Gold Is Booming: Now What?

Gold prices are soaring to unprecedented levels. In early October 2025, futures were trading near $3,900 per ounce, a record high.

Daily trading volumes have surged above 200,000 contracts, well above historical norms and signaling that buying activity is intensifying.

Institutional investors and individual buyers are both fueling this rally, underscoring gold's safe haven appeal in uncertain times.

Ok, so everyone agrees gold is a great way to protect your wealth, but now what?

Breaking the $4,000 Barrier

Wall Street is bullish on gold, with analysts seeing little reason to doubt its climb above the $4,000 mark.

Government shutdowns and ongoing geopolitical conflicts are pushing investors toward secure, tangible assets.

The rally's momentum is supported by a loss of faith in the dollar, ongoing central bank buying, and widespread under-ownership of gold.

Even amid occasional profit-taking dips, the overall trajectory appears strong.

Physical Gold Demand

It's not just ETFs and futures. Physical gold demand is growing, reflecting both retail and institutional interest. U.S. and global coin sales have surged.

Recent three-month retail sales of gold coins are up 46% compared to pre-2011 peak levels.

In China, quarterly sales of gold bars and coins more than doubled the five-year quarterly average.

Central banks continue to bolster demand as well, with net additions of 15 tons in August 2025 alone. Combined high retail demand and sustained institutional purchases have tightened physical supply, keeping sales volumes and prices high globally.²

Holding Physical Gold: Control and Taxes

So, you've decided gold is right for you.

The next question arises: how should you hold it? The answer depends on your goals, timeline, and comfort with taxes.

Owning physical gold such as coins, bars, or bullion stored personally gives you complete control. You can sell whenever you want and decide how to store it.

But taxes come into play: when you sell, whether you're 35 or 65, you pay capital gains tax on profits. The IRS treats it as a collectible, meaning long-term gains are taxed up to 28%, higher than typical stock or real estate gains.

Short-term gains are taxed as ordinary income, and there's no extra benefit for waiting until retirement. The trade-off is flexibility and access versus tax advantages offered by retirement accounts.

Gold IRAs: Tax-Advantaged Security

A Gold IRA, formally a Self-directed IRA, allows you to hold physical gold inside a tax-advantaged retirement account. The IRS requires that approved custodians store the gold in approved depositories.

There are two main options: Traditional and Roth Gold IRAs.

• Traditional Gold IRA: Contributions are pre-tax, reducing your taxable income now. Taxes are deferred until withdrawals in retirement, which are taxed as ordinary income. Early withdrawals before 59½ incur a 10% penalty.
• Roth Gold IRA: Contributions are after-tax, but all qualified withdrawals, including gains, are tax-free.

Comparing Personally Held Gold and Gold IRAs

Consider a $50,000 gold investment that appreciates to $100,000 after twenty years:

• Personally held: After 28% tax on the $50,000 gain, you keep $86,000.
• Traditional Gold IRA: Assuming a 24% tax bracket, you keep $76,000.
• Roth Gold IRA: You keep the full $100,000 tax-free.

While personally held gold seems attractive for control and liquidity, a Traditional Gold IRA offers other benefits.

Why a Traditional Gold IRA Can Be Better

1. Larger Upfront Investment: Pre-tax contributions let you invest more from the start. For example, $10,000 after-tax is equivalent to $13,158 pre-tax. This larger base compounds faster inside the IRA.
2. Potential Lower Taxes in Retirement: Retirees often fall into lower tax brackets, which can reduce the tax impact compared to the 28% collectible rate.
3. Immediate Tax Deduction: Contributions can reduce taxable income in the year of contribution.
4. Safety and Convenience: Gold is securely stored, and custodians handle reporting, paperwork, and compliance. IRA-level protections can also aid estate planning.
5. Estate Planning: Certain Gold IRAs can lessen inheritance tax burdens when assets are passed to beneficiaries.

The Power of Tax Deferral

Over 20 years, a $13,158 pre-tax Traditional IRA investment growing 4% annually could reach $28,702.

Following a 15% tax on withdrawal, you keep $24,397.

That same $10,000 in physical gold would grow to $21,911, with a 28% tax leaving $18,576. Tax deferral and a higher initial investment can yield roughly 31% more after-tax value over two decades.

When Personally Held Gold Might Be Better

A Traditional Gold IRA isn’t ideal for everyone. Personally held gold or a Roth IRA may suit you better if:

• Your retirement tax rate will be higher than now.
• You want immediate access and complete control.
• You’re already investing after-tax funds and don’t need a deduction.

Conclusion

Gold itself doesn’t generate income; its value lies in long-term wealth preservation and diversification. The choice between physical gold and a Gold IRA depends on tax treatment, control, and your financial timeline:

• Personally held gold offers flexibility, privacy, and immediate access but comes with a higher capital gains tax.
• Traditional Gold IRAs allow tax-deferred growth and larger initial investments, which can translate into greater long-term wealth.
• Roth Gold IRAs provide tax-free withdrawals in retirement, combining long-term security with simplicity.

For many investors, the best approach is a mix; holding some gold personally for immediate access and some in a Gold IRA for long-term, tax-advantaged growth.

With record highs in gold prices and a clear case for both physical ownership and tax-advantaged retirement accounts, now may be the right time to make a move.

For those interested in exploring their options can contact American Hartford Gold at 800-462-0071 to learn more about how physical gold can insure their golden years.

Max Baecker is the President of American Hartford Gold (AHG), the nation’s largest retailer of precious metals. He leads American Hartford Gold’s mission to help clients achieve long-term financial security with physical gold and silver.

Under his guidance, American Hartford Gold has delivered billions of dollars’ worth of precious metals to thousands of satisfied clients.

Max's dedication to upholding American Hartford Gold's industry-leading standards is reflected in its accolades. American Hartford Gold has made numerous high-ranking appearances on the prestigious Inc. 5000 List of America’s Fastest-Growing Private Companies. AHG holds an A+ Rating from the BBB and a 5-Star Rating on Trustpilot from thousands of American Hartford Gold reviews. American Hartford Gold is the only precious metals company trusted and recommended by Bill O’Reilly.

AHG offers investment-grade gold and silver coins and bars at competitive prices. Clients also benefit from its buy-back commitment with no back-end fees. To learn more, visit American Hartford Gold.