From CNBC: 2025-05-01 10:24:00

Gold prices are soaring, hitting an all-time high of over $3,500 per ounce. This surge has led to big profits for investors, with gold futures up 23% in 2025 and 36% over the past year. Concerns of a global trade war have fueled the rise, as investors turn to gold as a safe haven.

Investors holding gold exchange-traded funds may face a 28% top federal tax rate on long-term capital gains, as the IRS considers gold a “collectible.” This rate is higher than the 20% maximum rate for stocks and real estate. Gold funds like GLD, IAU, and SGOL are affected, surprising some investors.

Long-term capital gains tax rates for collectibles like gold are capped at 28% based on the seven marginal income tax rates. This differs from traditional financial assets, which are subject to rates of 0%, 15%, or a maximum of 20%. Short-term capital gains are taxed at ordinary income rates, ranging from 10% to 37%.

Read more: Gold ETF investors may be surprised by their tax bill on profits