Does the irs track gold sales?

Instead, sales of physical gold or silver must be reported on Schedule D of Form 1040 of your tax return. However, the IRS considers physical quantities of metal to be “collectibles.” For collectibles, such as coins, works of art and ingots, the standard tax rate is 28%. As a result, owning physical gold or owning funds that in turn hold physical gold means you can pay a higher maximum capital gains rate of 28%. And since gold is an investment asset, when you sell your gold and make a profit, it's taxed as capital gains.

Don't fund your precious metals IRA with fractionated gold or silver, as they are also unnecessarily expensive.