Giving Gold or Silver as a Gift: Gift Tax, Cost Basis, and the Paperwork That Matters

Handing someone a tube of silver Eagles or a one-ounce gold bar takes about five seconds. The tax consequences can run for decades, and most of them land on the person receiving the gift, not the person giving it.

The good news is that, for most families, a gift of metal will never produce a dollar of gift tax. The part that actually costs people money is the recipient's cost basis: the number they will need years later to figure their gain when they sell. That number comes from you, the giver, and if you do not write it down, it may be gone for good.

This is general information about federal tax rules as of October 2026, not tax or legal advice. Confirm your own situation with a tax professional before you act.

Two different taxes, two different people

Gifting metal touches two separate parts of the tax code, and it helps to keep them apart.

• Gift tax is the donor's concern. Per the IRS gift tax FAQ, “the donor is generally responsible for paying the gift tax.”
• Capital gains tax is the recipient's concern. It applies when the recipient eventually sells, and it is calculated using the basis they received from you.

A gift that triggers no gift tax at all can still carry a large built-in gain to the recipient.

The 2026 numbers

Under the IRS's What's New page for estate and gift tax, last updated in July 2026:

• Annual exclusion: $19,000 per recipient for 2026, unchanged from 2025. You can give up to that amount to any number of different people in a calendar year without using any of your lifetime exemption.
• Basic exclusion amount: $15,000,000 for 2026. This is the lifetime amount that can pass free of gift and estate tax combined. The increase came from Public Law 119-21, signed July 4, 2025. The IRS calls it the Working Families Tax Cuts Bill. Most press coverage calls it the One Big Beautiful Bill Act.

Going over the annual exclusion for one person does not mean you owe tax. The excess counts against your lifetime amount, and you report it. Actual gift tax is owed only once lifetime taxable gifts exceed the basic exclusion amount.

When you have to file Form 709

The gift tax return is Form 709. Based on the current instructions, you generally have to file if any of these apply:

• You gave more than the annual exclusion amount to any one person other than your spouse during the year.
• You gave a gift of a future interest (something the recipient cannot use or enjoy right away, such as many trust gifts), in any amount.
• You and your spouse want to split gifts (see below), in any amount.

The return is generally due April 15 of the year after the gift. An extension of your income tax return also extends Form 709, but it does not extend the time to pay any gift tax owed. Spouses cannot file a joint gift tax return; each files separately.

Here is a typical scenario: a parent gives an adult child a 1-ounce gold coin and some silver rounds worth a combined amount below $19,000 in 2026, and no other gifts to that child. That gift is fully covered by the annual exclusion, and no Form 709 is needed for it. Raise the value above $19,000 and the parent files a 709, even though no tax is due.

Gift-splitting between spouses

Married couples can elect to treat a gift made by one spouse as made half by each. That effectively doubles the annual exclusion for that recipient, to $38,000 in 2026. Per the Form 709 instructions, the requirements include:

• Both spouses consent, and the consenting spouse's signed Notice of Consent goes on the donor's return.
• You were married to each other when the gift was made. If divorced or widowed later in the year, neither of you remarried during the rest of that year.
• Neither spouse was a nonresident who was not a U.S. citizen at the time of the gift.

Splitting requires filing Form 709, regardless of the amount. A couple who hands a child $30,000 of bullion and assumes “we each get $19,000” has the right idea, but it only works if the election is made on a return.

The IRS FAQ also notes that when spouses jointly own the property being given, each spouse is treated as giving their share, which can produce the same $38,000 result.

Carryover basis: you hand over your cost, too

This is the rule that matters most for metals.

Under IRC § 1015(a), the recipient's basis in gifted property is generally “the same as it would be in the hands of the donor.” In plain terms: the recipient steps into your shoes. If you bought gold years ago at a low price, the recipient inherits your low basis and the gain that comes with it.

Consider a hypothetical. A grandparent bought 10 ounces of gold for a total cost of $4,000 decades ago and gives the coins to a grandchild when they are worth $40,000. The grandchild's basis for figuring gain is $4,000. If the grandchild later sells for $45,000, the taxable gain is $41,000, not $5,000.

The dual-basis rule when metal is worth less than you paid

Metals prices fall as well as rise. If the fair market value on the date of the gift is lower than your adjusted basis, the recipient ends up with two bases. Per IRS Publication 551:

• For figuring a gain, the recipient uses your adjusted basis.
• For figuring a loss, the recipient uses the fair market value on the date of the gift.
• If the recipient sells for a price between those two numbers, there is neither a gain nor a loss.

The practical effect: you cannot hand a built-in loss to someone else. Consider silver bought for $10,000 and given when it is worth $7,000. If the recipient sells for $6,000, the reportable loss is $1,000 (measured from $7,000). If they sell for $8,000, there is no gain or loss at all. If they sell for $11,000, the gain is $1,000 (measured from $10,000).

This is why the date-of-gift value matters even when no Form 709 is required. Without it, the recipient cannot apply the loss rule.

