@fanfare wrote:GLD ETF traded for short term swings or day trades is not a collectible.
@M-MTax
WHO CARES? If the ETF (GLD) or bullion is held short-term (a year or less), then it makes no difference since the 28% max rate for collectibles no longer applies. Any gain is taxed at your marginal tax rate with no 28% limit (as there is for a collectible).
Here's the deal: Section 408(m)(2) says that any metal is a collectible while Section 408(m)(3)(B) makes an exception for gold, silver, platinum, or palladium bullion (meaning NOT a collectible). HOWEVER, Section 1(h)(5)(A) effectively makes bullion a collectible, without regard to 408(m)(3), for assets held more than one year.
That's it and holding anything that is a "collectible" doesn't really matter a whole heck of a lot unless the dumb thing is held for more than a year. Otherwise, gain is taxed at ordinary income tax rates regardless.
