Jun 16, 2026
Two investors can own the same amount of gold and walk away with very different after-tax returns.
Imagine two retirees who have invested the same amount in gold. One bought a gold ETF, while the other chose a self-directed Gold IRA. Even though both are betting on the same precious metal, the IRS may not treat them the same way when it’s time to cash out.
Advertisement
“A gold ETF and a Gold IRA get taxed at completely different layers” Geoff Schmidt, a CPA and founder of Holy Schmidt, told Moneywise. “Same asset, two entirely different rulebooks.”
A gold ETF gives investors exposure to gold through shares that trade on the stock market, while a Gold IRA allows investors to hold physical precious metals inside a retirement account. That difference affects how the investments are held, but it also affects how they’re taxed. Some investors assume gold ETFs receive the same favorable tax treatment as stock funds, while others believe a Gold IRA automatically offers the biggest tax advantage.
Here’s how Gold IRAs and gold ETFs compare from a tax perspective.
Gold ETFs don’t get taxed like stocks
Gold has seen a strong run over the past year. The precious metal hit more than 50 record highs last year and returned over 60% for the year as investors sought a safe haven amid economic and geopolitical uncertainty. According to the World Gold Council, gold ETFs attracted 801 tons of inflows in 2025, while purchases of bars and coins climbed to a 12-year high.
But many investors don’t realize those investments can be taxed differently than traditional stock funds.
“The common assumption is that a gold ETF behaves like a stock fund at tax time, with that nice 15% or 20% long-term rate,” Schmidt said. “For the large physically backed funds, GLD and SLV being the obvious examples, it doesn’t.”
Schmidt said gold ETFs are generally taxed based on the assets they hold. Since many of the largest gold ETFs own physical bullion, long-term gains can be subject to the same collectibles tax rules as physical gold, with rates of up to 28%.
Advertisement
However, that doesn’t mean every investor will pay 28%.
“Most people also get the tax rate wrong,”Achim von Bodman, CFP and senior tax manager at Watter CPA, told Moneywise. “The 28% rate is not a fixed rate, it is the maximum you will pay.”
According to von Bodman, investors in lower tax brackets may pay less than 28%, while higher earners could face an additional 3.8% Net Investment Income Tax.
Many investors assume gold ETFs receive the same favorable long-term capital gains treatment as stocks. In reality, gold follows a different set of rules. But while Gold IRAs can avoid the collectibles tax rate altogether, that doesn’t automatically make them the more tax-efficient option.
Must Read
- You can now build wealth like a landlord for as little as $100 — and no, you don't have to chase down rent or take 3 A.M tenant calls
- Goldman Sachs used to hoard prime real estate deals for the ultrarich. Two ex-analysts just opened the door for $250
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Why a Gold IRA isn’t automatically the better tax deal
Gold IRAs work differently. Instead of focusing on the gold itself, the IRS taxes the retirement account when money is withdrawn. But that’s where many investors can get tripped up.
“They put gold into a self-directed Individual Retirement Account thinking it will protect them from paying taxes on the gain,” von Bodman said. “The truth is, a traditional Gold Individual Retirement Account taxes everything you take out as ordinary income.”
In other words, the tax bill isn’t eliminated – it’s deferred.
Advertisement
Unlike a gold ETF, which may be subject to the collectibles tax rate, withdrawals from a traditional Gold IRA are generally taxed as ordinary income. Depending on an investor’s tax bracket, that rate can range from 10% to 37%.
“The IRA doesn’t erase the tax,” Schmidt said. “It just moves it to a different moment and a different rate.”
Roth accounts are an important exception. Qualified withdrawals from a Roth IRA are generally tax-free, which means investors may be able to avoid both the collectibles tax rate and ordinary income taxes on future gains.
Still, investors shouldn’t assume that avoiding the collectibles tax rate automatically makes a Gold IRA the more tax-efficient option.
Taxes aren’t the only thing investors should compare
Advertisement
Taxes aren’t the only difference between Gold IRAs and gold ETFs. Investors also need to consider fees, storage requirements and flexibility.
“A Gold IRA comes with an approved custodian, a depository to store the metal, insurance, and fees that can reach several hundred dollars a year,” Schmidt said.
Investors can’t keep the gold themselves, since it must be stored by an approved custodian. Gold IRAs also come with required withdrawals starting at age 73, which can make things more complicated than a traditional investment account.
“A gold ETF skips all of that: low cost, fully liquid, sellable in seconds,” Schmidt explained.
Neither option is necessarily better than the other — it comes down to what you’re trying to achieve. Gold ETFs may appeal to investors looking for a simple, lower-cost way to gain exposure to gold, while Gold IRAs may make more sense for those who want to own physical precious metals as part of their retirement strategy.
If you’re considering adding gold to your portfolio but aren’t sure which route makes the most sense, it may be worth speaking with a financial advisor who can help you weigh the potential tax implications, costs and tradeoffs based on your individual circumstances.
You May Also Like
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
- Robert Kiyosaki issues grim warning for baby boomers. Many could be ‘wiped out’ and homeless ‘all over’ the country. How to protect yourself now
Victoria Vesovski is a Toronto-based staff reporter at Moneywise covering personal finance, lifestyle and trending news. She holds degrees from the University of Toronto and New York University, and her work has appeared on platforms including Yahoo Finance, MSN Money and Apple News.
