July silver futures (SI=F) opened significantly higher this morning at $76.02 an ounce on Friday, up 4.6% from Thursday’s opening price. The price of silver fell slightly in early trading, reaching $75.96 at 7:04 a.m. ET.
Silver prices, like gold, are reacting positively this morning to the news that the United States and Iran have reached a tentative agreement to extend their ceasefire for 60 days. The extension of the truce is reportedly still pending the president’s signature.
An extension of the ceasefire is raising hope in markets that a full resolution to the war is not far behind. Investors of all stripes are eagerly awaiting the reopening of the Strait of Hormuz to end the seething inflation that has driven up prices in many countries around the world. The latest statements from Federal Reserve members make it almost certain that they will keep rates unchanged after their mid-June meeting.
Current price of silver.
The opening price of silver futures on Friday rose 4.6% compared to the opening price on Thursday. Here is how the opening price of silver has changed compared to the past week, month and year:
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A week ago: no changes
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A month ago: +4.2%
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One year ago: +131%
For context, silver’s year-over-year growth was 173.3% on May 14.
24/7 Silver Price Tracking – Don’t forget that you can monitor the current silver price on Yahoo Finance 24/7.
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Invest in silver? Here’s how to avoid taxes.
Do you have to pay taxes on silver? Yes. Silver is a capital asset, so when you sell it for more than you paid, the gain is taxable and reported on Schedule D of your federal return.
Many investors assume that holding silver for more than a year qualifies them to earn the same long-term capital gains rates as stocks (0%, 15%, or 20%).
Spoiler: It’s not like that.
The 28% collectable tax trap
The IRS classifies physical precious metals, including bars, rounds, and coins, as collectibles. That classification greatly changes the tax math.
Short term profits
If you hold silver for a year or less, your gains are taxed as ordinary income. Depending on your tax bracket, that could be as high as 37%.
Long term profits
If you hold silver for more than a year, your gain is taxed at your ordinary income rate, but no more than 28%.
Here’s what that looks like in real life:
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If you are in the 10%, 12%, 22% or 24% bracket, your silver gain is taxed at the same rate.
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If you are in the 32%, 35% or 37% group, you have a limit of 28%.
So if you’re a middle-income person used to paying 15% on stock earnings, silver may cost you more, maybe 22% or 24%, depending on your adjusted gross income.
If you’re in the upper brackets, the 28% limit is technically a discount to 35% or 37%, but it’s still higher than the maximum long-term capital gains rate of 20% in stocks.
That difference adds up quickly when you’re talking about five- or six-figure earnings.
More information: How to avoid taxes when investing in silver
Silver price chart.
Whether you’re following the price of silver from last month or last year, the silver price chart below shows the journey of the precious metal’s value so far this year.
More silver coverage from the Yahoo Finance team: