You generally cannot sell gold to a bank in the United States. Federal law lets national banks buy and sell coin and bullion, but almost no retail branch actually offers the service to walk-in customers.1Office of the Law Revision Counsel. 12 US Code 24 – Corporate Powers of Associations When a bank does participate, the service usually sits inside a private wealth management division serving high-net-worth or institutional clients, not a teller window. For everyone else, the realistic path runs through a licensed precious metals dealer, a refinery, or an online bullion marketplace.
Why Banks Rarely Buy Gold
The obstacle is operational, not legal. Handling physical gold requires secure vault storage, certified assaying equipment, specialized insurance, and staff trained to evaluate precious metals. Those costs are hard to justify at an institution built around deposits, loans, and digital payments. Even large national banks typically point gold sellers toward third-party refineries or bullion dealers.
Federal thrift institutions gained similar permission to trade precious metals after regulators removed an older prohibition, though supervisors warned that speculative gold trading would still be treated as an unsafe banking practice.2Office of the Comptroller of the Currency. Legal Opinion P-2006-1 – Permissibility of a Federal Savings Association Engaging in Precious Metal Transactions The authority exists on paper. The retail infrastructure does not.
Where to Sell Instead
Licensed precious metals dealers, both storefront and online, are the most common buyers. Many offer instant price quotes tied to the current gold spot price. Large online platforms let you ship insured gold and receive payment after verification, which helps if no reputable dealer operates nearby. Refineries will buy gold in nearly any form, including scrap and jewelry, because they have the equipment to process it. Their pricing reflects the cost of refining.
Whichever route you choose, the same federal reporting and tax rules apply. A buyer who proposes splitting your sale into smaller pieces to avoid paperwork is offering to commit a federal crime and dragging you into it. Pick a buyer with clear compliance practices.
What Buyers Will and Won’t Take
The two categories that sell most easily are sovereign-minted bullion coins and accredited refinery bars.
Government-minted coins are the most liquid form of physical gold. The American Gold Eagle uses a 22-karat standard (91.67% gold, balanced with silver and copper for durability). The American Buffalo is 24-karat (.9999 fine). Both carry legal tender status, though the face values are symbolic; the real value tracks the gold spot price.3United States Mint. Bullion Coin Programs The Canadian Gold Maple Leaf and other widely recognized sovereign coins also sell without difficulty. U.S. commemorative gold coins are legal tender too, but collector premiums and limited mintages complicate their pricing.
Refinery bars sell easily when they meet the London Bullion Market Association’s Good Delivery standard of at least .995 fineness, carry recognized hallmarks, and remain in their original sealed assay packaging. Bars without verifiable hallmarks or broken out of their assay cards face rejection or steep discounts.
Scrap gold, broken jewelry, and dental gold are a different market. Institutional buyers generally will not touch them because those items need refining before they reach a tradable purity. A dedicated gold refinery or a jeweler who buys scrap is the appropriate buyer for that material.
Identification and Proof of Ownership
Any institution buying gold from you must verify your identity under federal anti-money-laundering rules. Banks are required to maintain a written Customer Identification Program that collects your name, date of birth, address, and an identification number such as a Social Security or taxpayer identification number.4eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks Bring a valid government-issued photo ID.
Buyers also want evidence you own the gold legally. The strongest proof is the original purchase receipt or invoice. If you no longer have one, which is common for gold held for years or received as a gift, the buyer may ask you to sign a sworn affidavit of ownership describing the gold, stating you acquired it lawfully, and carrying your signature. Some affidavits require notarization. Notary fees typically run $2 to $25 per signature, though a few states set no statutory cap.
