related tax obligations remain. Under IRS rules, gold is classified as a collectible, and any profit you make when you sell it is subject to capital gains tax.
You must report capital gains in the tax year you dispose of gold. If you sell gold in 2025, you report the gain on your 2025 tax return filed in 2026. There's no minimum threshold—all gains must be reported, whether $50 or $50,000. Selling gold for profit obviously triggers reporting requirements.
How much gold do I have to declare? You do not have to declare your gold to anyone when you sell it. For tax purposes, you only have to declare a capital gain to the ATO if you sell a personal use asset for over $10,000, which is rare for most jewellery.
However, no government regulations require the reporting of the purchases of any precious metals, per se. If payment is made by cash greater than $10,000, however, it becomes a “cash reporting transaction.” It is not the gold that the government wants reported but the cash.