How to invest in gold in 7 steps

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For thousands of years, gold has been a valuable asset. Today, it's still used to create jewelry, for manufacturing, and to support economies. Because it tends to hold value (even when the economy is shaky), it's an appealing investment.

In recent years, its value has significantly increased. In January 2021, the price of gold was $1,907 per ounce. By the end of 2025, its price had risen to $4,389 per ounce, a massive increase.

With such a huge spike, many investors are considering putting their money into gold, but aren't sure where to start. Continue reading to learn how to invest in gold.

As of March 30, 2026, gold's price was over $4,500 per troy ounce.

As a new investor, you can invest in physical gold coins or bars, exchange-traded funds (ETFs), stocks, or even through a retirement account.

In general, experts recommend putting no more than 15% of your portfolio into gold.

Gold has different levels of pricing. Three to know are the spot price, the spot price plus the gold premium, and the gold futures price.

Gold spot price. The gold spot price applies to physical gold, sold wholesale or as a raw material. The spot price represents the value of one troy ounce of pure physical gold for immediate delivery. A troy ounce is a precious metals measurement that’s slightly heavier than a standard ounce.

Gold spot price plus the gold premium. Finished gold, such as coins, bullion, or jewelry, is priced above the spot price. The markup on the spot price is known as the gold premium. It covers things like marketing and profits for dealers and refiners.

Gold futures price. The futures price applies to contracts between gold buyers and sellers. These contracts require the buyer and seller to trade gold for cash at a future date for a specified price. As with the spot price, the futures price represents one troy ounce of gold.

As a new gold investor, you have multiple investment options available:

Physical gold is one of the most popular options for beginners. You can purchase gold coins or bars, and hold your investment in your hand.

In general, new investors should focus on standard bullion gold, meaning gold that meets certain purity standards. Qualifying gold bullion is 99.5%, and includes:

If you plan to buy large amounts of physical gold, make sure you have a plan in place for storing it safely (either at home or in a private vault) and insuring it.

An exchange-traded fund (ETF) is an investment made up of a mix of assets, such as stocks or bonds. Gold ETFs track the prices of gold or gold-related stocks and are traded on the major stock exchanges. For example:

SPDR Gold Shares (GLD): This ETF reflects the performance of the price of gold bullion. It was the first U.S.-traded gold ETF.

iShares Gold Trust (IAU): Like GLD, this ETF reflects the performance of gold's price.

ETFs provide convenient, cost-effective access to the gold market, and they can be bought and sold during trading hours.

A gold individual retirement account (IRA) is a specialized retirement account that allows investors to hold physical gold within a tax-advantaged retirement plan. With a gold IRA, you can invest in gold coins or bars, but the gold must be held by an approved custodian.

Read more: Gold IRA: Benefits, risks, and how it differs from a traditional IRA

Similar to ETFs, gold mutual funds allow you to invest in a group of gold-related stocks, providing instant diversification. For example:

First Eagle Gold Fund A Shares (SGGDX): This fund puts at least 80% of its net assets into gold or gold-related securities, such as gold mining finance companies.

Fidelity Select Gold Portfolio (FSAGX): This fund puts its assets into companies that are engaged in mining, processing, or dealing in gold.

An alternative to investing directly in gold is to invest in gold mining companies. You can buy and sell shares of individual stocks of mining companies like the Newmont Corporation (NEM) or the Barrick Mining Corporation (B).

Buying individual stocks is usually riskier than investing in ETFs or mutual funds since you're putting your money into one company, but there is also the potential for higher returns.

Gold futures (GC=F) are an investment option for more advanced investors. They're contracts that allow you to buy or sell gold at a predetermined price on a future date. They can produce impressive returns, but they're complex and risky.

If you're ready to invest in gold, you can get started by following these seven steps:

First, decide what kind of investment you want to make:

Physical gold is best for those who want to have a tangible asset and are investing for the long-term.

Gold ETFs, mutual funds, or stocks are best for those who want exposure to gold, but want the liquidity and convenience of the stock market.

Gold IRAs are best for those who want a tax-advantaged retirement account for their gold.

Your portfolio should be a mix of stocks, bonds, and cash or physical assets. Gold should make up a small percentage of your overall portfolio. How much of your portfolio should be allocated to gold depends on your unique situation and risk tolerance, but you shouldn't allocate more than 15% of your money to gold.

Set a budget for investing in gold, only dedicating an amount you can invest for the long-term. You can buy shares of stock, fractional shares, or purchase whole coins or gold bars.

In general, stocks, ETFs, and mutual funds have the lowest entry points for new investors. Depending on the fund and your brokerage, you could begin investing with as little as $5. By contrast, you'd need about $5,500 to buy one American Gold Eagle one-ounce coin.

Where you buy gold depends on the investment type. You can purchase physical gold through bullion dealers or coin shops, but gold ETFs, mutual funds, and stocks can be bought through brokerage accounts. (Heck, you can buy gold bars at Costco!)

Costs vary based on investment. With physical gold, you'll have to pay a dealer premium for the coins or bars, and you may have shipping and storage costs.

For ETFs and mutual funds, these are expense ratios, and stocks involve brokerage trading fees.

With physical gold, you need to protect your investment with proper storage and insurance. You could purchase a safe for your home or store your gold in a bank safe deposit box or a professional storage facility. And, you may need to add an insurance endorsement to your homeowners insurance or purchase a separate insurance policy to protect your gold holdings.

Gold can be volatile in the short-term, with rapid price swings. Gold is best suited for long-term investing, so plan to leave your gold untouched for several years as a wealth-preservation tool.

Gold has been a popular investment for centuries. In modern financial markets, there are several factors driving its popularity:

It acts as a hedge against inflation: When inflation rates rise, your purchasing power declines. While the value of your currency may drop, gold tends to retain its value, and its price often increases during periods of high inflation.

It provides protection during economic uncertainty: When the stock market fluctuates or geopolitical tensions rise, investors turn to gold as a more stable investment.

Its supply is limited: There is a finite supply of gold available, which supports long-term demand.

Historically holds value: Over the long term, gold has held or increased its value.

Tangible asset: Gold is a tangible asset with a finite supply, so there is less of a risk of devaluation than you have with cash.

Widespread demand: Besides its use for jewelry or investors, gold is also used in manufacturing, so there's a strong demand for it.

Lack of liquidity: With physical gold, you have to find a buyer at your desired price to sell your gold, which can take time.

Outperformed by the stock market: While gold's performance has been impressive, it pales in comparison to the performance of the stock market. Putting the majority of your money into gold rather than stocks could cause you to lose out on market growth.

Doesn't produce interest or dividends: Unlike some investments, like some stocks or bonds, gold doesn't pay out interest or dividends; you only profit from it when you sell it for more than its purchase price.

While gold is an alternative investment option, your gold is still subject to taxation. How it's taxed depends on the type of investment:

Physical gold: The IRS considers physical gold to be a collectible. When you sell your gold, you'll have to pay a maximum long-term capital gains rate of 28% (assuming you held the gold for at least one year). If you had it for less time, the tax rate jumps to a maximum of 37%.

ETFs, mutual funds, and stocks: Gold ETFs, mutual funds, and stocks are taxed using the standard capital gains tax rules.

Gold IRAs: Gold IRAs have some tax advantages, such as tax-deferred growth. However, they are still subject to the same rules as regular IRAs, including early withdrawal penalties if you withdraw money before you reach age 59½ and required minimum distributions (RMDs).

Read more: Gold has been on a run all year. Here’s how to avoid a tax hit.

Even though gold can be a useful tool for diversifying your investment portfolio, there are some mistakes you should be aware of so you can protect your money:

Physical gold requires secure storage, either in a safe bolted to the floor of your home or a private vault facility. These storage options require added costs, and you may need to purchase additional insurance to protect your gold.

Gold dealers sell many forms of gold coins or bars. Some types of gold are collectible or limited edition coins, but their gold purity may vary. Gold investors should stick to standard bullion products.

Gold is best as a complement to the rest of your investment portfolio. Gold should only make up a small percentage of your investments, with the rest of the portfolio put into a mix of stocks, bonds, or real estate.

Beginners often start by purchasing physical gold coins through a reputable gold dealer or by purchasing gold ETFs.

The price of gold was $1,250 in 2016, so $1,000 would have bought 0.8 ounces of gold. Today, that amount of gold would be worth $4,080.

The best way to invest in gold depends on your goals. Many investors prefer ETFs or mutual funds because of their convenience and liquidity, while some investors prefer physical gold bullion or coins since they're tangible.

As of March 11, 2026, gold was about $5,100 per ounce, so $1,000 would buy approximately 0.2 ounces of gold.

Investing in gold can be risky due to price volatility and lack of liquidity. Physical gold also involves added storage and insurance costs.

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