The “Buy, Borrow, Die”

The most effective way to retain ownership of your precious metals (gold, silver, etc.) while accessing liquidity to purchase real estate—without triggering capital gains taxes—is to borrow against the metals as collateral rather than selling them. This aligns with the “buy, borrow, die” strategy: you avoid realizing taxable gains now (loan proceeds are not income), pay interest along the way, retain the asset (and potential upside), and potentially eliminate the deferred gains via stepped-up basis for heirs upon death.Selling the metals would trigger capital gains tax (up to 28% for collectibles like physical bullion or gold ETFs held long-term). Borrowing defers this indefinitely, with no tax on the loan itself.Option 1: Physical Bullion or Coins (Most Common for “Hard” Assets)Use an asset-based lender specializing in precious metals collateral loans. These are designed exactly for this scenario—high loan-to-value (LTV) ratios, no credit check (since fully collateralized), secure vault storage, and you retain legal ownership.Top reputable providers (based on current offerings as of late 2025):

• JM Bullion Gold & Silver Loans
  • Loan amounts: $25,000–$5M+
  • LTV: Up to 75%
  • Rates: Low fixed, interest-only
  • Term: Typically 6 months, easily renewable; early payoff anytime
  • Storage: Segregated at Brinks or Loomis (insured)
  • Fees: Storage fee + no origination/prepayment
  • Other: Possible margin calls if metal prices drop sharply; funded in ~10 days or less
    → Excellent for pure bullion investors.
• Diamond Banc
  • Loan amounts: $1,500–$250,000+
  • LTV: 70–80%
  • Rates: Competitive (varies by deal/market)
  • Term: Flexible short-term
  • Storage: Fully insured, video-monitored facility
  • Key perks: Non-recourse (no personal liability beyond collateral), no margin calls, accepts jewelry/bullion/coins
    → Great for smaller loans or mixed items (e.g., jewelry + bullion).
• CFC Gold Loans
  • Very similar to JM Bullion (same backend infrastructure in many cases)
  • Loan amounts: $25,000–$5M
  • LTV: 75% (bullion), 65% (numismatic coins)
  • Rates: Low fixed, interest-only
  • Storage: UL-certified vaults (Loomis/Brinks), Lloyd’s insured, segregated
    → Strong for larger portfolios.

Other solid options: J. Rotbart & Co. (international/high-end), Borro (up to 70% LTV), or AU Bullion (Canada-focused but available).Process: Ship your metals (insured) or deliver in-person → Lender verifies/values → Funds wired → You pay interest-only → Renew or repay later (or roll indefinitely). Rates are typically higher than stock SBLOCs (expect 6–12% depending on size/market), but far better than unsecured loans.Option 2: If Your Metals Are Held via ETFs (GLD, IAU, SLV, etc.) in a Taxable Brokerage AccountUse a Securities-Backed Line of Credit (SBLOC) or pledged asset line from major firms (e.g., Charles Schwab, Morgan Stanley, Wells Fargo Advisors, Goldman Sachs, Interactive Brokers).

• LTV: Often 50–70% for gold ETFs (lower than physical bullion loans due to volatility).
• Rates: Very low (currently SOFR + 1–4%, so ~6–8% total).
• No scheduled repayment (interest-only, revolving).
• Draw funds as needed for real estate.

Advantages: Lower rates, no shipping/storage hassles, quick access.
Drawbacks: Possible margin calls if gold prices crash; many SBLOCs require somewhat diversified portfolios (pure GLD may get lower LTV or be restricted). Converting physical metals to ETFs now would trigger the very taxes you’re trying to avoid.Recommendations & Caveats

• For pure physical metals (most cases), start with JM Bullion, CFC, or Diamond Banc—they’re tailored for tax-deferral-minded bullion holders and explicitly market “liquidity without selling.”
• For multi-million-dollar holdings, wealth management arms (RBC, UBS, etc.) can arrange custom low-rate loans against vaulted metals.
• Use the loan proceeds for real estate → This works perfectly (cash is cash). Interest may be partially deductible if the real estate is investment property (investment interest expense) or if you structure carefully—consult a CPA.
• Risks: Interest cost eats into returns; price drops could trigger margin calls or force adding collateral; storage/insurance fees apply.
• This is not financial/tax advice—consult a tax professional and attorney familiar with your situation/jurisdiction. Structures can vary by state/country, and you’ll want to model net-after-interest returns vs. gold’s expected appreciation.

This borrow-against-it approach is exactly how the ultra-wealthy handle appreciated assets (stocks, art, real estate, etc.)—precious metals work the same way with the right lender.