Cost of selling · The Tax Event
A Sale Is a Taxable Event. A Loan Is Not.
This is the largest number most people leave out of the comparison, and it is often larger than every other cost combined.
No credit check and no obligation. If borrowing is the wrong answer for your situation, you will be told that first.
What it actually means
Selling appreciated metal can create a capital gains liability in the year of the sale, so the cash you actually keep is not the market price. Borrowing against an asset is generally not a disposal and does not by itself create a gain. That is a structural difference in how the two transactions work, not a clever manoeuvre.
The specifics
- The proceeds you keep are the sale price less any tax liability it creates.
- A loan is generally not a disposal and does not by itself trigger a gain.
- The difference grows with how much the metal has appreciated.
- Interest on a business-purpose loan may be deductible, which cuts the real cost further.
The counter
Where this argument is weak
If the metal has barely appreciated, or if your circumstances mean no liability arises, this argument is weak and you should discount it accordingly.
Put a number on it
Instant estimate
What could you borrow?
Enter the ounces you hold. We advance up to 65% of market value.
| Metal | Spot / oz | Your oz | Value |
|---|---|---|---|
| Gold | $4,600.00 | $0.00 | |
| Silver | $69.00 | $0.00 | |
| Platinum | $1,840.00 | $0.00 | |
| Palladium | $1,329.00 | $0.00 |
Estimate only. Final advance rate and terms are confirmed after your collateral is inspected and verified. Spot prices are indicative and move continuously. Minimum loan is $15,000 (about $23,077 in collateral value at our65% rate).
These are business-purpose loans and are not offered for personal, family or household use. Not available in Nevada, Vermont, North Dakota and South Dakota. If metal prices fall materially we may contact you about adding collateral or paying down the balance to keep the loan-to-value in range.
FAQ
Common questions
- How much tax will I pay?
- We have no idea, and anyone on a lender's website who claims to is guessing. It depends on your basis, your holding period, your entity and your jurisdiction. Ask your accountant.
- Is this tax avoidance?
- No. A loan is a loan and a sale is a sale; they are simply different transactions with different treatment. Nothing here is a scheme and we would not build one.
- Is the interest deductible?
- Interest on a business-purpose loan often is. Your accountant decides that, not us.
- Do you give tax advice?
- No. Nothing on this site is tax advice, and this page in particular should be taken to your own adviser rather than acted on.
Next step
Run it both ways before you decide.
No credit check and no obligation. Tell us what you hold and what the money is for, and if selling is the better answer for your situation you will be told that first.
Business purpose only. Not available in Nevada, Vermont, North Dakota and South Dakota.