In the US, selling gold or silver for more than you paid is generally a taxable capital gain — here's how it works, and when a dealer actually reports a sale.
Published October 5, 2026
This is general information, not tax advice — but the short answer for US sellers is yes: if you sell gold or silver for more than your cost basis, that gain is generally taxable, whether it’s bullion you bought, a coin you inherited, or scrap jewelry you’re cashing in. What varies is the tax rate and whether the sale gets reported to the IRS by the buyer.
Physical gold, silver, platinum, and palladium are classified as collectibles for tax purposes — the same category as art or antiques, not stocks. Gains on collectibles held longer than a year are taxed at a maximum federal rate of 28%, rather than the lower long-term capital gains rates that apply to most investments. Gains on anything held a year or less are taxed as ordinary income at your regular tax rate.
Your taxable gain is the sale price minus your cost basis — what you originally paid, or for inherited items, generally the fair market value on the date you inherited them. For scrap jewelry you’ve simply owned and worn, establishing an exact basis can be impractical; a tax professional can advise on how to document this for your situation. Either way, the melt value shown by the Gold Calculator or Silver Calculator is a useful reference for what you actually received in a sale, which you’ll need regardless of basis.
Most individual sales of jewelry or a handful of coins are not reported by the buyer at all. Dealer reporting (via Form 1099-B) generally only applies to specific bullion products sold in specific minimum quantities set by IRS rules — for example, certain large sales of gold or silver bars or particular bulk coin quantities. A reporting threshold not being met does not make a gain tax-exempt; you’re still required to report taxable gains on your own return either way.
Selling for less than or equal to your cost basis — common with scrap jewelry sold below what you or a gift-giver originally paid for it retail — doesn’t create a taxable gain. There’s also no tax simply for owning gold or silver, or for having it appraised; the tax question only arises at the point of sale. For the practical side of getting a fair price once you’ve decided to sell, see How to Sell Scrap Gold Safely.
Generally, your cost basis is the item's fair market value on the date you inherited it, and you'd owe tax only on gains above that basis. A tax professional can help confirm the correct basis for your specific situation.
No. Most jewelry and small coin sales aren't reported by the dealer at all. Reporting requirements (Form 1099-B) generally apply only to specific bullion products sold in specific minimum quantities.
Not reporting a sale is not the same as it being tax-free — you're still required to report any taxable gain on your tax return regardless of whether the buyer files a 1099-B.
The IRS treats physical precious metals as collectibles. Gains on items held over a year are taxed at a maximum 28% federal rate; gains on items held a year or less are taxed as ordinary income.