Rhode Island isn’t known for its richness in gold, and there are no commercial gold mining operations in the state. However, this hasn’t stopped its residents from investing in gold as it is a valuable commodity, a hedge against inflation, and an excellent portfolio diversifier.
However, before starting to invest in gold online in Rhode Island, make sure you are familiar with federal and state laws. Then, consider visiting a precious metal dealer’s website and browsing the available investment options. You can buy precious metal products from the dealer’s list of offerings, like gold coins and bars.
The IRS regards investments in precious metals as capital assets that fall within the collectibles category. As a result, investors must pay capital gains tax when selling physical gold or other precious metals.
Long-term capital gains tax is due only if the precious metals are sold after being held for at least one year. The capital gains tax rate depends on the profit you make from the sale. It can reach a maximum of 28%. Depending on your income, the tax rates are 0%, 15%, and 20%. The capital gains tax rates for 2023 are broken out as follows:
|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|
When opening a precious metals IRA, the IRS has strict regulations regarding the types of precious metals you can invest in your account. The requirements are as follows:
Gold coins typically weigh one to two ounces. Nonetheless, some gold dealers may sell coins in lower denominations like half-ounce, quarter-ounce, and one-tenth ounce. Gold coins also come in varying qualities. For instance, older minted coins contain 90% to 92% gold, and newer coins contain 99.9% gold. Some dealers also sell alloyed gold coins, which comprise 91.7% gold, with the remainder being made up of silver or copper.
There are four types of gold coins: