“However, gold shouldn’t be in the higher tax collectible category vs. normal capital gains like most investments.”
How about no tax!
100 oz bullion triggers 1099-B
25 1 oz gold coins triggers a 1099-B.
And LT holdings are capped at 28%.
Only if every other investment is tax free. Gold shouldn't be treated as special just because it is real shiny unlike Apple stock which is paper. Once you declare one investment as special, then every interest group wants theirs tax free and will rent representatives and senators (they can only be rented because they aren't honest enough to stay bought) to get their way.