Selling bullion in Salt Lake City and Denver: offers, tax and IRS reporting

What to take away

Market context for Salt Lake City and Denver

Salt Lake City sits close to major mining operations and hosts bullion refineries and dealers. A local dealer can move metal back into the supply chain quickly, which may help on common products.

Denver acts as a regional hub for bullion sales, with customers driving in from across the Rocky Mountains. Dealers there handle a wide mix of products and customer types, from first-time sellers to established collectors.

Neither market is guaranteed to pay more. Quotes depend on the dealer, the product and the day's spot price, so the only way to know is to collect written bids in both places.

Where to start: named buyers in each city

Public directories list established coin shops in both cities. These names are starting points for your own comparison, not recommendations, and we have not tested their bids.

Ask each for a written bid on your exact items. Check a local shop's record with the Better Business Bureau or the American Numismatic Association dealer directory before you drive out. For graded coins, national auction houses such as Heritage Auctions and Stack's Bowers Galleries handle numismatic material.

Dealer terms to check when selling

Government-minted coins and standard bars from major refiners usually get the tightest quotes anywhere. Odd-weight or heavily worn items may be priced as scrap.

Salt Lake City has refining capacity close by. Asahi Refining runs a precious metals plant in the city, and Rio Tinto's Kennecott operation at Bingham Canyon produces gold and silver alongside copper. Denver has no refinery on that scale, and the United States Mint's plant in Denver strikes coins but does not buy bullion from the public. Distance to a refinery may show up in freight and assay costs, so ask.

Many shops quote buybacks against the current spot price minus a percentage. That percentage covers refining, assay and resale costs.

Ask whether the quote is locked or subject to assay. A locked quote protects you if metal prices move during the transaction. An assay-dependent quote can change after the dealer tests the metal.

Some dealers will buy back anything they sold, sometimes at a preferential rate. If you bought locally, mention it. That history can improve your offer and speed up verification.

Our small silver position case shows how a seller weighs convenience against price, and the guide to bullion sale channels compares the other routes.

A dealer who specializes in what you hold may pay more than a generalist. Ask how assay is handled and whether testing carries a fee. Some dealers absorb testing costs on standard products and pass them on for unusual items. Get the answer before you hand over the metal.

Settlement and payout methods vary. Smaller shops may pay by check or bank transfer within a few business days. Larger dealers may offer same-day payment on smaller amounts, then hold funds while larger payments clear.

If your bullion has numismatic value, a straight buyback may not be the best route: a private sale or auction can net more, though it takes longer. The bullion formats guide covers how product format affects resale.

IRS reporting when selling in either city

Federal reporting rules apply the same way in Salt Lake City and Denver. Your location does not change them.

Dealers must report certain bullion transactions to the IRS on Form 1099-B. Under the IRS instructions for Form 1099-B, a sale is reportable only when it meets the minimum quantity of a futures contract approved by the Commodity Futures Trading Commission. Sales to one customer within 24 hours are added together.

Dealer guides often cite minimums such as 25 one-ounce gold coins of listed types or 1,000 ounces of silver in bars. Those figures follow the contract sizes and can change, so ask the dealer whether your sale triggers a form. A single coin sale usually falls below the minimum.

When a dealer files a report, you receive a copy. That does not automatically mean you owe tax. It means the IRS has a record of the gross proceeds. Your cost basis determines the actual gain.

Separately, a dealer that receives more than 10,000 dollars in cash in a transaction files Form 8300. That rule covers cash a dealer takes in, not a payout to you. See Form 1099-B and Form 8300 reporting for how the two differ.

Keep your purchase receipts. If you bought bullion years ago and cannot find the paperwork, you can request tax records and transcripts from the IRS to help document your basis and prior filings. That documentation matters more than the reporting threshold itself when you calculate what you owe.

You report the gain yourself on Form 8949 and Schedule D whether or not a dealer files a form. Silver, gold and most bullion coins are collectibles, so a gain on metal held more than a year is taxed at your ordinary rate up to a maximum of 28 percent. Our guide to Form 8949 for physical metal sales walks through the steps.

