Gold ETFs Are Hot. The Tax Rules Behind Them Are a Mess. Here’s What CPAs Should Know

Why Everyone’s Suddenly Buying Gold

Gold’s spot price has exploded from about 2,600 dollars to more than 4,200 dollars in one year. Some analysts think it hits 5,000 in 2026. If interest rates drop, demand usually spikes even more.

But most advisors still say the same thing
Keep it to 5 percent max.
Gold is volatile, underperforms long term and turns into a tax nuisance if clients don’t know what they’re buying.

The Tax Trap: Physical Gold ETFs Are Not Taxed Like Stocks

The biggest ETF in the space is SPDR Gold Shares. When clients buy it in a taxable account, they assume long-term capital gains rates apply.

Nope.
Physical gold ETFs are taxed as collectibles.
That means long-term gains don’t get the 15 or 20 percent treatment.
They get hit with up to 28 percent, even if held for more than a year.

Clients in high brackets?
They pay the full 28 percent.

This is the most common mistake CPAs see at tax time.

Futures ETFs: The IRS 60 40 Rule Kicks In

Some ETFs don’t hold gold at all. They hold futures contracts.
Think Invesco DB Gold Fund.

These don’t get collectibles tax rates. They get something weirder
The IRS 60 40 rule.
Sixty percent of gains are taxed at long-term rates.
Forty percent at ordinary income.
Holding period doesn’t matter.

So even if a client holds it for ten years, the ETF still gets split treatment.

Good for planning.
Bad for explaining to the client who thinks they’re being double-taxed.

Mining ETFs: The Only “Normal” Option

Gold mining ETFs, like VanEck Gold Miners, own companies — not gold.
That means they get taxed like any regular stock ETF.

Short term gains are ordinary income.
Long term gains are 0, 15 or 20 percent depending on income.
No collectibles rules.
No 60 40 treatment.

But here’s the tradeoff
Mining stocks are insanely volatile.
And you’re betting on the companies, not the metal.

What CPAs Should Flag for Clients

• Gold ETFs are not interchangeable
• Tax treatment depends entirely on structure
• Physical gold ETFs can surprise clients with a 28 percent bill
• Futures ETFs create blended gains clients don’t expect
• Mining ETFs avoid the weird rules but add operational risk
• Gold should stay a tiny slice of the portfolio

This is a classic case of “simple investment, complicated tax return.”

FAQ

Are all gold ETFs taxed at 28 percent
No. Only physical gold ETFs.

Do futures ETFs get collectibles tax rates
No. They get 60 percent long-term, 40 percent ordinary.

Do mining ETFs get normal capital gains
Yes. They act like stock ETFs.

Should clients hold gold in taxable or retirement accounts
Retirement accounts avoid all the weird tax rules.
Taxable accounts are where people get burned.

Is gold actually a good long-term investment
Historically no. It trails stocks and bonds over long horizons.

Summary

Gold’s price boom is pulling in a new wave of ETF investors. But behind the simplicity of the ticker symbol is a complex tax structure that CPAs will spend a lot of time explaining next filing season. Physical gold ETFs get hit with collectibles tax. Futures ETFs trigger 60 40. Mining ETFs dodge both but add volatility.