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.
The whole argument, in one line
Selling is permanent and can be taxable.
A loan is neither.
65%
Advance against value
$15k
Minimum loan
Same
Bars returned
Live market
Business-purpose loans only. Not available in Nevada, Vermont, North Dakota and South Dakota.
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 maneuver.
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 our 65% 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.
The other costs
The Spread
Charged once when you sell and again if you buy back in. Changing your mind has its own price.
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Losing the Position
The reasoning that made you buy metal does not usually change because an unrelated invoice landed this month.
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Replacement Cost
People price the buy-back at the price they sold for. It is almost never still that price.
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Selling on Someone Else's Schedule
When a supplier or a tax deadline picks the date, the price is whatever the market happened to be doing.
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What Borrowing Costs
The case against borrowing: a monthly obligation, a margin call mechanism, and an asset you could simply have sold.
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Scenarios
Where it shows up
Covering a Slow Quarter
A permanent decision about the metal, made in about ten minutes because one quarter came in short.
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Liquidating Dealer Inventory
Selling stock into a soft bid because the calendar said so, not because the bid was ever fair.
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Selling at a Market Low
Borrowing to avoid a sale at a low is a financing decision if you can service it, and a bet if you cannot.
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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.