Can You Sell Gold and Silver Without Reporting to the IRS?

If you've locked in a profit on gold or silver, there's a question you've probably thought about: Do I really have to report it to the IRS?

Not should you… but do you actually have to?

Because if you spend any time online, you'll hear all kinds of answers like:

• Silver Eagles are exempt.
•  Just stay under certain amounts.
• No 1099 means no tax.
• Cash deals, no paper trail.

And I’ll be honest with you, a lot of smart, independent people believe some of those things.

So in this blog post, I want to show you what the IRS actually says, what it does not say, and where reality and the tax code don’t always line up… because there’s a big difference between:

• what the law requires
• what gets automatically reported
• and what people think is a loophole

As a tax professional, my job isn’t to tell clients what they can get away with. It’s to explain the rules clearly, explain the risks honestly, and let adults make their own decisions.

If you own physical gold or silver — especially if you’ve got real gains — this is one of those topics where bad information can end up costing you.

Hi, my name is Noel Lorenzana. I’m a CPA, but I’m not your CPA. This blog post is for general education purposes only, not personalized tax advice. Always talk to your own tax professional about your specific situation.

How the IRS Actually Classifies Gold and Silver

Let’s start with how the IRS actually looks at gold and silver.

The IRS doesn’t see physical gold and silver the same way it views stocks, ETFs, or real estate. And that surprises a lot of people.

For tax purposes, physical precious metals fall into a category called collectibles.

Collectibles include things like:

• art
• antiques
• stamps
• certain coins
• and yes… physical gold and silver

And that classification matters a lot. Because when an asset is treated as a collectible, it doesn’t get the same tax treatment as other investments.

With stocks or real estate, if you hold them longer than a year, most people pay long-term capital gains rates of:

• 0%
• 15%
• or 20%
  (depending on income)

With collectibles, the IRS allows a higher maximum tax rate — up to 28% on long-term gains.

Now let me be very clear here because this gets misstated all the time: That does not mean everyone automatically pays 28%. It means your gain is taxed at your capital gains rate, but capped at 28% since it’s a collectible.

If you’re in a lower tax bracket, then you may pay less. The 28% rate isn’t automatic.

You pay your normal long-term capital gains rate, but unlike stocks, the rate can go as high as 28% instead of capping out at 20%.

Now, if you sell gold or silver that you’ve held one year or less, that’s even simpler: That gain is taxed as ordinary income, just like wages from your job. No special tax treatment at all.

So right out of the gate, before we even talk about reporting or enforcement, physical precious metals start at a disadvantage from a tax perspective.

That’s just how the IRS classifies them.

And once you understand that, a lot of the confusion starts to become clear… because most of the “loophole talk” doesn’t change this classification at all. No specific coins. No bar size. No transaction amount.

Under current law, gains on physical gold and silver are taxable. Which brings us to the next big question:

If it’s taxable… how does the IRS even know you sold it?

That’s where Form 1099-B comes in.

Form 1099-B and the Big Confusion

This is where most of the confusion starts. People hear about Form 1099-B, and they make assumptions.

If the IRS doesn’t get a form — which means you didn’t get one either — do you still have to report the sale?

Let’s clear that up.

Form 1099-B is typically used to report stock sales. But here’s the key point: Form 1099-B is not just about your tax obligation. It’s about a dealer’s reporting obligation.

That distinction matters more than anything else in this entire conversation.

A 1099-B is filed by brokers, dealers, and certain intermediaries to tell the IRS: “Hey, this transaction happened.” Here’s who sold, what they sold, and what the gross proceeds were.

When that form gets filed, the IRS has third-party confirmation the sale occurred. When it doesn’t get filed, there’s no automatic paper trail — and that’s where people jump to the wrong conclusion.

Not receiving a Form 1099-B does not mean the sale is tax-free. It doesn’t mean the gain isn’t reportable. It doesn’t mean reporting is optional. It only means there was no third-party information return sent to the IRS.

Our tax system is built on voluntary reporting.

You are legally required to report taxable income whether or not you receive a tax form.

What the IRS Actually Says About 1099-B Precious Metals Reporting

Now if you research online, this is where things can get even more confusing. You might see blog posts, charts, lists, and very confident claims about:

• exempt coins
• safe sale amounts
• “stay under this number” strategies

So I went straight to the source. I pulled the actual IRS 1099-B instructions — the same document dealers are supposed to use. And what the IRS actually talks about there isn’t privacy or coin type.

It talks about regulated futures contracts.

In plain English, the IRS says:

A precious metal sale is generally only reportable by a dealer if:

1. it involves a metal that trades on a regulated futures exchange
2. and it involves a quantity large enough to meet the minimum size of a futures contract

That’s it. So if it doesn’t meet those requirements — no 1099-B.

Also, keep in mind: There is no IRS guidance that I could find that says:

• Silver Eagles are exempt
• or that Constitutional 90% silver over $1,000 face value triggers reporting

I couldn’t find that language on the IRS website. What the IRS gives is a technical futures market test for dealers. And the IRS is very clear about one more thing: Sales within a short time window are aggregated. If a dealer knows or has reason to know someone is trying to avoid reporting, the exception doesn’t apply.

That’s straight from the instructions.

So if you hear someone confidently rattling off exact coins, exact ounce amounts, or saying “just stay under this number”… Understand what you’re really hearing: You’re hearing some made-up industry generalizations.

And again — even when no 1099-B is filed: The tax rule doesn’t change. A taxable gain is still a taxable gain.

