Looking for our dealer site? Visit Jack Hunt Coin Broker »
Make an Appointment: (716) 874-7777     |     Contact Us

View historical precious metals price charts »

Tax Benefits of Bullion Purchases Over $1,000

tax free purchaseLooking to purchase metal bullion? You can save a significant amount by buying at least $1,000 worth. In New York state, if your purchase meets certain requirements, you will not pay sales tax on purchases of $1,000 or more for gold, silver, platinum, or palladium bullion items, including bars, coins, and rounds. This can save you nearly 9% in taxes, depending on where in the state you make your purchase.

The purpose of this tax exemption is to encourage investment in precious metals and to support the state’s position as a competitive marketplace for licensed bullion dealers such as Jack Hunt.

According to the NYS Department of Taxation and Finance TSB-M-89 (20)S:

Effective September 1, 1989, precious metal bullion sold for investment is exempt from state and local sales and compensating use taxes imposed under section 1115(a)(27) of the Tax Law, when certain specified conditions are met. “Precious metal bullion” means bars, ingots or coins of gold, silver, platinum, palladium, rhodium, ruthenium or iridium. However, such bullion does not include coins of the Republic of South Africa or bars, ingots of coins that have been manufactured, processed, assembled, fabricated or used for an industrial, professional, esthetic or artistic purpose.

Total: $1000.00

Requirements for Exemption

To qualify for the sales tax exemption on precious metal bullion purchases in NYS, certain conditions typically apply:

  • Minimum Purchase Amount: The purchase must exceed the designated threshold, which is often set at $1,000 but may vary depending on state regulations or local ordinances.
  • Price Dependent On Metal Value: The price paid for the bullion must depend only on the value of the metal content of the bullion.
  • Purchased From Registered Dealer: The retailer must be registered as a broker or dealer with the New York Department of State according to the provisions of section 359-e of the General Business Law. Jack Hunt is a registered dealer that fulfills this requirement.
  • Type of Bullion: The exemption exclusively applies to purchases of investment-grade bullion items, including bars, coins, and rounds made of gold, silver, platinum, palladium, rhodium, ruthenium or iridium. Collectible items, as well as jewelry, are not eligible for the exemption.
  • Intended Use: The bullion must be acquired with the intention of investment or speculation rather than personal consumption or use (i.e. melting gold to make jewelry). Items purchased for industrial or commercial purposes may not qualify for the exemption. According to TSB-M-89 (20)S, “Precious metal bullion is sold for investment when the aggregate sale under a single invoice totals more than $1,000.00 and the purchaser or user, or the agent of either, holds the bullion in the same form as when purchased, without manufacturing, processing, assembling or fabricating the bullion.”

Macro Close up of a Silver Canadian Maple Leaf Bullion Coin

What’s Not Included In Tax Exemption

If any of these conditions are not met, the sale may be subject to tax, according to TSB-M-89 (20)S:

Sales of bullion for greater than $1,000.00 that do not depend on the value of the metal content and sales of bullion for less than $1,000.00 are subject to tax regardless of the purchaser’s intent to hold the bullion as an investment. Any bullion purchased exempt under the new provision of law but later converted to self-use would be subject to $ sales or use tax, as the case may be.

Ready to get started on investing in precious metals? Reach out to the experts at Jack Hunt today.

We offer expert, no obligation evaluations:

Gold, Silver & Platinum

Coins & Currency


Holloware & Flatware

Sports Collectibles