To buy investment gold in the US, choose a product (bar or bullion coin), compare the total cost per ounce across several dealers including shipping and payment fees, pay by a traceable method and plan how you will store it. There is no federal sales tax on gold, but state sales tax rules differ, and the IRS treats physical gold as a collectible when you sell at a gain.
Step 1: Decide what you are buying
Investment gold is sold as bars and bullion coins. Bars are usually .999 or .9999 fine and come in sizes from 1 gram to 1 kilogram and larger. Bullion coins are struck by government mints, carry a face value and are recognized by dealers nationwide.
- American Gold Eagle – 22 karat, contains 1 troy ounce of gold in the 1 oz size; struck by the U.S. Mint.
- American Gold Buffalo – .9999 fine (24 karat), 1 oz; struck by the U.S. Mint since 2006.
- Canadian Maple Leaf – .9999 fine, 1 oz; struck by the Royal Canadian Mint.
- Gold bars – from refiners and private mints; usually the lowest premium per ounce in larger sizes.
Collector coins, proofs and graded “rare” coins are priced for their rarity, not just their metal, so they behave differently from bullion.
Step 2: Know the tax basics
These are the general federal rules; your own situation may differ.
- Sales tax: there is no federal sales tax on bullion. Each state sets its own rules, and many states exempt some or all bullion purchases, sometimes only above a minimum order size. Check your state’s department of revenue.
- Tax on gains: the IRS treats physical gold as a collectible. Long-term gains (held more than one year) on collectibles are taxed at a maximum rate of 28%, compared with lower maximum rates on stocks. Short-term gains are taxed as ordinary income.
- Dealer reporting: when you sell certain products in certain quantities, the dealer files Form 1099-B. Commonly cited examples are 25 or more 1 oz Krugerrands or Maple Leafs, or 1 kilo or more of .995+ gold bars in one transaction. Gold Eagles are generally not on the list. Reporting or not, any gain is still taxable.
- Cash purchases: businesses that receive more than $10,000 in cash in one transaction or related transactions must file Form 8300 with the IRS.
Step 3: Compare dealers on the full price
Online dealer prices change throughout the day with the market. For the exact same product, compare:
- Price by payment method – many dealers list a lower “cash/wire” price and a higher card or PayPal price.
- Shipping and insurance – often free above a minimum order.
- Buy-back price – what the dealer pays if you sell back today.
- Minimum order and delivery time.
Examples of US dealers include Hero Bullion, SD Bullion, BGASC, Silver.com, Summit Metals, Gainesville Coins and Texas Precious Metals. You can compare their current prices on our US gold prices page and read dealer details on US bullion dealers.
Step 4: Compare cost per ounce of gold
Because coins and bars contain different amounts of gold, compare the price per ounce of fine gold. An illustrative example (not current prices):
| Product | Fine gold | Example price | Price per oz of gold |
|---|---|---|---|
| 1 oz Gold Eagle | 1.00 oz | $4,300 | $4,300 |
| 1 oz Gold Buffalo | 1.00 oz | $4,250 | $4,250 |
| 1 oz bar | 1.00 oz | $4,150 | $4,150 |
| 10 oz bar | 10.00 oz | $41,000 | $4,100 |
In this example the larger bar costs less per ounce, while the coins cost more but are very easy to recognize and resell in small units. Our gold calculator works out the metal value of any weight and purity.
Step 5: Pay safely and inspect the delivery
- Pay the dealer directly by bank wire, check or a card through the dealer’s own checkout. Avoid sellers who ask for gift cards, crypto or payment to a personal account.
- Larger orders may require ID; dealers have anti-money laundering obligations.
- Keep your invoice. Your purchase price is your cost basis for working out any future gain.
- On delivery, check the packaging seal, the weight, the fineness stamp and the assay card for bars.
Step 6: Choose your storage
Home storage avoids fees, but check whether your homeowner’s or renter’s policy covers bullion and the limit that applies. Bank safe deposit boxes are usually not insured by the FDIC. Private depositories charge an annual storage fee and often insure the holding. If you plan to hold gold in a self-directed IRA, the IRS requires a trustee or custodian to hold it, and only bullion meeting minimum fineness standards (plus the American Eagle, which the law names specifically) is eligible.
Think about selling before you buy
Every purchase ends with a sale, so it helps to plan the exit on day one. Popular bullion coins and bars from well-known refiners are bought back by almost every dealer, usually at a small discount to spot or close to it. Unusual products, damaged packaging or bars without an assay card can be harder to sell and may be bought back at a lower price. Buying several smaller units instead of one large bar also lets you sell part of your holding without selling all of it, at the cost of a higher premium per ounce when you buy.
Common mistakes to avoid
- Comparing dealer prices with the spot price on TV without allowing for premiums.
- Paying by card without noticing the card surcharge.
- Buying high-markup collector coins sold as “investments” by phone marketers.
- Forgetting the buy-back price when judging which dealer is cheapest.
Bottom line
Buying gold in the US means choosing a product, checking your state’s sales tax position, comparing the all-in cost per ounce and the buy-back price, and planning storage. Gains on physical gold are taxed as collectibles. Live dealer prices are on our gold prices page.
Sources: IRS – Topic 409, Capital gains and losses · IRS – Form 8300 · U.S. Mint · World Gold Council
This is general information, not tax or investment advice.
Frequently asked questions
Is there sales tax on gold in the US?
There is no federal sales tax on bullion. Sales tax is set by each state, and many states exempt some or all bullion purchases, sometimes only above a minimum amount.
How are gold profits taxed in the US?
The IRS treats physical gold as a collectible. Long-term gains on collectibles are taxed at a maximum federal rate of 28%; short-term gains are taxed as ordinary income.
Do gold dealers report purchases to the IRS?
Dealers must file Form 8300 for cash payments over $10,000. Form 1099-B applies to certain sales back to a dealer, such as 25 or more 1 oz Krugerrands or Maple Leafs in one transaction.
Which gold coins can go in an IRA?
The American Gold Eagle is named in the law and is eligible. Other coins and bars must meet minimum fineness standards and must be held by an IRA trustee or custodian.
