The Real Cost of Owning Gold

By Lewis Braham - 2012-09-27T20:30:53Z

Photograph by Craig Aurness/Corbis

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Taxes on Gold

Unlike stock capital gains, which are taxed at a maximum rate of 15 percent for long-term investors, profits on gold investments are taxed at a maximum 28 percent rate, as collectibles. However, if you are in the lower 10 percent, 15 percent, or 25 percent income tax brackets, your net long-term gains from gold are taxed the same as your income. One thing to consider is that gold stocks may offer better value for taxable investors; they are subject to the lower 15 percent capital gains rate.