Any Profits on Gold before the Price Fell?

Bloomberg recently published a great story and reminder about how investors who sold bullion-backed gold exchange traded funds (ETFs) and are sitting on capital gains could be surprised by higher tax rates than equities.

Gold is considered a “collectible” by the IRS, so gains on bullion ETFs held for over a year are taxed at a 28% rate.

Taxpayers pay a maximum rate of 20% on long-term gains for stock ETFs. The higher tax rate for gold ETFs may catch some investors by surprise since the exchange-listed products are bought and sold like individual stocks.

Source:  John Spence, ETF Trends
  
The information contained in this article does not constitute a recommendation, solicitation, or offer by D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

 

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