By Debbie Carlson | Dec 13, 2025, 4:00 am EST
To give is golden, and that is particularly true this year when it comes to charitable donations of the precious yellow metal.
Donating a highly appreciated asset allows you to dodge the taxman and do good at the same time. And few things have appreciated quite like gold, which is up 53% so far this year.
If you sold gold purchased on Jan. 1, you would owe capital-gains taxes on that 53% gain. But if you donate that same gold to a qualified nonprofit, it will pay no taxes, and you will get a tax deduction on the full value of the gold.
Donations of gold are rising. Anonymous gift-givers dropped eight gold coins of various sizes in the Salvation Army’s red kettles around Thanksgiving in Chicago. Those coins will likely be worth more than $10,000, the organization said in a press release, since gold is trading around $4,200 an ounce.
If you have bought precious metals in the past year, you are sitting on a gold mine. Platinum and silver have risen even more than gold. Platinum is up 77% to near $1,660 an ounce and silver has gained 89% to $58 an ounce.
Precious metals are a particularly good choice to gift because the long-term capital-gains tax rates for gold and other precious metals are higher than for stocks and other securities.
The Internal Revenue Service considers precious metals collectibles and taxes the long-term capital gains at up to 28%, above the 20% long-term capital gains rate for stocks and bonds. That higher tax rate affects both physical coins and bars and physical-backed exchange-traded funds. Short-term gains are taxed at the donor’s standard ordinary income-tax rates.
If you own gold ETFs and your designated charities can accept securities, the transaction is the same as if you donate stock since it is a transfer between two custodians.
Perhaps you bought physical coins and bars at Costco, or inherited gold and are feeling generous. It will take a few steps to ensure the process goes smoothly and that your gift meets IRS rules.
Unlike the Three Wise Men who gifted gold, you may need to get your metals appraised before donating, says Brian Kearns, president of Haddam Road Advisors and a certified public accountant. The IRS requires a qualified appraisal from a certified metals appraiser or a gold dealer for any noncash property donation over $5,000.
The most streamlined way to give metal to charities is to use a donor-advised fund and give the proceeds to your chosen charity, says Mark Gallegos, CPA and tax partner at Porte Brown. Before opening a donor-advised fund, confirm that the custodian accepts precious metals, and learn the logistics around appraisals, shipping and other rules.
Another option is to connect a charity with a gold dealer to facilitate a donation. Peter Thomas, chairman at precious metals dealer Ausecure, says a gold dealer can give the donor the fair value estimate, securely hold the gold, and send the money to the charity.
Gallegos concurs. “The cleanest logistics usually involve connecting the charity with an appraiser or dealer so the charity can sell the metal immediately. This avoids storage issues and gives the charity cash proceeds,” he says.
If your donation is over $500, you will need to... Follow this link to read the full article on Barrons.com >>
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