Gift tax paid can add to basis

If gift tax is actually paid, Publication 551 lets the recipient add to basis the part of the tax attributable to the property's net increase in value. At 2026 exemption levels, this rarely applies.

Holding period: the clock usually transfers too

Long-term treatment requires holding an asset for more than one year. When the recipient's basis is figured by reference to the donor's basis, IRC § 1223(2) lets the recipient count the donor's holding period as well. If you held the coins for ten years, the recipient generally starts with ten years.

There is one wrinkle. When the dual-basis rule applies and the recipient's loss is measured from the date-of-gift value rather than your basis, the holding-period result can be different. That is a narrow case, but it is one to raise with a tax professional if you are gifting metal that has dropped in value.

The collectibles rate does not go away

Long-term gains on bullion are not taxed like long-term gains on stock. Under IRC § 1(h), gains on collectibles held more than one year are taxed at a maximum 28% rate. The definition of collectibles comes from IRC § 408(m), which includes “any metal or gem,” and § 1(h) applies that definition without the IRA bullion exception. In other words, coins and bars that are IRA-eligible are still collectibles for capital gains rate purposes, a point the IRS restated in Notice 2023-27. The IRS's Topic 409 states the 28% maximum for collectibles.

A gift does not change the character of the asset. The recipient who sells gifted bullion after the combined holding period passes one year is generally looking at the collectibles rate on the gain, with the actual rate depending on their own income. For how the rate interacts with your bracket, see our 2026 capital gains guide.

Valuing the gift: what “fair market value” means for metal

Both the Form 709 (when one is required) and the dual-basis rule depend on the value on the date of the gift. The gift tax regulation, Treas. Reg. § 25.2512-1, defines value as the price at which property would change hands between a willing buyer and a willing seller, neither under compulsion and both with reasonable knowledge of the relevant facts. Value is not what a forced sale would produce.

The same regulation says that for items generally obtained by the public in the retail market, value is the price at which the item or a comparable item would be sold at retail. How that sentence applies to bullion, which trades with a visible gap between what dealers pay and what they charge, is not spelled out in the regulation. Ask your tax professional which reference point to use, and use it consistently.

What you can control is documentation. For each gift, record:

• The date of the gift and the exact items (type, weight, purity, year and mint mark for coins, serial numbers for bars).
• A spot price reference for that date from a published source, saved as a screenshot or printout.
• A dated dealer quote for the specific items, both the buy price and the sell price if you can get them. These show the range a willing buyer and seller would face.
• An appraisal for numismatic or graded coins. Their value is driven by rarity and grade, not just metal content. The Form 709 instructions treat a qualified appraisal, or a detailed description of how value was determined, as part of adequate disclosure when a return is filed.

Gifts to minors

Metal given to a child usually ends up held for the child by an adult. Under a state's Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA), a custodian manages the property until the child reaches the age set by state law, at which point it becomes theirs outright. Revenue Ruling 59-357 has long been cited for the position that transfers to a custodian under these acts can qualify for the annual exclusion even though the child does not have immediate use of the property.

Three general cautions:

• The gift is irrevocable. Custodial property belongs to the child.
• Physical metal in a custodial account raises practical questions about where it is stored and who controls access. See our storage guide.
• State rules differ on the age of transfer and what custodians may hold. Check your state's statute or ask a local attorney.

Gift now, or leave it at death?

This is where gifting and inheriting part ways. Property passed at death generally gets a basis equal to fair market value at the date of death, which can erase decades of built-in gain. A lifetime gift carries over the donor's basis instead. For metal with a large unrealized gain, that difference can be significant. We cover the inheritance side in our guide to inheriting gold and silver.

That does not make one path right. People give during life for reasons a tax calculation does not capture. The point is to choose knowing the basis consequence, not to discover it at sale.

When the recipient sells

When the recipient sells, whether the dealer issues a Form 1099-B depends on the specific item and quantity under the broker reporting rules, not on whether the metal was a gift. We cover those rules, including the IRS's recent correction to its coin example, in our 1099-B reporting article. Either way, the recipient reports the sale and needs a basis to report. If the recipient cannot document basis, they may face a dispute over what it was, and in the worst case could end up treating far more of the proceeds as gain than they should.

A documentation checklist

Put this in an envelope with the metal, or in a shared file the recipient can find:

• A signed, dated gift letter stating what you gave and that it is a gift.
• Your original purchase invoices or receipts showing date, items, and cost. If you no longer have them, write down what you remember, how you know it, and any bank or card records that support it.
• Your date-of-gift valuation records: spot reference, dealer quote, and any appraisal.
• A copy of Form 709 and the Notice of Consent, if you filed one or split the gift.
• For custodial gifts, the account or custodial designation and your state's UTMA/UGMA reference.
• Item descriptions detailed enough to match the metal to the paperwork: serial numbers for bars, and year, mint, and grade for coins.

The paperwork is what keeps the recipient from overpaying tax later. Before you give, confirm the details with a tax professional who can look at your full picture.

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