We have received your message. If you indicated that you would like to make an appointment, we will reach out to you shortly.
When you sell gold to us, we will explain every step of the process to help you understand how selling gold works. With your XRF Precious metals Analyzer, we can test your gold to know exactly what purity your gold contains. This helps us assess your gold to give you the most when you sell.
Have you been thinking about selling some of the gold or silver jewelry you have laying around at home? If you have, you may have wondered what we do with it once you sell it to us. We’ll give you a hint: we don’t resell it. What happens instead is that it gets repurposed into gold and silver bars or bullion.
We do not resell your jewelry.
While reselling jewelry may seem like the obvious thing to do, it doesn’t quite make sense for us as gold and silver traders. It’s easier to invest in gold and silver in a bar, bullion, or coin form than when it’s jewelry. This is the main reason we don’t resell your jewelry. Instead, we repurpose your jewelry into more investable materials.
It’s melted down into gold bars or bullion.
After you sell your jewelry to us, it gets melted down into gold and silver bars and bullion to make it easier to invest in. Your jewelry is heated to a very high temperature before it’s poured into a mold, then cooled to form a gold or silver bar. You can see examples of this process in the video below.
Check out this video to see how gold jewelry and scrap is melted into bars and bullion:
*Do not attempt to do this at home. This process should only be completed by professionals.
Ready to sell your gold or silver jewelry?
If you are ready to sell your gold or silver jewelry, contact us at California Gold and Silver and set up an appointment. Have questions? Check out our FAQ.
You may not know that when you invest in gold, you must pay taxes on any physical gold assets you own. This can be slightly confusing since taxes on gold investments are slightly different than other assets. Taxes may vary depending on certain factors such as your state, city, county, and the amount of gold you’ve purchased and sold.
How Gold is Classified
Gold is classified as a collectible, making it a little bit different than other investments. Gold is classified as a collectible because of its rarity and value. Silver, palladium, and titanium are classified this way as well. This classification does not change depending on what form your metals are in. This means that bullion, bars, and coins are all still considered collectibles by the IRS.
Capital Gain Taxes on Gold Investments
When you sell gold and make a profit, it’s taxed as a capital gain. Capital gains on gold change depending on how long you’ve held your gold. Gains held less than a year are taxed the same as ordinary income. Gains held more than a year are taxed as ordinary income; however, after one year they are maxed out at a 28% tax rate. Since the IRS doesn’t treat gold as a special asset, this means that there are no specific rules when it comes to capital gains taxes. You’ll have to plan accordingly with your tax or financial advisor if you want to minimize your tax bill on the gold you’ve traded.
three large gold bars on many dollar bills
Taxes on Self-Directed IRAs (SDIRAs)
If you’ve used gold as an asset on your self-directed IRA, or SDIRA, you may be wondering how taxes work on that. Since IRAs are not subject to federal taxes, the taxes collected on your SDIRA will be slightly different than your normal taxes. Also, if you withdraw money from your SDIRA early, you’ll be subject to taxes and possibly even withdrawal penalties. When you start an SDIRA, you can choose whether your contributions will be made before or after tax. For example, if you’ve opened a Roth SDIRA, your contributions are made with after-tax dollars and therefore, withdrawn tax-free.
Reporting Requirements
Tax liabilities are not due when the initial sale of metals is made. Instead, metal investments are reported on Form 1040 on your tax return. You may also need to fill out Form 1099-B depending on the type of metal that you are selling because it may be considered income. Examples of items that need to be reported are:
- $1,000 face value of U.S. 90% silver dimes
- Quarter or half dollars
- 25 or more 1oz Gold Maple Leaf, Krugerrand, or Mexican Onza coins
- Gold or silver bars that are 1kg or 1,000 troy ounces
Tax bills for these sales are due at the time of your regular income tax bill.
A Self-Directed IRA (SDIRA), sometimes called a Gold IRA, allows you to use alternative assets for your retirement funds such as precious metals like gold, silver, and platinum. Using an SDIRA over a traditional IRA has many benefits. And although in many ways, they work similarly to a regular IRA, there are a few key differences you should be aware of. Always talk to your financial advisor first to see if an SDIRA is a good option for your retirement plan.
How They Work
A gold SDIRA requires that you actually purchase the physical assets, and then store it as part of the investment. Your custodian will manage your account and keep track of all of the assets that you include in your account. The professionals at California Gold and Silver will facilitate the purchase of these assets for your account.
Why You Should Choose an SDIRA
Precious metals, especially gold, are a great option to choose as an asset for your SDIRA. There are many benefits you gain from using an SDIRA over a traditional IRA including:
- You can choose to use pretax or after-tax dollars through a special custodian or through your broker.
- The IRS allows you to purchase gold in any approved physical forms to use as an investment.
- These accounts are separate from any regular IRAs you have set up.
- Gold and other precious metals act as a hedge against inflation.
- Gold and other precious metals hedge your retirement savings against market crashes.
These are just a few of the reasons choosing an SDIRA is a great way to invest in your future, and why using gold for your SDIRA is a great choice for your asset.
What Are the Risks Involved
There are some risks involved when it comes to choosing an SDIRA and investing in precious metals in general. Some things to keep in mind are:
- The price of precious metals is constantly fluctuating.
- SDIRAs often carry higher fees than regular IRAs because they require you to purchase and store physical assets.
- The IRA puts a limit on annual contributions you can make to your SDIRA.
Keep these risks in mind when you are deciding if an SDIRA is right for you. You should always talk to your financial advisor or CPA before making any decisions about your finances.
Get Started with an SDIRA
You can easily get started with your SDIRA at California Gold and Silver Exchange. Or come into our office and fill out a form to start investing in your future. Be sure to talk to your financial advisor before making any monetary decisions.
