Buying gold in California
California exempts some gold bullion and coin purchases from sales tax, but not all. Jewelry is taxed at the 7.25% state rate plus any local tax.
Gold has one national spot price in US dollars: the prices on this page are the same as on the gold price in the United States page. What differs in California is tax, explained below.
Sales tax on gold in California
Monetized bullion (coins), nonmonetized gold and silver bullion, and numismatic coins are exempt only when the single-transaction total is $2,000 or more (since Jan 1, 2023; indexed to CPI). Smaller purchases are taxed at the full local rate (7.25% to over 10%). Platinum and palladium bars and jewelry are taxable.
Tax when you sell gold in California
Profits on gold are generally taxed by California like other investment gains, under its income tax rules. At the federal level, the IRS treats bullion and most gold coins as collectibles: long-term gains (assets held more than a year) are taxed at your ordinary rate, capped at 28%, and short-term gains as ordinary income.
Selling gold or gold jewelry to a dealer in California
- License: Secondhand dealers (anyone whose business includes buying, selling, trading, taking in pawn, consignment or auctioning secondhand property) and coin dealers fall under the state secondhand goods law. Licenses are handled through a local licensing authority (police or sheriff), and the state Department of Justice runs the reporting system. Coin dealers are a separate category from secondhand dealers.
- Hold period: 7 days. Non-firearm reportable property must be held 7 days from the date it is reported to CAPSS (Section 21636.1). After 5 days, a dealer may sell if it records the buyer's name, address and a phone, email or text address. Firearms: 30 days (Section 21636). Police, sheriff or DOJ may allow earlier sale for good cause.
- What the dealer records: Report every item bought, taken in trade, pawned or consigned each day or by the next business day through the DOJ's California Pawn and Secondhand Dealer System (CAPSS). Coin dealers use an Attorney General paper form sent daily to the police chief or sheriff. Reports include a full item description (serial numbers, inscriptions, marks, material), the seller's name, address and verified ID. Seller ID records are kept three years.
- What sellers need: Seller must show an approved ID (such as a US passport, driver's license or state ID card), sign a certification of ownership or authority to sell, and give a legible fingerprint.
- Who is exempt: Coins, monetized bullion and commercial-grade gold, silver or other precious metal ingots are excluded from 'tangible personal property' (Section 21627). Coin dealers are excluded from the secondhand dealer definition and report on a separate form.
- The law: California Business and Professions Code, Division 8, Chapter 9 (Sections 21625 to 21647), secondhand dealers and coin dealers; hold period in Section 21636.1 (added by AB 1993, Chapter 184, Statutes of 2018).
Dealers report a customer's sale to the IRS on Form 1099-B only for certain forms and quantities, such as 1-kilo gold bars, 1,000 ounces of silver bars or 25 or more Krugerrands or Maple Leafs; American Eagles and smaller lots are generally not reported. Any business that receives more than $10,000 in cash in one transaction or related transactions files IRS Form 8300. Bring a photo ID when you sell.
What you pay over spot
Dealers sell Gold Eagles, Buffaloes, bars and rounds at a premium over the spot price shown here, which covers minting, shipping and the dealer's margin; small coins carry the biggest premiums. Jewelry adds design and labour. When you sell, dealers usually pay a little under spot for common bullion and the melt value, less a margin, for scrap.
Tax and duty information last reviewed October 2026. Rules change — confirm with your dealer or tax authority before a large purchase.