Gifting Gold and Silver
You can give gold or silver coins and bars to anyone, and most gifts never produce any gift tax. The IRS sets an annual per-recipient exclusion, and gifts above it generally require the giver to file a gift tax return, but tax is usually only owed after a much larger lifetime amount is used. The recipient generally takes over your cost basis, so pass along your purchase records with the metal.
How Gift Tax Rules Apply to Bullion
For federal gift tax purposes, a gift of gold is treated like a gift of any other property. The value of the gift is the fair market value of the metal on the day you give it, not what you paid for it. For bullion, that usually means its value based on current market prices for that coin or bar. For proof or graded coins, the market value may be quite different from the metal content.
According to the IRS gift tax FAQs, the person making the gift is generally responsible for any gift tax, not the recipient. Several kinds of transfers are not treated as taxable gifts, including gifts to a spouse who is a U.S. citizen and gifts that fall within the annual exclusion per recipient. Married couples may be able to elect to split gifts, effectively combining their exclusions.
When You Need to File a Gift Tax Return
If the value of what you give one person in a calendar year exceeds the annual exclusion, you generally file Form 709. Filing does not necessarily mean paying tax: the excess usually reduces your lifetime exemption instead. Check the current exclusion on the IRS page before you give, and confirm whether splitting a gift or any other option makes sense with a tax professional.
The Recipient's Cost Basis
This is the part most people overlook. When you give appreciated metal during your lifetime, the recipient generally takes your original basis for the purpose of calculating gain when they sell. If you bought a coin years ago for much less than it is worth today, the gain you would have had becomes their gain. Long-term gains on collectibles, which include precious metals, can be taxed at a maximum federal rate of 28%; see taxes on selling physical gold and silver.
Property inherited at death is generally treated differently, with a basis equal to fair market value at the date of death. That contrast is one reason some families coordinate gifts with their broader estate planning.
Whatever you decide, give the recipient a copy of your purchase receipt or a note of the date and cost. Without it, they may have trouble proving their basis later. Our guide to record-keeping for precious metals covers what to keep.
Choosing a Coin or Bar to Give
For a gift, recognisability and size often matter more than the lowest premium.
- Widely known bullion coins such as the American Gold Eagle or the American Silver Eagle are easy for the recipient to identify and later sell.
- Fractional gold coins keep the cost of a single gift lower, though premiums per ounce are usually higher. See fractional gold coins.
- Silver lets you give a physical piece of metal at a modest cost, which suits birthdays and milestones.
- Proof and commemorative coins can be attractive presentation pieces, but their resale value may be well below what you paid. Explain that to the recipient.
Practical Ways to Hand Over the Gift
- In person. Keep coins in their original capsules or mint packaging; handling with bare fingers can mark proof finishes.
- By shipment from the seller. Some dealers will ship directly to a recipient. Check who must sign for the package and whether it is insured to delivery.
- Through a vault account. Where a storage provider allows it, metal can sometimes be transferred to another person's account. Ask about the paperwork involved.
- To a minor. Gifts to children are often held through a custodial arrangement under your state's transfers-to-minors law. An attorney can explain the options.
Include a short note with the product name, weight, fineness and how to store it. A first-time owner may also appreciate a link to our precious metals for beginners guide.
Gifts Involving Retirement Accounts
You cannot gift metal directly out of an IRA to another person. Removing metal from an IRA is a distribution, which is generally taxable to the account owner and may face an additional tax if taken before the IRS-defined age. Once distributed, the metal is yours and could then be given. Our page on in-kind distributions explains how taking delivery works.
Buying Metal Specifically to Give
If you are buying for a gift, the usual checks apply: compare premiums, confirm the product and delivery terms in writing, and buy from a company you have verified. Goldco is one precious metals company that sells gold and silver for direct purchase; according to Goldco's website at the time of writing, direct purchases have a $10,000 minimum, so confirm current terms. Our guide to buying directly from Goldco explains the process.
Frequently Asked Questions
Does the person receiving gold pay gift tax?
Generally no. Under IRS rules the giver is usually responsible for any gift tax due.
Is a gift valued at what I paid or what it is worth now?
Gift value is generally the fair market value on the date of the gift. The recipient's basis for later sale is generally your original cost.
Can I split a large gift of coins over several years?
Many people give within the annual exclusion each year. Whether that suits your situation is a question for a tax professional.
Do I need an appraisal for a gift of bullion?
For standard bullion, a record of the market value on the gift date is often enough. For valuable collectible coins, a professional valuation may be wise.