Gold traded below the $4,000-per-ounce mark again on Tuesday as the dollar remained resilient at over three-month highs, while reduced chances of another U.S. interest rate cut in December and easing U.S.-China trade tensions blunted bullion’s demand.
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Gold profits are glittering in 2025 — but cashing in may trigger a bigger tax bill than you might think.
The price of gold futures hit $4,000 per ounce in October, for the first time ever. While the precious metal dropped in price on Friday as part of a broader market decline, year-to-date returns still sat at nearly 50%, with a price around $4,100.
Exchange-traded funds backed by physical gold — like SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and abrdn Physical Gold Shares ETF (SGOL) — are up by a similar amount.
By comparison, the S&P 500 U.S. stock index is up about 15% in 2025, as of Friday’s close.
Heady returns in 2025 follow a year in which gold recorded its best annual performance since 2010, about 26%, according to the World Gold Council.
But investment profits from physical gold and funds that track gold are taxed differently from those of traditional assets like stocks and bonds, according to tax experts.
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The upshot is that investors — especially those in the top tax brackets — may pay a higher federal tax rate on gold profits relative to assets like stocks and bonds.
That could leave gold investors with a surprise tax bill.
“I’ve seen missteps quite a few times, especially this year with the run that gold has had,” said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo, which was No. 69 on the CNBC’s Financial Advisor 100 list for 2025.
Not all gold ETFs are taxed the same
“Long-term” tax rates on investment profits — known as capital gains — are preferential relative to the marginal income tax rates that investors might pay on wages and other income, for example.
Long-term capital gains rates apply when an investor has owned an asset for more than one year.
However, physical gold and funds backed by physical gold are treated as collectibles for tax purposes — and collectibles have a top 28% rate on long-term capital gains.
“There’s no getting around that [collectibles rate] just because it’s held in an ETF wrapper,” Lucas said.
This also applies to other precious metals like silver.
Funds that hold gold futures contracts — instead of physical gold — have yet a different tax structure, with a top federal tax rate of 26.8%, said Jeffrey Levine, a certified public accountant and certified financial planner based in St. Louis.
“Just because you have a gold ETF doesn’t mean it’s going to be taxed exactly the same,” said Levine, the chief planning officer at Focus Partners Wealth.
In both cases — collectible and futures — investors in the top tax bracket would pay a higher rate on long-term profits than a traditional asset like a stock, he said.
Of course, this tax discussion only applies to gold held in a taxable brokerage account and sold for a profit. It doesn’t apply to investors who hold gold ETFs in a tax-preferred retirement account, like an IRA.
Breaking down tax on collectibles and futures
There are three long-term capital-gains rates: 0%, 15% and 20%, depending on an investor’s annual income.
Short-term capital gains, which apply to assets held for a year or less, are different. Profit on such sales is taxed at ordinary income tax rates, like those that apply to wages, for example. There are seven marginal tax rates, ranging from 10% up to 37%.
Collectibles are taxed like short-term capital gains but are capped at 28%. That means an investor in the 32%, 35% or 37% income tax brackets wouldn’t own more than 28% in long-term capital gains on collectibles profits.
I’ve seen missteps quite a few times, especially this year with the run that gold has had.
Tommy Lucas
certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo
Meanwhile, capital gains for futures contracts are assessed based on a 60/40 tax structure, said Levine. That is, 60% of their profits are taxed as long-term capital gains, and the remaining 40% as short-term capital gains.
In the case of gold futures funds, here’s how the math works for someone in the top tax bracket: 60% of 20%, which is the top long-term rate for capital gains, is 12%; and 40% of 37%, the top marginal income tax rate, is 14.8%.
Added together, that’s a top capital-gains rate of 26.8% for gold futures contracts, Levine said.
While some higher-income investors might think it’s a better idea from a tax perspective to buy gold futures funds, there are also downsides, he said.
For example, such investors would get a K-1 tax form since the funds are often structured as partnerships, Levine said. That could make it more challenging and costly to file an annual tax return, he said.
The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.
The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.
Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.
The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.
Here is the list of the 50 countries on the list as o August 3, 2026
Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.
Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.
Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.
The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.
Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.
By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.
Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.
As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.
Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.
Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.
Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.
Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.
Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.
Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.
Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.
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