Question: I plan on purchasing gold coins for investment and possibly provide gifts to some relatives. What are the tax considerations if there are increases in value.

Answer: An excellent source for this issue is “Your Guide to Paying Taxes on Precious Metals.” The source is Hero Bullion (214-210-9948). If you hold the coins for longer than one year before you redeem them, then you can report the gains as long-term capital gains on your tax return. If you only hold the coins for less than a year, then you have to report the gains and pay tax based on your marginal tax rate. You are allowed to deduct any expenses such as sales tax or storage expenses on your return.

Only five states have no sales tax on the purchase of gold coins. If you give these coins as gifts to any relatives or

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