Precious Metals Academy
Tax Strategies
Optimize after-tax returns with tax-efficient strategies for Canadian and US investors.
In short
- Canadian investors: in a taxable account both physical and PHYS/PSLV are capital property. As of September 2026, CRA guidance reflects a one-half capital-gains inclusion rate — verify current CRA rules before relying on it.
- US investors: PHYS/PSLV can reach the 0%, 15% or 20% long-term capital-gains rates instead of the 28% collectibles cap — but only with a timely QEF election on Form 8621 and the annual filings that follow.
- US investors who hold PHYS/PSLV in a taxable account and make the QEF election file Form 8621 every year; PFIC shares held through an IRA, Roth IRA or 401(k)-type plan are generally exempt from that filing (IRS Form 8621 instructions, Rev. December 2025).
- Registered and retirement accounts change the picture: Roth IRA and TFSA growth can be tax-free and Traditional IRA and RRSP growth is tax-deferred — which suits you depends on contribution room, income now and in retirement, and withdrawal plans.
- Harvesting a loss can offset realised gains. In Canada the superficial-loss rule denies it if the same property, physical metal included, is bought back within 30 days before or after the sale and still held 30 days after; in the US the wash-sale rule does the same for shares and fund units such as PHYS/PSLV, but not for physical metal.
Tax treatment can make a meaningful difference to after-tax returns, and it differs sharply between Canada and the United States. This guide describes the rules as they stood in September 2026.
Capital-gains tax is only half of the picture. Many US states also charge sales tax when you buy bullion, with rules that differ by state, metal and purchase size — see the state-by-state bullion sales tax guide, which has a separate page for Canada. The Canadian rules for selling, each with its Income Tax Act or CRA source, are set out in capital gains tax on gold and silver in Canada.
For a worked Canadian example, one gold lot taken through the average-cost rule, the Bank of Canada exchange rate for each day and the superficial-loss rule, see selling gold and silver in Canada.