Cash Reporting and the Structuring Trap
When a gold sale generates more than $10,000 in physical currency (not a check or wire), the financial institution must file a Currency Transaction Report with the Financial Crimes Enforcement Network. Multiple cash transactions in a single day that add up to more than $10,000 are aggregated and reported the same way.5FinCEN. A CTR Reference Guide
Separately, any trade or business, including a precious metals dealer, that receives more than $10,000 in cash in a single transaction or in related transactions must file IRS/FinCEN Form 8300. Precious metals are specifically listed as a designated reporting transaction.6Internal Revenue Service. IRS Form 8300 Reference Guide
Deliberately breaking a large transaction into smaller amounts to stay under $10,000 is called structuring, and it is a federal crime on its own. A structuring conviction carries up to five years in prison. If the structuring is part of a broader pattern of illegal activity involving more than $100,000 in a 12-month period, the maximum climbs to ten years.7Office of the Law Revision Counsel. 31 US Code 5324 – Structuring Transactions to Evade Reporting Requirement Even if the underlying gold sale is entirely legal, structuring the payment to dodge reporting is a standalone offense.
Whether You’ll Receive a 1099-B
Brokers and dealers must file IRS Form 1099-B for certain precious metals sales, but the trigger is narrower than many sellers assume. A sale generates a 1099-B only if the gold is in a form for which the Commodity Futures Trading Commission has approved trading by regulated futures contract and the quantity meets or exceeds the minimum delivery amount for that contract.8Internal Revenue Service. Instructions for Form 1099-B (2026) Selling a single American Gold Eagle, for example, will not generate a 1099-B if the applicable futures contract requires delivery of at least 25 coins.
The absence of a 1099-B does not release you from reporting the sale. Capital gains from gold sales go on your tax return regardless. If you fail to provide your taxpayer identification number when the buyer needs it, the buyer must withhold 24 percent of the gross proceeds as backup withholding.9Internal Revenue Service. 2026 Publication 15
How the IRS Taxes Gold Sales
The IRS treats physical gold as a collectible, so the profit faces a different rate than most investments. How much you owe depends on how long you held the gold.
Held more than one year, your profit is a long-term capital gain taxed at a maximum rate of 28 percent, higher than the 15 or 20 percent that applies to most other long-term investments like stocks.10Internal Revenue Service. Topic No. 409, Capital Gains and Losses If your ordinary income tax bracket is below 28 percent, you pay at your regular rate instead. Held one year or less, the gain is short-term and taxed as ordinary income.
Your taxable gain is the difference between the sale proceeds and your cost basis, which is generally the price you paid plus transaction costs like dealer premiums or shipping. Records matter. Without them, proving a lower gain is difficult.
Inherited Gold
Gold you inherited gets a stepped-up basis to fair market value on the date of the original owner’s death, not what they originally paid.11Office of the Law Revision Counsel. 26 US Code 1014 – Basis of Property Acquired From a Decedent If a relative bought gold at $400 an ounce and it was worth $2,000 an ounce when they died, your basis starts at $2,000. Sell at $2,500 and you owe tax on $500 an ounce, not $2,100.
Gold received as a gift is different. You generally take over the giver’s original cost basis, so the full appreciation may be taxable when you sell.
Inside the Sale
Before agreeing on a price, the buyer verifies your gold is genuine and matches its stated purity. The most common method is X-ray fluorescence analysis, a non-destructive test that reads the exact percentage of gold and other metals present without damaging the piece. Some buyers also use ultrasonic density testing to detect internal inconsistencies like tungsten inserts.
Buyers pay below the current spot price. The gap is the bid-ask spread. For widely recognized bullion coins in standard quantities, the spread typically runs 2 to 4 percent below spot. Large bars from accredited refineries command tighter spreads, often 1 to 2 percent. Less common items, damaged pieces, or gold without clear provenance see wider spreads. Compare offers from more than one buyer before committing.
Once you agree on a price, you sign a transfer-of-ownership agreement and bill of sale. Payment for larger transactions comes by wire transfer or check rather than cash. Settlement usually takes one to three business days while the buyer’s compliance team finishes internal review. You should receive a transaction receipt showing the weight and purity of the gold sold, the agreed price, and the settlement date. Keep it. That receipt is your record for tax reporting.