{"id":38161,"date":"2025-11-16T14:34:07","date_gmt":"2025-11-16T14:34:07","guid":{"rendered":"https:\/\/financialrush.com\/?p=38161"},"modified":"2025-11-16T14:34:07","modified_gmt":"2025-11-16T14:34:07","slug":"what-investors-need-to-know","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=38161","title":{"rendered":"What investors need to know"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108220962\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Gold\u00a0traded below the $4,000-per-ounce mark again on Tuesday as the dollar remained resilient at over three-month highs, while reduced chances of another U.S. interest rate cut in December and easing U.S.-China trade tensions blunted bullion&#8217;s demand.<\/p>\n<p>Bloomberg | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Gold profits are glittering in 2025 \u2014 but cashing in may <a href=\"https:\/\/www.cnbc.com\/2022\/03\/14\/gold-silver-etf-owners-face-28-percent-top-tax-rate-on-capital-gains.html\">trigger a bigger tax bill<\/a> than you might think.<\/p>\n<p>The price of <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-2\"><a href=\"https:\/\/www.cnbc.com\/quotes\/@GC.1\/\">gold futures<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> hit $4,000 per ounce in October, for the <a href=\"https:\/\/www.cnbc.com\/2025\/10\/07\/gold-4000-record.html\">first time ever<\/a>. While the precious metal <a href=\"https:\/\/www.cnbc.com\/2025\/11\/14\/gold-falls-as-fed-cut-hopes-fade-after-hawkish-fed-comments.html\">dropped in price<\/a> on Friday as part of a broader market decline, year-to-date returns still sat at nearly 50%, with a price around $4,100.<\/p>\n<p>Exchange-traded funds backed by physical gold \u2014 like SPDR Gold Shares (<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-5\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GLD\/\">GLD<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>), iShares Gold Trust (<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-6\"><a href=\"https:\/\/www.cnbc.com\/quotes\/IAU\/\">IAU<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>), and abrdn Physical Gold Shares ETF (<span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-7\"><a href=\"https:\/\/www.cnbc.com\/quotes\/SGOL\/\">SGOL<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>) \u2014 are up by a similar amount.<\/p>\n<p>By comparison, the S&amp;P 500 U.S. stock index is up about 15% in 2025, as of Friday&#8217;s close. \u00a0<\/p>\n<p>Heady returns in 2025 follow a year in which gold recorded its best annual performance since 2010, about 26%, <a href=\"https:\/\/www.gold.org\/goldhub\/gold-focus\/2025\/01\/golds-2024-performance-best-14-years\" target=\"_blank\">according<\/a> to the World Gold Council.<\/p>\n<p>But investment profits from physical gold and funds that track gold are taxed differently from those of traditional assets like stocks and bonds, according to tax experts.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"SpecialReportArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 id=\"more-from-cnbcs-financial-advisor-100\" class=\"RelatedContent-header\">More from CNBC&#8217;s Financial Advisor 100:<\/h2>\n<div class=\"group\">\n<p><em>Here&#8217;s a look at more coverage of CNBC&#8217;s Financial Advisor 100 list of top financial advisory firms for 2025:<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The upshot is that investors \u2014 especially those in the top tax brackets \u2014 may pay a higher federal tax rate on gold profits relative to assets like stocks and bonds.<\/p>\n<p>That could leave gold investors with a surprise tax bill.<\/p>\n<p>&#8220;I&#8217;ve seen missteps quite a few times, especially this year with the run that gold has had,&#8221; said Tommy Lucas, a certified financial planner and enrolled agent at <a href=\"https:\/\/www.cnbc.com\/2025\/10\/01\/moisand-fitzgerald-tamayo-financial-advisor-100.html\">Moisand Fitzgerald Tamayo<\/a>, which was No. 69 on the CNBC&#8217;s <a href=\"https:\/\/www.cnbc.com\/2025\/10\/01\/best-financial-advisors.html\">Financial Advisor 100<\/a> list for 2025.<\/p>\n<\/div>\n<h2 id=\"not-all-gold-etfs-are-taxed-the-same\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>Not all gold ETFs are taxed the same<\/h2>\n<div class=\"group\">\n<p>&#8220;Long-term&#8221; tax rates on investment profits \u2014 known as <a href=\"https:\/\/www.cnbc.com\/2025\/10\/09\/capital-gains-tax-2026-federal.html\">capital gains<\/a> \u2014 are preferential relative to the marginal income tax rates that investors might pay on wages and other income, for example.<\/p>\n<p>For example, the top federal rate on <a href=\"https:\/\/www.cnbc.com\/2025\/10\/14\/capital-gains-taxes-2026.html\">long-term capital gains<\/a>, 20%, is lower than the top <a href=\"https:\/\/www.cnbc.com\/2025\/10\/09\/2026-federal-tax-brackets.html\">marginal income tax rate<\/a>, 37%.