Silver (SI=F) July futures opened higher this morning at $76.02 an ounce on Friday, up 4.6% from Thursday’s opening price. The price of silver was slightly lower in early trading, reaching $75.96 as of 7:04 am ET.
Silver prices, like gold, reacted positively this morning to the news that the US and Iran had reached a tentative agreement to extend their suspension by 60 days. According to reports, the time to close the deal is still waiting for the signature of the president.
The extension of the end of the war gives hope to the markets that a full resolution of the war is not far behind. Investors of all stripes are eagerly awaiting the reopening of the Strait of Hormuz to stem the simmering inflation that has driven up prices in many countries around the world. Recent statements by Fed members all but confirmed that they will keep rates unchanged following their meeting in mid-June.
Current price of silver
The opening price of silver futures on Friday was up 4.6% compared to Thursday’s opening price. Here’s how the opening silver price has changed over the past week, month, and year:
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One week ago: unchanged
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One 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 you can monitor the current silver price on Yahoo Finance 24 hours a day, seven days a week.
Want to learn more about the current top performing companies in the silver industry? Check out the list of top performing companies using the Yahoo Finance Screener. You can create your own screens with over 150 different test criteria.
Investing in silver? Here’s how to avoid taxes.
Do you have to pay taxes on silver? Yes. Silver is a capital asset, so if you sell it for more than you paid, the gain is taxable and reported on Schedule D of your federal return.
Many investors think that holding silver for more than a year qualifies them for long-term cash rates like stocks (0%, 15% or 20%).
Spoiler: No.
28% tax is collected
The IRS classifies physical precious metals — including bars, rounds, and coins — as collectibles. That classification changes the tax calculations in a big way.
Temporary benefits
If you hold the silver for one year or less, your gain is taxed as ordinary income. Depending on your tax bracket, that can go up to 37%.
Long term benefits
If you hold silver for more than a year, your gains are 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 that rate.
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If you are in the 32%, 35% or 37% bracket, you are placed in the 28%.
So if you’re a middle-income earner who typically pays 15% in stock gains, silver could cost you more, maybe 22% or 24%, depending on your adjusted gross income.
In the upper bracket, the 28% rate is technically a discount compared to 35% or 37% – but it’s still higher than the stock’s long-term capital gain rate of 20%.
That difference adds up quickly when you’re talking five- or six-figure earnings.
Read more: How to avoid taxes when investing in silver
Silver chart value
Whether you’re tracking the price of silver from last month or last year, the silver price chart below shows the precious metal’s price journey so far this year.
More silver coverage from the Yahoo Finance team:
