News You Can Use: Selling Your Gold and Valuables

Created on Tuesday, 09 August 2011 07:02

Written by Billy Thomas

With all the debt discussions and economic uncertainty of recent, demand for precious metals has seen a major increase.  With any rise in demand there is often a similar rise in price further emphasized by the value of gold, which has risen to record levels on a global scale.  There are many reasons to hold and/or invest in gold including preserving one’s wealth, fighting against inflation, and maintaining a level of diversification just to name a few among the many other reasons to invest in this precious metal. 

You can, also, own gold in a variety of ways such as purchasing gold coins, bullion, jewelry, even through a futures market and exchange-traded funds (ETFs).  It is important to remember the IRS classifies gold as a capital asset and more specifically as a collectible.  A collectible is defined by the IRS, in regards to capital gains and losses, as art, rugs, antiques, metal, gems, stamps, and coins.  When sold, net collectible gains are subject to a HIGHER tax rate of 28%, if held for more than one year rather than the current long term capital gain tax rate of 15% for other capital assets.  

Just remember the IRS considers collectible gains (held for more than one year) to be subject to the 28% tax rate the next time you sell some of your valuables, artwork, and precious metals.