Many Louisiana residents buy precious metals as a way to grow long-term wealth. Particularly, residents choose to invest in gold given its historical increase in value, especially during economic uncertainty. As a result, many investors buy gold coins and bars for long-term growth.
In addition to gold, residents also chose to invest in silver, platinum, and palladium as a way to diversify their portfolios. Nonetheless, before you start to invest in silver and gold, make sure to familiarize yourself with federal and state laws.
If you’re ready to start buying gold online, visit a gold dealer's website and browse their products. You may also find options to buy silver and other precious metals.
The IRS considers precious metal investments as capital assets classified as collectibles. As a result, all profits from selling physical gold or other precious metals, regardless of their form, are subject to federal capital gains tax by the IRS. Investors will owe capital gains tax if they sell their precious metals after holding them for at least one year.
The capital gains tax is equivalent to your marginal tax rate. The capital gains tax rates are 0%, 15%, or 20%, but they can reach a maximum of 28%, depending on your income. The following is a breakdown of 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 regarding the types of precious metals investors can hold in their accounts. It has approved various products, making it easier for those looking to buy gold bars or gold coins for sale. Here is a list of the requirements when choosing your precious metals:
A typical gold coin usually weighs between one to two ounces. However, you may find smaller units of gold coins such as half-ounce, quarter-ounce, and tenth-ounce coins. Moreover, gold coins vary in quality. For example, older coins hold a purity of 90% to 92%, whereas contemporary ones are made of 99.9% gold. You may also find alloyed gold coins made up of 91.7% gold, with the rest 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:
Gold bars come in different sizes, ranging from a few grams to 10 ounces. Larger bars are produced by pouring molten gold into molds, whereas smaller bars are made by minting rolled gold sheets. However, regardless of the bar size, investment-grade bars must abide by the international purity standard of 99.5% and be stamped with their weight in gold, fineness, and serial number.
The gold bar price is most often based on purity, gold content, and size. Gold bars for sale are available in several styles, including: