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| Above, 1964 Kennedy Half dollars. Photo by Armand Vaquer. |
With silver rising in the spot price market, collectors and investors have to be mindful of what the Internal Revenue Service wants during tax reporting time.
Economic Times posted an article how to reduce one's tax burden on precious metals.
They posted:
IRS tax rules for silver and gold:
Silver’s surge past $90 an ounce has grabbed attention as gold climbed toward $5,300 in 2025 and 2026. Demand tied to the green economy, including heavy silver use in high-efficiency solar panels and the fact that EVs require roughly twice as much silver as gas-powered cars, has helped drive the rally, as per a report.
How the IRS Taxes Silver and Other Precious Metals: The 28% Collectible Tax Rule Explained
But taxes can take a large share of those profits. The IRS treats physical precious metals differently from stocks, and profits may be taxed at rates of up to 28% or more.
Silver is a capital asset, meaning any profit from selling it must be reported on Schedule D of your federal tax return, as per the Yahoo Finance report.
Many investors assume holding silver for more than a year qualifies for the same long-term capital gains rates as stocks. However, the IRS classifies physical metals such as silver bars, rounds, and coins as collectibles.
If silver is held for one year or less, profits are taxed as ordinary income, which can be as high as 37% depending on your tax bracket.
If it’s held longer than a year, the gain is still taxed at your ordinary income rate but capped at 28%.
The article then goes on to tell how the tax burden can be reduced.
To read the full article, go here.