Gold & Precious Metals Trading Tax in NZ

The short version

• IRD's position (in QB 17/08) is clear: profit from selling gold bullion is taxable income.
• The reasoning: gold earns nothing while you hold it — no dividend, rent or interest — so the only way to profit is to sell. IRD presumes that means you bought it with the purpose of selling, which makes the gain income.
• Holding it as a long-term investment, an inflation hedge, diversification or a store of value is not enough to rebut that presumption.
• The same logic applies to silver, platinum and other non-income-producing metals — and to gold ETFs, gold CFDs and units in gold.
• You can deduct the cost of the metal and your selling costs; the net gain is what's taxed, at your marginal rate.

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Gold has a reputation as the ultimate "safe" asset — quietly held, outside the system, tax-free. That last part is where a lot of New Zealanders get a nasty surprise. IRD has looked at gold specifically, and its answer is that the profit is taxable income. Here's why, and what it means for you.

The IRD position on gold

In a published question-we've-been-asked (QB 17/08), IRD concluded that proceeds from selling gold bullion — bars, coins, certificates or units — are income. That's not a grey area or an aggressive reading; it's IRD's settled view.

The logic hangs on one feature of gold: it doesn't generate any return while you own it.

The "purpose of disposal" trap

NZ taxes profit from selling property you acquired with a purpose of disposal. For most assets there's a genuine argument about intention. For gold, IRD short-circuits it: because gold produces no income, the only way to get a return is to sell it — so IRD presumes selling was your purpose from the start.

Crucially, the onus is on you to rebut that presumption, and IRD has said the usual reasons people give — buying gold as a long-term hold, an inflation hedge, portfolio diversification, or a store of value outside the monetary system — are not sufficient to do so. In practice that makes gains on gold very hard to treat as tax-free.

If that logic sounds familiar, it's the same reasoning IRD applies to crypto gains — another asset that pays nothing while held.

It's not just physical gold

QB 17/08 talks about bullion, but IRD notes the principles apply to the disposal of any non-income-producing asset. So the same treatment reaches:

• Silver, platinum and palladium bullion and coins.
• Gold and metals ETFs and units.
• Gold CFDs and futures — though these are also caught by the financial arrangements rules, which independently put them on income account.

Different wrapper, same destination: the gain is income.

A worked example

You buy $20,000 of gold bullion. Two years later you sell it for $27,000.

• Proceeds: $27,000
• Less cost: $20,000
• Less selling costs (say dealer margin/fees): $500
• Taxable income: $6,500, added to your other income and taxed at your marginal rate.

The two-year hold doesn't help — there's no holding-period exemption, and "I bought it as a hedge" doesn't rebut the presumption. The $6,500 goes on your IR3.

Common mistakes

• Treating gold as a tax-free store of value. IRD's QB 17/08 says the profit is income.
• Thinking a long hold or "hedge" motive exempts you. IRD has expressly said those reasons don't rebut the presumption.
• Forgetting to claim costs. You deduct the purchase price and selling costs — only the net gain is taxed.
• Assuming only physical metal counts. ETFs, units, CFDs and other metals are caught too.
• Not converting to NZD. If you bought or sold in another currency, the NZD figures are what go on your return.

What to do next

If you've sold gold or other metals at a profit, treat the net gain as income and put it on your IR3 — keeping records of what you paid, what you sold for, and your costs. TradeLog NZ helps you keep those records straight and convert them to NZD, and you can get a quick estimate of the tax with the free NZ trading tax calculator.

Worth reading next: do I pay income tax on crypto gains in NZ (same "no income while held" logic) and the full NZ trader tax guide.

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Do you pay tax on selling gold in New Zealand?

Generally yes. IRD's published view (QB 17/08) is that proceeds from selling gold bullion are taxable income, because gold earns nothing while held, so IRD presumes it was bought with a purpose of disposal. You deduct the cost of the gold and your selling costs, and the net gain is taxed at your marginal rate.

Is gold a tax-free investment in NZ because there's no capital gains tax?

No. The absence of a capital gains tax doesn't make gold tax-free. IRD treats the profit as income under the "acquired for the purpose of disposal" rule, and it has stated that holding gold as a long-term investment, inflation hedge, diversification or store of value is not enough to rebut that presumption.

Does the tax on gold apply to silver, platinum and gold ETFs too?

Yes. IRD notes the principles in QB 17/08 apply to the disposal of any non-income-producing asset, which brings in silver, platinum and palladium, as well as gold ETFs and units. Gold CFDs and futures are additionally caught by the financial arrangements rules, which also put them on income account.

Can I reduce the tax by holding gold for a long time?

No. New Zealand has no holding-period exemption — there's no length of time after which a gold gain becomes tax-free. What matters is IRD's presumption that you acquired it to sell, which a long hold doesn't displace. You can, however, reduce the taxable amount by deducting your purchase and selling costs.

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This article is general information only and does not constitute formal tax advice. Individual circumstances vary and tax laws change. Review with a qualified NZ tax accountant before filing. TradeLog NZ accepts no liability for errors in your tax return. For the official guidance, see IRD QB 17/08 on gold bullion.