Utah and Colorado sales tax and income tax on bullion

Sales tax and sale proceeds are different things. Sales tax is charged to a buyer on a retail purchase, so a seller handing metal to a dealer generally does not pay it out of the proceeds. Check the dealer's invoice to confirm.

Utah exempts precious metal bullion from state sales tax under Utah Code 59-12-104. The exemption covers legal-tender coins and non-legal-tender bars, ingots and medallions that are mostly gold, silver or platinum. Palladium bullion is not covered. Confirm the current text with the Utah State Tax Commission before a large sale.

Colorado also exempts coins and precious metal bullion from state and state-administered local sales and use tax, under C.R.S. 39-26-706. Jewelry and commemoratives remain taxable. The Colorado Department of Revenue's topic page on coins and precious metal bullion sets out the rule.

Denver is a home-rule city that administers its own sales tax, so confirm with the city before assuming its treatment matches the state. For how other states handle the question, see how sales tax on bullion works in Texas, California, New York and Florida.

The tax that does reduce what you keep is tax on your gain. Both Utah and Colorado tax income at flat rates and collect no separate bullion-gain tax, so a gain is generally included in state taxable income. Check your state return or a tax professional for the current rate.

Ask the dealer how the transaction will be coded for tax purposes. A written invoice that shows the tax treatment protects both sides. State rules can change, so check the current statute before you sell a large position.

Comparing offer terms: spreads, fees and settlement times

Quotes vary by dealer, product and market conditions. Use the table to organize the questions, then fill in each dealer's written answers.

Worked example with assumed numbers, not a quote: assume spot gold at $2,400 an ounce and ten one ounce coins, or $24,000 of metal.

Say one dealer bids 3 percent below spot and charges no assay fee. That pays $23,280. Another bids 6 percent below spot and charges $50 for assay, which pays $22,560 minus $50, or $22,510. The first quote nets $770 more in this example, whichever city each dealer is in.

Spreads are not the only cost. Assay fees, shipping if you sell remotely, and payment holds all affect your net. A slightly wider spread with no fees can beat a tight spread with deductions.

Settlement speed matters if you need funds quickly. A same-day payout at a slightly lower price may be worth more than a higher price paid next week.

Understanding spot, premium, spread and how each is set helps you judge whether a quote is fair. The same pricing logic applies in both cities, but local competition shapes the final number.

Documents to bring when selling in person

Come prepared. Missing paperwork is the most common reason a buyback takes longer or pays less.

Missing paperwork costs more than a spread difference. Without receipts and original packaging, a dealer may require assay, add a fee, and hold payment until results clear. In the example above, if the dealer who bid 3 percent below spot also charged a $50 assay fee, the $770 advantage would shrink to $720, and a hold of three business days would delay the money without changing the amount. Fees only erase a gap when the gap is small.

Before you go, review bullion marking problems so the items are clean, organized and ready for inspection. For a broader walkthrough, see the guide to bullion break-even calculation.

How to choose between offers

Start with the product. If you hold standard government coins or widely traded bars, both markets can serve you well. If you hold unusual items, look for a specialist.

Get at least three quotes. In Salt Lake City, that may mean calling most of the established shops. In Denver, you have more options, so use them. Add one national buyer as a floor. Our guide to selling and transferring physical metals covers the records and handoffs.

Compare net proceeds, not headline prices. Subtract assay fees, shipping and any tax cost. The dealer with the higher quoted price may not be the one with the higher net.

Consider timing. If you need funds quickly, prioritize settlement speed. If you can wait, a consignment or auction route may pay more for rare pieces.

Check the dealer's reputation. The Better Business Bureau, the American Numismatic Association and the Industry Council for Tangible Assets all maintain resources that can help you vet a buyer.

Finally, confirm the tax treatment in writing. A few minutes of paperwork now prevents a surprise later.

Common questions