Gold has spent 2026 near record levels — roughly $4,433 an ounce in early September, about 23% higher than a year ago — and silver has run harder still, more than doubling year to date to around $66. August alone added 10.5% to gold and 14.9% to silver.
For retirement savers who bought metals years ago as a diversifier, that rally has produced something many never planned for: a large unrealized gain sitting in a taxable account, governed by rules that do not work the way most investors assume.
Metals Are Taxed as Collectibles
Under Internal Revenue Code §408(m), gold, silver, platinum and palladium are classified as collectibles. IRS Topic No. 409 states it plainly: "Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate."
That sits well above the 0%, 15% and 20% long-term rates that apply to stocks and ordinary funds. Two clarifications matter:
- 28% is a ceiling, not a flat rate. If your ordinary bracket is lower, you pay the lower rate.
- Metal held a year or less doesn't qualify at all. Short-term gains are taxed as ordinary income — up to 37%.
Higher earners may also owe the 3.8% net investment income tax. Per IRS Topic No. 559, the NIIT applies above modified AGI of $200,000 for single filers and $250,000 for married filing jointly, lifting the top federal rate on metals to 31.8% before any state tax.
The Coin Exception Most Investors Misread
Here is the trap. Section 408(m)(3) carves out American Gold and Silver Eagles, certain other coins, and bullion meeting fineness standards — which is exactly why a self-directed IRA can legally hold them.
Many investors conclude those coins therefore escape the 28% rate. They don't. Even a 2026 article in an advisor trade publication stated that Eagles qualify for standard capital gains rates — and that is incorrect.
The rate is set by a different statute. Section 1(h)(5)(A) defines a collectible gain as gain from a collectible "as defined in section 408(m) without regard to paragraph (3) thereof." That phrase deliberately switches the coin exception off. The exception exists so your IRA can hold the coin; it does nothing for your tax rate when you sell that coin in a brokerage or home safe.
ETFs Carry the Same Rate
Physically backed metal ETFs — GLD, IAU, SLV, SGOL — are generally structured as grantor trusts. Shareholders are treated as owning a pro-rata slice of the underlying bullion, so selling shares is treated as selling metal: 28%, not 20%. These trusts also sell small amounts of bullion to cover expenses, which can generate reportable gain you never initiated.
No Tax Form Doesn't Mean No Tax
Dealers must file Form 1099-B only on specific transactions — 25 or more Maple Leafs or Krugerrands, silver bars of 1,000+ troy ounces, or pre-1965 junk silver above $1,000 face value. American Eagles are not reportable at any quantity. But reporting thresholds and taxability are separate questions: the gain is owed whether or not a form arrives.
Practical Takeaways
- Prefer the IRA wrapper. Inside a traditional or Roth IRA, the collectibles rate never applies on the way out.
- Keep basis records. Purchase receipts, dates, and premiums paid determine the gain — reconstructing them years later is painful.
- Mind the one-year line before selling into a rally.
- Net losses against gains. Collectible losses offset collectible gains in the same netting bucket.
- Ask about state tax, which stacks on top of the federal rate.
None of this is a reason to avoid metals. It is a reason to decide deliberately which account holds them.
Sources: IRS Topic No. 409; IRS Topic No. 559; 26 U.S.C. § 1 and § 408 (Cornell Legal Information Institute); The Tax Adviser, "The taxation of collectibles"; JM Bullion; Trading Economics.