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Old 09-08-2014, 06:45 PM
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Paper gold, physical gold, and wash sale rules

I have a question about wash sale rules with regard to the question of being "substantially identical". I have shares in the "paper gold" IAU exchange-traded fund, which I wish to sell. I wish to use the proceeds to buy physical gold bullion (American Eagle gold coins). I am wondering if I need to wait the 30 days after the sale before buying the coins to avoid the wash sale rules.

I am not sure that the shares of paper gold would be considered "substantially identical" to the physical gold. I tend to think they would be, and thus would be subject to the wash sale rules, so I should wait the 30 days.

On the other hand, it is my understanding that physical gold is considered a collectible, and that collectibles are not subject to the wash sale rules. So in that case, I need not wait the 30 days.

I'd appreciate any advice and expertise, thank you!



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Old 09-09-2014, 01:36 AM
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Originally Posted by JohnnyRico View Post
I have a question about wash sale rules with regard to the question of being "substantially identical". I have shares in the "paper gold" IAU exchange-traded fund, which I wish to sell. I wish to use the proceeds to buy physical gold bullion (American Eagle gold coins). I am wondering if I need to wait the 30 days after the sale before buying the coins to avoid the wash sale rules.

I am not sure that the shares of paper gold would be considered "substantially identical" to the physical gold. I tend to think they would be, and thus would be subject to the wash sale rules, so I should wait the 30 days.

On the other hand, it is my understanding that physical gold is considered a collectible, and that collectibles are not subject to the wash sale rules. So in that case, I need not wait the 30 days.

I'd appreciate any advice and expertise, thank you!
I have a question about wash sale rules with regard to the question of being "substantially identical". I have shares in the "paper gold" IAU exchange-traded fund, which I wish to sell. I wish to use the proceeds to buy physical gold bullion (American Eagle gold coins). I am wondering if I need to wait the 30 days after the sale before buying the coins to avoid the wash sale rules.=========>>>>>> The wash sale rules, that prevent you from taking a loss and then immediately repurchasing a security, do not apply to collectibles, so that you can a take a loss and then repurchase the metal immediately.

I am not sure that the shares of paper gold would be considered "substantially identical" to the physical gold. I tend to think they would be, and thus would be subject to the wash sale rules, so I should wait the 30 days.====>>no; the wash sale rules do not apply to collectibles

On the other hand, it is my understanding that physical gold is considered a collectible, and that collectibles are not subject to the wash sale rules. So in that case, I need not wait the 30 days.====>>>>>>>.Correct.



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Old 09-09-2014, 11:06 AM
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Thank you for the help!



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