<\/p>\n<p>Long-term capital gains rates apply when an investor has owned an asset for more than one year.<\/p>\n<p>However, physical gold and funds backed by physical gold are <a href=\"https:\/\/www.cnbc.com\/2023\/03\/22\/how-are-nfts-taxed-the-irs-plan.html\">treated as collectibles<\/a> for tax purposes \u2014 and collectibles <a href=\"https:\/\/www.cnbc.com\/2023\/08\/21\/gold-coins-meteorites-and-cash-how-found-property-is-taxed.html\">have a top 28% rate<\/a> on long-term capital gains.<\/p>\n<p>&#8220;There&#8217;s no getting around that [collectibles rate] just because it&#8217;s held in an ETF wrapper,&#8221; Lucas said.<\/p>\n<p>This also applies to other precious metals like silver.<\/p>\n<\/div>\n<div class=\"group\">\n<p>Funds that hold gold futures contracts \u2014 instead of physical gold \u2014 have yet a different tax structure, with a top federal tax rate of 26.8%, said Jeffrey Levine, a certified public accountant and certified financial planner based in St. Louis.<\/p>\n<p>&#8220;Just because you have a gold ETF doesn&#8217;t mean it&#8217;s going to be taxed exactly the same,&#8221; said Levine, the chief planning officer at Focus Partners Wealth.<\/p>\n<p>In both cases \u2014 collectible and futures \u2014 investors in the top tax bracket would pay a higher rate on long-term profits than a traditional asset like a stock, he said.<\/p>\n<p>Of course, this tax discussion only applies to gold held in a taxable brokerage account and sold for a profit. It doesn&#8217;t apply to investors who hold gold ETFs in a tax-preferred retirement account, like an IRA.<\/p>\n<\/div>\n<h2 id=\"breaking-down-tax-on-collectibles-and-futures\" class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>Breaking down tax on collectibles and futures<\/h2>\n<div class=\"group\">\n<p>There are three long-term capital-gains rates: 0%, 15% and 20%, depending on an investor&#8217;s annual income.<\/p>\n<p>Short-term capital gains, which apply to assets held for a year or less, are different. Profit on such sales is taxed at ordinary income tax rates, like those that apply to wages, for example. There are\u00a0<a href=\"https:\/\/www.cnbc.com\/2022\/10\/19\/irs-here-are-the-new-income-tax-brackets-for-2023.html\">seven marginal tax rates<\/a>, ranging from 10% up to 37%.<\/p>\n<p>Collectibles are taxed like short-term capital gains but are capped at 28%. That means an investor in the 32%, 35% or 37% income tax brackets wouldn&#8217;t own more than 28% in long-term capital gains on collectibles profits.<\/p>\n<\/div>\n<blockquote data-test=\"Pullquote\">\n<div class=\"Pullquote-pullquote\" style=\"border-top-color:#231f20\">\n<div>\n<p>I&#8217;ve seen missteps quite a few times, especially this year with the run that gold has had.<\/p>\n<div class=\"Pullquote-sourceWrapper\">\n<p>Tommy Lucas<\/p>\n<p>certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n<div class=\"group\">\n<p>Meanwhile, capital gains for futures contracts are assessed based on a 60\/40 tax structure, said Levine. That is, 60% of their profits are taxed as long-term capital gains, and the remaining 40% as short-term capital gains.<\/p>\n<p>In the case of gold futures funds, here&#8217;s how the math works for someone in the top tax bracket: 60% of 20%, which is the top long-term rate for capital gains, is 12%; and 40% of 37%, the top marginal income tax rate, is 14.8%.<\/p>\n<p>Added together, that&#8217;s a top capital-gains rate of 26.8% for gold futures contracts, Levine said.<\/p>\n<p>While some higher-income investors might think it&#8217;s a better idea from a tax perspective to buy gold futures funds, there are also downsides, he said.<\/p>\n<p>For example, such investors would get a <a href=\"https:\/\/www.cnbc.com\/2025\/01\/29\/tax-return-audit-key-tax-forms.html\">K-1 tax form<\/a> since the funds are often structured as partnerships, Levine said. That could make it more challenging and costly to file an annual tax return, he said.<\/p>\n<\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2025\/11\/16\/gold-capital-gains-taxes.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Gold\u00a0traded below the $4,000-per-ounce mark again on Tuesday as the dollar remained resilient at over three-month highs, while&hellip;\n","protected":false},"author":3,"featured_media":38162,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-38161","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/38161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38161"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/38161\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/38162"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}