The Part People Don’t Like to Say Out Loud

Whether you agree with it or not, the U.S. tax system is built on voluntary compliance. The IRS doesn’t monitor every transaction. It relies heavily on third-party reporting and self-reporting. That’s just how the system works.

And physical assets, by their nature, don’t generate the same automatic paper trail that paper assets do. Because of that, there are people who own gold and silver who probably won’t ever report their sales activity. And honestly — I understand why people feel that way.

Some people don’t trust institutions.
Some value privacy above everything else.
Some see physical metal as money or insurance — not an investment.

And yes… there are people who believe that if something isn’t automatically reported, it’s unlikely to ever become an issue.

But here’s another important part: The IRS position doesn’t change because enforcement may be lacking.

The law doesn’t say:

“Report it only if we can see it.”

It says:

“If you have a taxable gain, you are required to report it.”

Whether someone chooses to do that or not — that’s not a tax strategy. That’s a personal decision… that comes with risk. And risk cuts both ways. Most IRS audits don’t start with physical gold or silver.

They start somewhere else entirely:

• a bank inquiry
• an unrelated audit
• or a mismatch between lifestyle and reported income

If and when that happens, the burden doesn’t shift to the IRS. It stays with the taxpayer. Penalties and interest compound. And in the event of fraud, the statute of limitations may not even start running.

Listen — I’m not here to lecture anyone.

I’m just trying to draw the distinction between what the law requires, what gets automatically reported, and what some people choose to do anyway.

Now if your goal is to reduce taxes legally, there are planning tools built into the system. And that’s where we’re going next.

Tax Planning Options That Actually Work

If your goal is to reduce taxes without playing games, this is the part that actually matters. I’m going to keep this high level.

1) Holding Period: This is basic… but it’s amazing how often it gets ignored.

• If you sell physical gold or silver in under one year, the gain is taxed as ordinary income
• Over one year, you get long-term treatment (subject to collectibles rules)

That one timing decision can mean the difference between a reasonable tax bill… and a painful one.

2) Location Matters: Federal tax rules are only half the picture. State taxes can take a big bite.

Some states tax capital gains as ordinary income.
Some don’t tax income at all.
Some tax bullion purchases. Some don’t.

Just keep in mind that once the sale happens — the tax results are locked in.

3) Retirement Accounts: Under current law, certain retirement structures can dramatically change how gains are taxed.

A Roth IRA is the clearest example. When properly structured, a Roth IRA can hold certain types of physical gold and silver.

Here’s how it works:

• You contribute after-tax money
• growth inside the Roth IRA is tax-free
• qualified withdrawals are also tax-free

So even though physical gold and silver are normally treated as collectibles… That classification doesn’t matter when the metal is held inside a properly compliant IRA.

But there are rules.

There are custodians.
There are storage requirements.
There are costs.

Still — from a pure tax perspective — this is one of the few ways to get around the capital gains tax issue with gold and silver.

4) Record Keeping: This is the unsexy part nobody wants to talk about. Cost basis matters. Dates matter. Documentation matters.

If you don’t know:

• what you paid
• when you bought
• or what you sold for

…you’re already in a weak position. Good records don’t just reduce tax. They reduce stress. If you ever need to explain a transaction, memory alone won’t cut it.

And let me be very clear: Planning is not assuming something isn’t taxable just because no form was issued. Planning is not:

• “Everyone does it.”
• “I read it online so it must be true.”
• “The IRS can’t see it anyway.”
  
  

Laws, Reality, and Personal Responsibility

Let me bring this all together. Physical gold and silver occupy a strange place in the tax world. The IRS treats them as collectibles. That means:

• higher potential tax rates
• and less favorable treatment than stocks or real estate

There’s also a lot of confusion around reporting. Form 1099-B is about the dealer’s reporting obligation, not your tax obligation. No form does not mean no tax.

The IRS does not publish a list of exempt coins or safe amounts to avoid reporting the way the internet claims it does.

But correct me if I’m wrong.

At the same time… we all live in the real world. The tax system relies on voluntary compliance.
Enforcement isn’t perfect. Physical assets don’t create the same paper trail. Some people will choose not to report their activity. They’ve already made that decision, and I’m not here to judge that.

But it’s important to understand: The legal obligation does not disappear just because detection is difficult. That’s not tax planning. That’s personal risk tolerance.

If your goal is to reduce taxes within the rules, there are legitimate planning considerations:

• holding periods
• state tax exposure
• retirement structures
• good records

There are also advanced strategies people talk about (like loaning out precious metals instead of selling), but those come with their own risks, so I’ve intentionally left them out of this conversation.

One planning concept that is worth mentioning is Step-Up in Basis at Death. Under current law, when assets like gold and silver are inherited, the cost basis is generally reset to fair market value at the date of death — which can dramatically change the capital gains outcome for heirs.

That’s not a loophole. That’s just how the tax system is written.

As a professional, my job isn’t to tell you what you can get away with. It’s to explain what the IRS actually says, what it doesn’t say, where the myths come from, and where the real risks are. What you do with that information is ultimately your decision.

But if you own physical gold or silver, especially with real gains, you owe it to yourself to understand the rules. That’s the difference between holding assets and managing wealth.

So let me know what you think about reporting your gains on precious metals… Or were they lost in an unfortunate boating accident?

Let me know your thoughts in the comment section of my YouTube video. And if you want to know why we just might be entering a panic phase in silver, then you need to check out my YouTube video here.

Thanks for reading, and I’ll see you there!