PMANA requests House Committee on Ways and Means to bring fairness to the taxation of precious-metal coins and bullion

The following press release is courtesy of the Precious Metals Association of North America (PMANA).

(Washington, D.C.)—Discussions surrounding tax reform have heightened in recent weeks, and the Precious Metals Association of North America (PMANA) has offered testimony before the House Committee on Ways and Means asking for a change in the Internal Revenue Code that would bring fairness to precious-metals bullion and coin investors, while also creating smart investment opportunities for Americans.

Since 1982, gains made on precious-metals bullion have been taxed at the ordinary income rate due to language defining such bullion as a “collectible.” Congress has made numerous attempts to mitigate the effects of this capital gains treatment on precious metals. The Tax Reform Act of 1986 granted the American Eagle family of coins an exemption from the “collectible” definition and allowed them to be included as equity investments in Individual Retirement Accounts. Over a decade later, the Taxpayer Relief Act of 1997 created purity and custody standards that, if met, would exempt bullion coins and bars from the definition while also allowing them in IRAs. Furthermore, precious-metals bullion and coins are purposely designed and produced in a way that excludes any assumption that they are rare or unique collectibles. Instead, bullion and coins are mass produced only as investments in their precious-metal content.

“Since 1986, Congress has taken significant steps to correct this regulatory inconsistency,” said Scott Smith, president of PMANA. “However, the ‘collectible’ definition remains for those investments in precious-metals bullion and coins that have not been exempt. These investments are taxed at the ordinary income rate for collectibles with a maximum rate of 28%—a rate 40% greater than the maximum capital gains rate for equity investments. We want to work with Congress to fix this inconsistency so that the government is not picking winners and losers when it comes to investments in precious metals.”

Unlike collectible coins that are pursued by hobbyists, bullion coins are precious-metal investment vehicles that are traded at the value of the commodity they contain. Since they are not rare, but rather mass produced specifically for investing, their status as a “collectible” for non-IRA investments is misaligned with their function and form. That is why PMANA is asking Congress to amend the Internal Revenue Code to treat gold, silver, platinum, and palladium, in either bullion or coin form, in the same manner as stocks, bonds, and mutual funds for purposes of the capital gains rate for individuals.    ❑



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  1. Jerry Diekmann says

    I think their idea makes sense. Bullion coins are really not “collectibles” – they’re investments, and should receive capital gains treatment just like stocks, bonds, and other instruments held as investments and which may gain in value or lose in value over time.

  2. Dustyroads says

    Barry, gatortreke,

    I put my two Falkland Islands “Britannia rules the waves” in flips tonight. I have to admit they are very nice looking coins.

  3. Dustyroads says

    Reading this article brings to mind the gold tributes…sold as numismatic pieces, but sure appear to be bullion.

  4. Barry says

    I’ve decided to go with capsules for the Falkland Island coins. I agree they do look nice. The British Virgin Islands silver Pegasus is a nice coin too . .It also shows Britannia but with no wording on the coin.

  5. cagcrisp says

    I see this proposal having virtually NO chance of happening. The Trump administration needs a Win. A Big Time Win. They NEED some type of tax reform. Something to make a splash. Moving the needle a little on the “collectables” does not give the administration a Win that it needs.

    Without the Border Tax to get a Win you need either revenue neutral (which the administration will Claim) OR you are going to have to finance with DEBT (which is what will Happen).

    Giving a tax break to the few that “report” taxes on collectables just makes the administrations job harder to accomplish.

    The administration wants to cut corporate tax rates. The administration wants to cut personal tax rates. Neither one of these agendas are helped by cutting capital gains rates on “collectables”.

    Before it’s all said and done you will be Lucky if the bay doesn’t Lower the threshold for sending out 1099s.

    …SO…Instead of Lowering taxes on collectables I can see enforcement of current law that will in effect raise taxes…

  6. Tom says

    Fat chance collectors will see anything positive . We can always hope though. Right now, losses on lottery tickets add up better for the players.

  7. Dustyroads says

    A few weeks ago a tube of 2017 ASE’s with a check from Provident put you back $365. Today the same tube is $390. I thought that was a good deal and took advantage of it. Glad I did.

  8. Just Another Dave In Pa says

    I think it’s fine to lower the tax rate on gains although it mostly affects the 1%.

    I’m not a seller although I’ve occasionally sold a few things. I mostly buy things and I’m happier that most states (around 35) don’t tax bullion coins. I’ve read that Paypal sends a 1099-k to users with 200 transactions and/or 20K in sales.

    Utah, since 2011, accepts gold and silver coins from the US Mint as legal tender. I think they only give face value though.

