Have you ever wondered how much silver you can legally own in the United States? It would stand to reason that there would be a limit since there are limits on how many animals you can own, but there isn’t for precious metals. In the US, you can own, buy, and sell as much silver as you want.
However, certain stipulations go into effect when you buy or sell large quantities. Cash transactions exceeding $10,000 must be reported to the Internal Revenue Service (IRS) under the Bank Secrecy Act to prevent money laundering. Failure to do so may result in fines.
Silver Ownership Was Briefly Banned in the U.S.
In 1934, President Franklin D. Roosevelt issued Executive Order 6814 to ban the ownership, possession, and control of silver in the United States. Anyone in the continental U.S., including businesses, investors, and individuals, had to sell their silver back to the government at a set price of 50 cents per ounce that the Treasury would pay for. Roosevelt wanted to increase the country’s silver reserves, in turn making the price of silver more stable.
The only exceptions to the order were:
- Silver jewelry or coins
- Silver of a fineness of .8 or less
- Industrial, professional, or artistic silver
- Unmelted scrap or sweepings under 500 troy ounces
- Silver owned by foreign governments or banks
Any silver not exempt from the order was required to be sold to the government within 90 days.
This unusual executive order lasted only a few years and was revoked in 1938 by Roosevelt.
Tax Implications of Owning Silver
Silver is considered a collectible for tax purposes, and collectibles tend to have higher tax rates than other investments. However, investment silver and collectible silver are different types and can have different tax rates. There are also short-term capital gains and long-term capital gains, which affect the taxes as well. It’s essential to know about all of these tax implications when owning silver so that you are prepared to file your taxes, regardless of how much you own. Some restrictions apply if you want to invest your precious metals into an IRA.
The Difference Between Collectible Silver and Investment Silver
According to the IRS, under IRC Section 408(m)(3)(A), the following are not included in the definition of “collectible”:
Silver
Coins with the following qualities:
- 40.6 mm in diameter
- 31.103 grams in weight
- Contains .999 fine silver
- Design has Lady Liberty on the obverse and an eagle on the reverse
- Inscriptions read year of minting, “Liberty,” “In God We Trust,” “United States of America,” “1 Oz. Fine Silver,” “E Pluribus Unum,” and “One Dollar”
- Have reeded edges
These requirements are only met by the American Silver Eagle coins, making it easy to determine whether the silver you own will be taxed as a collectible.
There are also specific requirements for your gold, platinum, and IRA investments:
Gold
The following coins meet these requirements:
- A $50 1 troy oz coin measuring 32.7 mm and weighs 33.931 g
- A $25 1/2 troy oz coin measuring 27mm and weighs 16.966 g
- A $10 1/4 troy oz coin measuring 22 mm and weighs 8.483 g
- A $5 1/10 troy oz coin measuring 16.5 mm and weighs 3.393 g
Platinum
The Secretary of the Treasury authorizes platinum coins (bullion and proof) issued by the U.S. Mint, including the American Platinum Eagles.
IRA
Precious metals can be used for purposes like retirement accounts (IRAs) if they meet the same purity standards required for futures trading and are stored with an authorized custodian. These specific cases are also not considered collectibles by the IRS.
State Regulation of Silver
States That Recognize Silver as Legal Tender
Multiple states have repeatedly attempted to pass bills recognizing gold and silver to be recognized as legal tender. Some have been successful, while other states continue to introduce new bills on the topic. When a state passes such a bill, it exempts the precious metals from state sales taxes, which most states have exemptions for already.
These states currently recognize silver (and gold) as legal tender and the year in which the bills were passed:
- Utah: 2011
- Kansas: 2013
- South Carolina: 2013
- Oklahoma: 2014
- Wyoming: 2018
- Arkansas: 2021
- Louisiana: 2024
- West Virginia: 2024
- Arizona: 2025
- Missouri: 2025
State Tax Rules
In recent years, many states have declared some precious metal products tax-exempt. Some states have successfully passed the bills, while others have attempted to pass them multiple times but have been ultimately vetoed.
As of January 2025, 47 U.S. states have passed full or partial sales and use tax exemptions for precious metal products. The states that still charge full sales taxes include Maine, New Mexico, and Nevada. Some states vary, with specifications such as that the items must be of a particular metal content, explicitly minted in the United States, or worth a certain amount. Here is a summary of the current tax laws in each of these states:
- Alabama: As of 2025, Alabama removed all income taxes on capital gains from the sale of gold and silver, along with the sales tax exemption, which was passed in 2018 and extended another five years in 2022.
- Alaska: Alaska has no state sales tax; however, local jurisdictions may impose taxes.
- Arizona: Arizona exempts precious metal bullion and coins from sales tax.
- Arkansas: Arkansas ended all taxes on precious metals in 2023.
- California: Sales of monetized bullion, nonmonetized gold or silver bullion, and numismatic coins are exempt from sales tax if the total transaction amount is $1,500 or more.
