How to Buy Gold in USA: Eagles, Dealers & Tax Tips

The American Gold Eagle (22K, 1 oz, from the US Mint) is the default choice for American buyers — the most recognised and most liquid gold coin in the world, easy to buy and easy to sell anywhere. The American Buffalo (24K, 1 oz) is the pure-gold alternative, preferred by buyers who want 99.99% purity.

Bars from 1 gram to 1 kilogram carry lower premiums than coins — the larger the bar, the lower the premium per gram. For a buyer who wants the most gold for their money, bars beat coins; for a buyer who wants liquidity and recognisability, coins beat bars. Most American investors hold a mix.

The large online bullion dealers — APMEX, JM Bullion, SD Bullion, Money Metals — offer the widest choice and the most competitive premiums, with insured delivery and buyback programmes. Compare the total cost (including shipping and insurance) between two or three dealers before you buy.

Local coin shops offer the advantage of buying in person, paying cash, and walking out with the gold the same day — but their premiums are often higher than online dealers', and their stock is smaller. For a first purchase, an established online dealer is usually the better choice; for a quick top-up, the local shop is convenient.

Every gold product sells at a premium over the spot price: the dealer's margin, the mint's cost, and the cost of fabrication and delivery. For a 1-ounce Eagle, the premium is typically a few percent over spot; for a 1-ounce bar, less; for a 1-kilogram bar, less still.

Premiums rise when demand surges (during crises, when everyone wants gold at once) and fall when demand is quiet. The cheapest time to buy is usually when nobody is talking about gold — which is also, not coincidentally, the best time to buy it.

Physical gold in the USA is taxed as a collectible: long-term capital gains are taxed at up to 28%, higher than the rate on stocks. Gold ETFs are taxed the same way. Most states exempt investment-grade bullion from sales tax, so the purchase is cheap — the tax comes when you sell, not when you buy.

The main way to reduce the tax is to hold gold in a tax-advantaged account: a self-directed IRA can hold IRS-approved gold (Eagles, Buffaloes and certain bars), deferring or eliminating the tax depending on the account type. Consult a tax adviser before setting one up — the rules are specific, and mistakes are costly.

Small holdings can be stored at home in a good safe, bolted down and out of sight — but check your home insurance, which may limit cover for gold. Larger holdings belong in professional vault storage (allocated storage, where your specific bars are held in your name) or a bank safe deposit box.

Allocated vault storage costs a small annual fee (typically well under 1% of the holding's value) and includes insurance. Unallocated storage is cheaper but means you own a share of a pool, not specific bars — for most holders, allocated is worth the small extra cost.