economy
January 23, 2026
Flocking to precious metal ETFs? Keep an eye out for these tax surprises
Precious metals are rallying, but investors who are buying into the trade could be in for some tax complexity.
TL;DR
- Silver and gold futures have reached all-time intraday highs.
- Investor interest in precious metals has spiked due to seeking relative safety and foreign central banks building gold reserves.
- ETFs focused on precious metals, such as SPDR Gold Shares (GLD) and iShares Silver Trust (SLV), have seen substantial inflows.
- Tax treatment for precious metal ETFs depends on their structure.
- Holding a commodities ETF with physical assets sold after a year may be subject to a 28% long-term capital gains rate, similar to collectibles.
- Regularly trading these funds can lead to gains being taxed at ordinary income tax rates, potentially as high as 37%.
- Funds holding physical assets may sell holdings periodically, realizing gains or losses that are passed on to investors.
- Futures-focused ETFs can be structured as partnerships, requiring investors to receive a Schedule K-1, which may delay tax filings.
- Investors should understand the ETF's construction, underlying holdings, and whether it's held in a taxable or tax-deferred account before investing.
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