Tax Implications of Selling Precious Metals

How much gold or silver can I sell without reporting

Many individuals don’t realize the tax implications when selling precious metals. Under general guidelines, any dealer selling bullion products over $10,000 must report it to the IRS.

Investors need to understand these requirements so they can make sound investment decisions. Speak to an experienced financial professional for more specific guidance tailored specifically for you.

How much can I buy?

Short version: Precious metal dealers are mandated by the IRS to report sales that meet their “reportable items list.” This may include coins and bullion sold exceeding certain amounts.

Reporting only applies to precious metal purchases paid in cash exceeding $10,000; dealers must also report transactions involving multiple bankwire payments totalling more than $10,000 that have a combined total exceeding this threshold amount, in order to prevent money laundering or any illegal activities that might take place during their transactions. These regulations aim at combatting money laundering or any illegal activities taking place during them.

No doubt many are confused when hearing of cash reporting and 8300 forms; however, most concerns about them are unwarranted. Most reputable coin dealers won’t require you to pay with cash or make multiple payments over several days in order to bypass these requirements. Customers should consult a tax professional for further advice based on their individual circumstances; an expert tax professional will have access to state and federal laws which may affect them directly.

How much can I sell?

IRS expects you to report capital gains when selling bullion investments for more than they were appraised at when you originally bought them, just as dealers must also report financial gains when selling customer investments to them, to the IRS via 1099-B forms.

Dealers of gold and silver must report the total sales value through 8300 forms to combat money laundering and other illegal activities. You may be exempt from completing these forms if your transactions only involve different bullion items.

Example: If you purchase $9,000 dollars worth of American Eagle coins one week and sell them the following week for the same price, your dealer won’t need to report either transaction to the IRS. On the other hand, if you buy 100 ounce silver bars and sell them both weeks later – then this must be reported accordingly.

Tax implications

Purchase and sale of physical precious metal bullion products can provide investors with an additional source of passive income, but it’s essential that they fully comprehend any tax repercussions associated with their transactions. It is wise to consult a tax expert in order to receive up-to-date and accurate advice specific to their own individual circumstances.

In general, the IRS considers precious metals such as gold to be collectibles and taxes any gains realized upon sale. Capital gains are calculated by subtracting an item’s sale price from its cost basis.

Legally required reporting requirements for most bullion dealers include any sales totalling more than $10,000 USD in cash payments to combat money laundering and other illicit activities. Most coin dealers tend to discourage large cash payments in favor of accepting funds via bank wire, cashier’s check or money order instead. Sales of privately minted 100 ounce silver bars and American Gold Eagles of any quantity also need to be reported.


Old reporting rules were intended to combat money laundering and smuggling; however, their current implementation is seen by both dealers and investors as an invasion of privacy and big brother-esque attempt at tracking precious metal purchases. Many investors avoid investing in popular bullion products to avoid “reportable” sales transactions.

Gold and silver bullion products purchased with cash are now exempt from reporting requirements if purchased under $10,000 cash reporting threshold, such as the 1-oz American Gold Eagle or other popular coins. Smaller 1-oz Krugerrands or Mexican Onzas must still be reported.

We strive to educate our clients on the tax implications associated with their precious metals transactions and help them make informed decisions. Don’t hesitate to reach out with any queries that arise; we would be more than happy to assist!

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