The IRS considers precious metals a “collectible” for income tax purposes.
Gains on collectibles held for less than one year are taxed as ordinary income - the same tax treatment as short-term capital gains.
Gains on collectibles that are held for more than one year are treated as long-term and taxed at a maximum rate of 28%.
So if you are in a federal tax bracket of 28% or greater, your net long-term gains from collectibles are taxed at 28%.
If you are in a federal tax bracket lower than 28%, your net long-term gains from collectibles are taxed at your regular rate.
The “collectibles” designation includes most forms of investment grade gold and silver.
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