Lesson · Facts First
Precious Metals
Metals are insurance, not an engine - sized correctly they steady a portfolio; oversized they tax you for holding.
The facts
- 01Physical gold, silver, and platinum held directly are taxed as collectibles at a maximum 28% long-term rate - higher than the standard long-term capital gains rate (IRC 408(m) definition; IRC 1(h) rates).
- 02The workaround is a metals ETF or a qualifying IRA-held trust arrangement - different wrapper, different rate; know what you hold.
- 03IRA rules: only certain bullion coins and bars meeting fineness standards qualify; collectible coins inside an IRA are prohibited transactions.
- 04A common allocation for the insurance role is in the low single digits of a portfolio - enough to matter in a crisis, not enough to drag compounding.
Sources
- IRC Sections 408(m), 1(h)
- IRS: Retirement Plans FAQs on collectibles
Educational content only — not tax, legal, investment, or VA-benefits advice. Figures verified against the cited sources for 2026; confirm your own situation with a qualified professional before acting.
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