
- The IRS treats gold and other precious metals as collectibles for tax purposes. The same is true of exchange-traded funds backed by physical gold.
- Collectibles have a 28% top federal tax rate for long-term capital gains. Stocks have a maximum rate of 20%.
- Many investors in popular gold funds — like SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and abrdn Physical Gold Shares ETF (SGOL) — may be surprised to learn they face a higher tax rate.