    Utah classifies gold and silver coins as currency instead of assets or even collectibles. This means no capital gains taxes in Utah when selling these coins although Federal taxes still apply.

  9. Xena says

    Hi everyone. Does anyone have any experience starting a coin club? I think I am going to give it a shot sometime this fall.

  10. Xena says

    Barry – I also going to go with a capsule. As has already been said, the coin is much nicer in person that the picture. Thanks again, Louis.

    Sharks2th – belated report on the tributes I ordered last month. They look great. No sign of them being the runt of the litter.

  11. cagcrisp says

    A Gold Proof National Park Service NGC PF70 just sold at auction for $355.05.

    Early Release cost was $400.45

    …SO…Someone holds for 16 months and loses $45.40 Before you get into grading costs, bay fees, pal fees and shipping costs…

  12. sharks2th says

    Xena – Glad you got good copies. I think you’ll really appreciate these long term.

  13. Dustyroads says

    cagcrisp, It is what it is. With a little the luck the NPS NGC MS70 ER will do better. I’ve always thought Thursday is a good night. Not quite the best timing for an auction. Probably a month or two early.

  14. mccam36525 says

    US Mint remaining product schedule filled in, No EU Silver set……………………SUX!

  15. Mattarch says

    No native american coin and chronicles set for 2017 either. Unless the product schedule is not complete.

  16. Tinto says


    Yeah, that NA $1 C&C set was the one I was looking forward to buying this year. I will buy the EU set in order to have a type set but nothing like the NA $1 C&C set in OGP … Hopefully the schedule is still incomplete …

  17. earthling says

    “A Gold Proof National Park Service NGC PF70 just sold at auction for $355.05.

    Early Release cost was $400.45

    …SO…Someone holds for 16 months and loses $45.40 Before you get into grading costs, bay fees, pal fees and shipping costs…

    Ouch. Ouch. Ouch. Ouch. And Ouch !

    With my success rate, if I bought a box of (15 ) slabbed PF70 and tried to walk them around the Macomb Coin Show , I’d be lucky to get offers of more than $300.00 !

    The Dealers would be telling me, hey it’s a lot of work to break those slabs. The melting pot doesn’t like plastic.


  18. earthling says

    I’ll be watching the Enhanced Uncirculated Set tomorrow. It might take it a while but I think I know where the value is headed…. south with the flocks of Geese.

  19. Mint News Blog says

    Xena, if you kept notes on the process, it could make a great guest post!

  20. KML in KY says

    US Mint updated their schedule.

    LESPS – Oct 5th

    American Liberty Four Medal Set – Oct 19th

    Of course there is no info on mintage, HHL, etc.

  21. cagcrisp says

    @KCSO, I Think you mentioned the possibility of mintages for the 2017 LESPS.

    What is Surprising to me is Moving the date up on the LESPS to October 5th.

    In 2016 the LESPS was on November 25th.

    Mints probably trying to get the LESPS out ASAP to try to catch those Still looking for the 2017S.

    Will be interesting to see pricing and more importantly ….the Mintage for the LESPS….

  22. cagcrisp says

    Moving the date up on the LESPS could be the reason that MCM continues to offer as many 2017S as they are…

  23. cagcrisp says

    Last year the Product Limit was 50,000 and pricing was $139.95 for the LESPS.

    Compare That pricing/mintage to Current pricing of a 2017S and you figure out whether you want to wade into the Current secondary pricing waters or wait 66 days for the 2017 LESPS?…

  24. KML in KY says

    No prices either.

    I think I’m going to get some of the enhanced sets tomorrow but I can’t decide how many. They may do alright. The enhanced coins will be necessary for complete album sets of Kennedy halves as well as quarters, dimes, nickels, pennies, & NA dollars. 225K would be a low mintage for most of those coins. I don’t know how many have those sets and keep them current anymore. I only have a complete set of Kennedy halves anymore.

    Nothing ventured nothing gained – or lost as the case may be. It will be interesting to see what happens tomorrow. I’m glad I passed on the platinum proof coin this year.

  25. Xena says

    KML – I am keeping up my sets, although it’s still work in progress. I just purchased the update pages I needed (I wasn’t collecting between 1994-2013); and I have been breaking open extra proof sets for dollars and halves. Just finished my Eisenhower book!

    I am in for 2 or 3 EU sets. I think these will be popular and sell out quickly. Scooped up by collectors, flippers or big boys – who knows? I have a feeling the average collector is going to get shut out again. Hope I am wrong. I’ll let you know if there’s a line at the Mint store tomorrow.

    Dianna – great idea. I am not a good note taker and tend to keep everything in my head. But I’ll grab a notebook and try to keep track. Hoping Louis will be our first guest speaker!

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