New Jersey to Eliminate Sales Tax on Precious Metals in 2025
Starting January 1, 2025, New Jersey will join 44 other U.S. states in eliminating sales tax on purchases of gold, silver, and other precious metals exceeding $1,000. The move reinforces the constitutional recognition of gold and silver as legitimate forms of payment. This change aligns with the principle that sales tax should apply to consumer goods, not to precious metals, which are typically purchased for investment and savings rather than consumption.
Proponents of the tax removal argue that imposing sales tax on precious metals drives business out of state, as buyers often turn to neighboring states with more favorable tax conditions. Additionally, the tax has been seen as unfair to savers who acquire precious metals as a way to protect their wealth. In contrast, there are no sales taxes on purchases of stocks, bonds, currencies, or ETFs in New Jersey.
Despite this progress, the $1,000 threshold could still disadvantage smaller investors, limiting their ability to benefit from the tax relief.
In terms of investment trends, a survey in 2024 revealed that in Germany, current accounts were the most common form of savings, followed by savings accounts and deposits. Gold remains a popular investment choice, with 61% of Germans holding gold in various forms, including bars, coins, and jewelry. In France, by comparison, only about 4% of financial savings are held in gold.
For those interested in diversifying their investments, royalty companies offer a different approach. Gold Royalty operates across North and South America and anticipates revenues of $13 million to $14 million in 2024. Osisko Gold Royalties, focusing on gold and copper, maintains a strong presence in North America.
