USA gold market
The United States has the world's largest retail gold market, and American buyers think in troy ounces. The spot price — quoted per troy ounce in US dollars — is the reference point for everything, from a one-ounce bar to a fractional coin. Retail jewelry is typically priced per gram at the counter, with craftsmanship premiums added.
Two coins from the US Mint dominate domestic buying. The American Gold Eagle, issued since 1986, is the best-selling gold coin in the country; it contains a full troy ounce of gold in a harder-wearing 22-karat alloy. The American Gold Buffalo, issued since 2006, offers the same ounce of gold in 99.99% pure 24-karat form for buyers who prefer maximum purity. Both are IRA-eligible, meaning they can be held inside a retirement account. Canadian Maple Leafs and South African Krugerrands are also widely traded.
Buyers range from long-term investors hedging against inflation to collectors and first-time savers. Large online dealers compete aggressively on premiums — the markup over spot — so comparing the all-in price per ounce across a few reputable sellers is standard practice before buying.
Taxes and rules
There is no federal sales tax or VAT on gold in the US, but state sales tax is a patchwork. Most states exempt investment-grade bullion and legal-tender coins from sales tax; a small number of states — including Maine, Vermont, Hawaii, Kentucky and New Mexico — still fully tax precious metals purchases, so the state you buy in matters.
At the federal level, physical gold is classified as a collectible. Gains on gold held longer than one year are taxed at a maximum rate of 28%, which is higher than the rate applied to stocks. Jewelry bought at retail is subject to the applicable state sales tax like any other consumer good. Because state rules change frequently, verify the current position in your state before placing an order.
For zakat calculators
American Muslims generally apply the 87.48-gram gold nisab when working out zakat. Since US bullion is sold by the troy ounce, converting ounces to grams (one troy ounce equals 31.1035 grams) is the first step — just under three ounces of gold meets the nisab. A calculator that accepts grams keeps the math simple regardless of how the gold was purchased.
Try our free zakat calculator with live prices and automatic nisab check. Farmers: also see our ushr calculator.
Frequently asked questions
Do I pay sales tax when buying gold in the US?
It depends on your state. Most states exempt investment bullion and government-minted coins from sales tax, but a handful of states tax precious metals purchases in full. Jewelry is taxable in nearly every state. Check your state's current rules before buying.
What is the difference between the American Gold Eagle and the Gold Buffalo?
Both contain one troy ounce of gold and are made by the US Mint. The Eagle is 22-karat (91.67% gold, alloyed for durability) and comes in fractional sizes down to one-tenth of an ounce. The Buffalo is 24-karat (99.99% pure) and is sold only as a one-ounce coin, usually at a slightly higher premium.
Is gold taxed as a collectible in the US?
Yes. The IRS treats physical gold, silver and other precious metals as collectibles. Gains on metal held for more than a year face a maximum federal rate of 28% — higher than the long-term capital gains rate on securities. Short-term gains are taxed as ordinary income.
How is the gold price quoted in the United States?
The benchmark is the spot price per troy ounce in US dollars, set by global markets and quoted continuously during trading hours. Dealers list products at "spot plus premium," where the premium covers minting, distribution and their margin. Jewelry stores quote per gram by karat.
Gold prices in other countries
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