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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.
The Chinese culture has a very long history with gold. In Chinese culture, gold represents wealth, power, longevity, and happiness. Gold is often considered to be one of the most valuable and significant gifts one can give. This is why it’s often given at important life events such as birthdays, weddings, childbirth, and the New Year.
China notoriously has a very high standard for gold which can make it a sought-after commodity. Many people get Chinese gold as a gift or purchase it in China or Hong Kong without actually realizing its true value.
Where Chinese Gold Comes From
China is not only one of the largest consumers of gold, but they are also the world’s largest gold producer. The majority of the gold in China comes from one of the Chinese gold-only Northern China craton margins. Gold is also often mined in the eastern provinces of Shandong, Henan, Fujian, and Liaoning. There have also been slight increases in gold production in some of China’s western provinces such as Guizhou and Yunnan. The gold mined from these reserves is often stored in vaults in Beijing.
Why It’s More Expensive than Other Gold
While all gold is the same no matter where it comes from, Chinese gold is often marked at a higher price tag than gold from other countries. This is for two reasons:
- The world’s gold supply is low right now.
- Demand for gold is offset for all types of gold; however, Chinese gold is often 22 karats.
Chinese or Hong Kong gold is often marked with “999”, “9999”, or “999.5” to indicate its purity. Chinese gold may also be marked with Chinese symbols that indicate its purity:
| 足金 | 千足 | 万足 |
|---|---|---|
| 99.0% minimum purity | 99.9% purity | 99.99% purity |
We Buy Chinese Gold
At California Gold and Silver, we can buy and sell high-quality metals at a fair price. You can contact us to schedule an appointment or visit our office in Upland, California. Please feel free to reach out with any questions you may have!
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.
