In the US, selling gold, silver, coins or bullion for more than your cost basis is usually a taxable capital gain, and the IRS treats these as collectibles with a maximum 28% rate on long-term gains. Losses on jewelry you wore usually aren't deductible. This is general information, not tax advice.
The short version
This page covers US federal income tax basics only. It is not tax advice. Rules can change, state taxes vary, and your situation may be different. Check the IRS pages listed at the end or ask a tax professional.
In general, when you sell gold, silver, coins or bullion:
- If you sell for more than you paid, the difference is usually a capital gain, and it may be taxable.
- If you sell for less than you paid, you have a loss. Whether you can deduct it depends on what the item was.
Gold is a “collectible” to the IRS
The IRS groups certain items as collectibles. Its instructions for Schedule D list works of art, rugs, antiques, metals (such as gold, silver and platinum bullion), gems, stamps, coins and certain other items.
That matters because of the tax rate. Most long-term gains on things like stocks are taxed at 0%, 15% or 20%. The IRS says net capital gains from selling collectibles are taxed at a maximum 28% rate. Your actual rate depends on your income and the rest of your tax return.
Short-term vs long-term
How long you owned the item matters:
| Held for | Type of gain | How it’s taxed |
|---|---|---|
| One year or less | Short-term | Like ordinary income |
| More than one year | Long-term | Collectibles rate, up to 28% |
The IRS counts from the day after you got the item up to and including the day you sold it.
Your cost basis
Your gain is the sale price minus your cost basis. For something you bought, the basis is generally what you paid. That’s why it helps to keep receipts, invoices and dealer statements.
If you don’t know what you paid, the gain is harder to work out. A tax professional can help you decide what records you can use.
Basis is different for gold you received as a gift or inheritance. See below.
Selling jewelry you wore
Jewelry you bought to wear is personal-use property. The IRS says losses from selling personal-use property aren’t tax deductible. So if you sell a ring for less than you paid, which is common because jewelry prices include design and retail markup, you generally can’t claim that loss.
If you sell it for more than you paid, for example an old piece bought when gold was much cheaper, the gain can still be taxable.
Inherited gold and coins
According to the IRS, the basis of inherited property is generally its fair market value on the date the person died, not what they originally paid. (An estate can sometimes choose a later “alternate valuation date” instead.)
That can make a big difference. If a parent bought coins decades ago and you sell them soon after inheriting them, your taxable gain is usually based only on any rise in value since the date of death. The IRS says gross proceeds from selling inherited property are included in gross income, and you have a taxable gain if you sell for more than your basis.
It helps to record what the gold and coins were worth around the date of death. A dated price list or appraisal can support that. Our price history page shows past gold prices. See also melt value vs collector value, since collector coins may be valued above melt.
For gifts the rules are different. IRS Publication 551 explains them.
How the sale is reported
The IRS says you calculate capital gains and losses on Form 8949 and summarize them on Schedule D (Form 1040). Collectibles gains are worked out on a separate worksheet in the Schedule D instructions.
Whether or not a buyer gives you any tax form, a taxable gain is still yours to report.
Records to keep
- What you paid and when (receipts, invoices, statements)
- For inherited items, the date of death and a value around that date
- What you sold, to whom, when and for how much (keep the buyer’s receipt)
- Weight and purity of each item, which you can check with our gold calculator or coin pages
Quick summary
| Situation | General rule |
|---|---|
| Sold for more than you paid | Usually a taxable gain |
| Held more than a year | Collectibles rate, up to 28% |
| Held a year or less | Taxed like ordinary income |
| Sold worn jewelry at a loss | Loss usually not deductible |
| Inherited gold | Basis is usually value at date of death |
This is general information, not tax or legal advice. For your own situation, check IRS.gov or ask a tax professional.
- IRS Topic no. 409, Capital gains and losses
- IRS Instructions for Schedule D (Form 1040)
- IRS FAQ: Gifts and inheritances
- IRS Publication 551, Basis of Assets
Last reviewed October 31, 2026. This guide is general information, not legal, tax or financial advice.