Investing in gold can help you protect against the volatility of the U.S. Dollar. For centuries, people have been buying gold as its price has been consistently growing despite inflation and stock market crashes. Today, you can invest in gold by purchasing physical gold coins or bullion and even establishing a gold IRA.
There are multiple pawn shops and gold dealers available all across the major cities in Ohio, where you can buy gold online. However, you can also invest in gold by purchasing coins, bars, and bullion online and having them delivered to your doorstep.
As all across the United States, the sale of precious metal products in Ohio is subject to a federal capital gains tax. This tax is applied to assets held by individuals for over a year. When the asset is sold at a higher price than the gold spot price it was bought at, the income from the sale is taxed. The tax rate is usually 0%, 15%, or 20% and depends on the profit you make from the transaction. However, it cannot be more than 28% of the sale price.
The federal capital gains tax rate is calculated based on the profit and filing status of the seller:
|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|
For a long time, the U.S. American Eagle coin was the only IRS-accredited product that could be traded. Today, the IRS has expanded the list of officially approved precious metal products available for sale.
The IRS approves all precious metal products that match the following requirements:
There are multiple options for those searching to invest in gold.
Starting July 2021, the state of Ohio doesn’t charge sales tax on the sale of most gold and silver products. This is one of the reasons why many regard gold as a good investment in Ohio.
However, the sales tax may apply on some precious metal products if they have been processed by third parties into items that are valued at more than their face value. These are usually in the form of statues or colorized coins. Accessory items such as holders, tubes, coin flips, and gloves may also be subject to sales tax.
The price of gold coins is mainly determined by their weight and gold content. Most new gold coins contain 99.9% gold, while older coins hold 90% or 92% gold. The higher the gold content and the heavier and larger the coin, the more it usually costs. However, some coins may cost more than their intrinsic value because of their rarity, scarcity, design elements, or demand.Unlike coins, gold bars don’t have any historical or cultural significance, and their price is solely determined by their weight and gold content.
Gold bars are usually bought for long-term investing purposes. Gold bars typically weigh from a few grams to a few ounces. They are produced by government-accredited mints and come with a certificate of authenticity.
Gold bars can come in four different types: