Bullion, including bullion that has been made into gold or silver coins, is subject to Tennessee sales and use tax. Tenn. Code Ann. § 67-6-202(a) provides that the retail sale of tangible personal property is subject to the Tennessee sales and use tax.
Additionally, the Tennessee Supreme Court has also previously concluded that when bullion is exchanged for its intrinsic value as a precious metal, the exchange is a sale of tangible personal property and subject to the sales and use tax. Bullion in the form of coins comes under this court decision because collectible coins are not legal United States currency. The difference between buying collectible coins and obtaining U.S. coins (quarters, nickels, dimes, etc.) is that you do not actually purchase the quarters, nickels, and dimes. Instead, you are exchanging one form of legal currency for another. With collectible gold or silver coins, you are actually buying the coin instead of exchanging forms of legal currency.