Consumer reports best gold dredges1/10/2024 ![]() ![]() Finally, holding gold in a tax-advantaged account such as an IRA will avoid many of the tax headaches selling gold can cause.Dredging for gold is an old-fashioned mining method made new by modern technology. It may offer more favorable tax treatment. Another ETF option is PowerShares DB Precious Metals, which invests in gold and silver futures contracts. Those ETFs trade closer to spot pricing and are backed by gold bars stored in vaults in New York and London. But there are more cost-effective ways of doing that than buying physical gold, namely, through an exchange-traded fund such as SPDR Gold Trust or iShares COMEX Gold Trust. Commodities such as gold can add diversification and inflation protection to your portfolio. This doesn't mean you shouldn't buy gold. So any gain you make on gold or other precious metals will be taxed at a rate as high as 28 percent, which can often be higher than the long-term capital-gains rate. ![]() Tax disadvantageĪnother drawback in buying gold coins and bars is that the Internal Revenue Service considers gold a collectible. You'll rarely get more than 50 percent of your jewelry's melt value. But the spread is just as wide when you sell, and even wider when selling jewelry. So if you buy an ounce of gold when the spot price is $1,100, it'll have to reach $1,155 for you to break even, assuming you would be able to sell at the spot price. Also, when you buy physical gold, you'll pay a premium that can exceed 5 percent of the "spot," or market, price. ![]()
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