- Colorado: Colorado exempts sales of precious metal bullion and coins from state sales and use tax.
- Connecticut: Rare and antique coins, foreign currency, gold and silver bullion traded according to their value as precious metals and costing more than $1,000 are exempt from sales tax.
- Delaware: Delaware has no state sales tax.
- Florida: 6% sales tax on purchases below $500; transactions above this amount are exempt.
- Georgia: As of 2023, sales of gold, silver, and platinum bullion are exempt from sales tax.
- Hawaii: As it does not have a state sales tax, it currently imposes a general excise tax (GET) on precious metals. Multiple legislative attempts, as recently as 2024, have been made to remove the GET on precious metals, but these efforts have not yet been successful.
- Idaho: As of 2024, Idaho continues to exempt sales of precious metal bullion and monetized bullion from sales tax.
- Illinois: As of 2024, Sales of legal tender, medallions, and gold bullion issued by qualifying governments are exempt from sales tax.
- Indiana: In 2016, Indiana passed legislation exempting certain coins, bullion, and legal tender from sales tax.
- Iowa: No sales tax or capital gains tax on gold or silver bullion as of 2024.
- Kansas: In 2019, Kansas enacted legislation exempting sales of gold or silver coins and palladium, platinum, gold, or silver bullion from sales tax.
- Kentucky: In 2024, Kentucky passed legislation to exempt sales of currency and bullion from sales and use tax, effective August 1, 2024. However, Governor Andy Beshear issued a line-item veto against this exemption, and the situation remains legally contested.
- Louisiana: No sales tax on precious metals as of 2024.
- Maryland: 6% sales tax on purchases below $1,000; amounts above are exempt as of 2024.
- Massachusetts: Sales of rare coins of numismatic value, gold or silver bullion or coins, and gold or silver tender of any nation traded and sold according to its value as precious metal are exempt from sales tax if the transaction amount is $1,000 or more.
- Michigan: Investment bullion with a purity of at least 900 parts per 1,000 and investment coins are exempt from sales tax.
- Minnesota: As of 2023, bullion with 99.9% or more precious metal content is exempt from the sales and use tax.
- Mississippi: As of 2024, Mississippi removed sales taxes on precious metals coins, currency, and bullion.
- Missouri: As of 2024, current law exempts all bullion purchases and investment coins from all state and local sales taxes.
- Montana: No state sales tax.
- Nebraska: Effective 2025, the tax exemptions on precious metals from sales and use taxes include coins, notes, leaf, foil, and film as part of the bullion definition.
- New Hampshire: New Hampshire has no state sales tax.
- New Jersey: In 2025, New Jersey enacted a sales tax exemption for investment coins valued at least $1,000 each and certain investment bullion.
- New York: Precious metal bullion is exempt from sales tax if the transaction amount exceeds $1,000 and certain conditions are met.
- North Carolina: No sales tax on precious metals as of 2017.
- North Dakota: As of 2015, North Dakota exempts sales of legal tender from state sales tax but does not extend this exemption to gold or silver ingots or other non-legal tender valuable metals.
- Ohio: Effective 2019, there is no sales tax on investment metal bullion and investment coins.
- Oklahoma: Oklahoma does not levy a sales tax on any precious metal products considered legal tender, but they impose a capital gains tax on all.
- Oregon: Oregon has no state sales tax.
- Pennsylvania: As of 2019, investment bullion and coins are exempt from sales tax.
- Rhode Island: As of 2022, there is a sales tax exemption from the sale and storage, use, or other consumption in this state of precious metal bullion.
- South Carolina: As of 2022, precious metal bullion, legal tender, and currency are exempt from sales and use taxes.
- South Dakota: Coins, currency, and bullion are exempt from sales tax.
- Tennessee: Effective in 2022, Tennessee exempts sales of coins, currency, and bullion made of gold, silver, platinum, palladium, and other materials from sales and use tax.
- Texas: No sales tax on gold or silver bullion.
- Utah: In 2011, Utah ruled that ingots, bars, medallions, and decorative coins with at least 50% gold, silver, or platinum are exempt from sales and use taxes so long as they are not legal tender of any nation.
- Vermont: As of 2023, precious metals sold for investment are exempt from the sales and use tax when the sale is valued at $1,000.00 or more.
- Virginia: Gold, silver, or platinum bullion or legal tender coins whose sales price exceeds $1,000 are exempt from sales and use tax.
- Washington: Sales of precious metal bullion and monetized bullion are exempt from retail sales tax in Washington.
- West Virginia: As of 2019, West Virginia removed sales tax on precious metals.
- Wisconsin: In March 2024, Wisconsin enacted legislation exempting bullion from state sales tax for coins, bars, rounds, or sheets containing at least 35% precious metal content.
- Wyoming: As of 2018, precious metals bullion is exempt from state sales tax.
