Gold was first discovered in the Iowa River in Hardin County in 1853. As news of the discovery spread, more than 3,000 people descended on the Eldora area in search of wealth.
To this day, Iowans buy precious metals and invest in gold to protect themselves from economic uncertainties and preserve their wealth. While it is popular to invest in gold, residents also invest in silver, platinum, and palladium as a way to diversify their portfolios.
However, if you're looking to buy gold, invest in silver, or explore other precious metals, make sure you are up to date with federal and state laws. When you’re ready to buy gold online, visit a gold dealer’s website to browse their products and choose gold coins and bars to invest in.
When selling physical gold or other precious metals after holding them for more than a year, investors must pay federal capital gains tax to the IRS. This is because the IRS views investments in precious metals as capital assets that fall under the collectibles category.
The capital gains tax rate will depend on the profit you make from the sale. Depending on your income, the rates range from 0% to 15% to 20%, with a maximum of 28%. The capital gains tax rates for 2023:
|Single||Up to $44,625||$44,626 to $492,300||Over $492,301|
|Head of household||Up to $59,750||$59,751 to $523,050||Over $523,051|
|Married filing jointly||Up to $89,250||$89,251 to $553,850||Over $553,851|
|Married filing separately||Up to $44,625||$44.626 to $276,900||Over $276,901|
The IRS has strict regulations when it comes to the types of assets allowed in a precious metal IRA. So, if you're considering opening one, take into account the following requirements:
According to Iowa law, gold and silver products are exempt from sales taxes, making gold a good investment option. However, investors need to pay sales taxes on copper products, coins that do not qualify as legal tender, accessory items, and processed items.
Accessory items include holders, tubes, and coin flips. Processed items are precious metals that have been processed by third parties to make other items, such as gold statues.
Gold coins come in different sizes ranging from an ounce to one-tenth ounce. They also come in varying qualities. For instance, older coins minted in the 1800s contain 90% to 92% gold. In contrast, newer coins minted after 2006 are made of 99.9% gold. In addition, some dealers may also sell alloyed gold coins that are made up of 91.7% gold, with the remainder made of silver or copper.
The gold coin price is often based on the size and gold content. However, some coins can cost more than the gold spot price based on rarity, demand, and design elements.
There are four types of gold coins: