Are there different tax implications for investors in gold ETFs versus other ETFs?
Yes. Investor gains realized from gold ETFs are taxed as if that investor owns the underlying gold. This means that taxes are levied at a higher rate than capital gains. While the tax rate on the majority of long-term capital gains rests at 15 percent, gains recorded on the sale of “collectibles” (such as gold bullion) held for a period of greater than one year face a maximum tax rate of 28 percent.