Capital Gains Tax Silver that has gained value should only be reported if you sold it. So, if the silver you've already bought is now worth more but you have no plans to sell it, it's not considered taxable. The Internal Revenue Service (IRS) considers physical holds of precious metals such as gold, silver, platinum, palladium and titanium to be capital assets specifically classified as collectibles. Holdings of these metals, regardless of their shape, such as bullion coins, ingot ingots, rare coins or ingots, are subject to capital gains tax.
Capital gains tax is only due after the sale of such shares and if the shares were held for more than one year. However, the IRS considers physical quantities of metal to be “collectibles.” For collectibles, such as coins, works of art and ingots, the standard tax rate is 28%. As a result, owning physical gold or owning funds that in turn hold physical gold means you can pay a higher maximum capital gains rate of 28%. Two of the most popular ways to avoid the CGT are to buy tax-free UK coins and Pension Gold.
Gold and silver bars may attract unwanted attention or require special statements for monetary instruments, but a gold necklace is, well, just another gold necklace. This includes gold rulers, gold Britannias, silver Britannias and some other limited-issue coins from the Royal Mint.