Gold tends to perform well during during economic uncertainty and may gain value even when stocks decline. While you might assume investing in gold means buying and storing physical bars or coins, you don't actually need to see or touch gold to profit from it. Investors have several options for gaining exposure to gold.
How to invest in gold
You can buy physical gold and store it or explore other avenues to invest in gold. Let’s review some of the ways you can buy gold.
1. Buy physical gold
2. Invest in gold stocks
3. Invest in gold ETFs
4. Invest in gold mutual funds
5. Invest in gold futures
1. Buy physical gold
While there are many ways to invest in gold, the only way to gain ownership of gold is to buy it outright. While other methods of buying gold involve a firm holding the gold on your behalf, purchasing physical gold gives you more control.
Investors can choose from several types of physical gold, including coins, bars, bullion and jewelry. You can buy physical gold from various places, like jewelers, gold dealers, and even some banks.
You can even buy gold as part of a self-directed IRA, or purchase it outside of a retirement account.
Who invests in physical gold?
Physical gold tends to attract long-term investors who want a hedge against economic uncertainty and stock market corrections. This asset performs well during periods of inflation, making it appealing to those concerned about rising prices.
Investing in gold is also common among those planning for retirement or seeking to diversity beyond traditional stocks and bonds.
Risks of investing in physical gold
The main risks of investing in physical gold are theft, limited liquidity and storage costs.
Keeping gold at home increases the risk of theft. Many opt for a bank safe deposit box for added security — which can be an extra expense to consider. And unlike stocks or ETFs, physical gold isn't easy to sell instantly — it can take a few days to find a buyer, which may be an issue if you need cash quickly.
Storage fees can also eat into your returns. While gold investment firms pass these costs onto their clients, their bulk storage allows them to offer lower fees than what you'd typically pay on your own.
Pros and cons of investing in gold futures
Pros
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Gold futures can result in substantial returns
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Leveraged investing gives you greater exposure to gold
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Allows you to lock in a price for gold
Cons
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High volatility
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Futures can result in significant losses
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Not every brokerage firm offer futures trading
Where can you buy physical gold (Gold Bullion)?
Investors can buy physical gold from online gold exchanges, local gold sellers, and banks. It’s important to check the gold’s purity, authenticity, and weight before investing. You’ll have to protect gold on your own, typically with a bank-safe deposit box.
If you do business with an online gold seller, make sure the company is properly licensed. You can check online reviews and the company’s Better Business Bureau rating to gauge its legitimacy.
Our picks for buying physical gold
The leading gold and silver specialist makes it easy to buy physical precious metals. AHG’s featured products for its gold IRAs are the Gold American Eagle, Silver American Eagle, Gold Canadian Buffalo, and Silver Canadian Buffalo. Investors planning for retirement can set up Gold IRAs with AHG.
You can take advantage of the long-term market potential of this precious metal by starting a Precious Metals IRA with help from Thor Metals. Enabling investors to include gold or silver in their portfolio, a Precious Metals IRA can be a secure and stable investment option, enhancing diversification and safeguarding your cash value against economic uncertainties.
2. Invest in gold stocks
Many companies rely on the stock market to raise capital, including those in the gold industry. Many gold miners, precious metal streaming companies and gold royalty firms offer shares available on public exchanges. While these stocks are partly tied to the price of gold, their performance also depends on the financial health of the business.
For example, a gold mining stock may outperform the metal itself if the company gains market share or acquires valuable new mines. On the other hand, a poorly managed company with high debt and weak sales may underperform, even if gold prices rise. Gold stocks tend to have more correlation with the overall market than physical gold, though they're still less tied tot he S&P 500 than most equities.
Who invests in gold stocks?
Gold stocks appeal to investors who want exposure to gold without dealing with physical storage or limited liquidity. These stocks can potentially outperform the metal if the underlying company performs well. Some also pay consistent dividends, adding income potential to your portfolio.
Risks of investing in gold stocks
When you invest in gold stocks, you're not just buying exposure to gold, you're also buying into a company. If the company underperforms, loses market share or carries too much debt, your investment could lag behind the price of gold. Analyzing a company's financials adds a layer of complexity that physical gold doesn't require.
Pros and cons of investing in gold stocks
Pros
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High liquidity — easy to buy and sell quickly
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You don’t have to worry about storage or security
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Some gold stocks pay quarterly dividends
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Diversify your portfolio within a few minutes
Cons
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Gold stocks are subject to stock market fluctuations
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Some gold stocks underperform due to bad financials
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It takes more time to analyze gold stocks than physical gold
Where can you buy gold stocks?
You can purchase stocks through most major brokerage platforms. A market order lets you buy a stock at its current trading price, while a limit order only executes when the stock hits a price you've specified. These tools make it easy to manage your gold stock investments in real time.
Public.com is an online investment platform offering stocks, ETFs, crypto, and alternative assets like fine art and collectibles—all in one place and with very low fees. The company continues to innovate and add new investment features, making it a one-stop-shop for many investors. Follow along with our Public.com review to learn more about Public’s pricing, supported investments and much more.
Examples of gold stocks
Investors can choose from several gold stocks with varying performances. These are some of the gold stocks that are available:
- Barrick Gold: The Canadian-based company operates mines and projects in .18 countries across four continents.1
- Newmont: The gold mining company is based in Colorado and has an approximate dividend yield of 2.11% yield.2
- Agnico Eagle Mines: The Canadian-based gold producer has a dividend yield of close to 2%.
- Kinross Gold: The Canadian-based gold and silver mining company has been around since 1993.
- Eldorado Gold: The company operates gold mines in Turkey, Greece, and Canada.
3. Invest in gold ETFs
Gold exchange-traded funds (ETFs) give investors instant exposure to multiple gold-related stocks. You don’t have to guess whether Barrick Gold will outperform Newmont or if Kinross Gold will underperform — gold ETFs hold a basket of stocks that benefit from rising demand for gold, such as mining and royalty companies.
Investors can compare gold ETFs and their holdings by visiting a brokerage's website. Research platforms like Morningstar are also useful for evaluating ETF performance, expense ratios and stock compositions.
Who invests in gold ETFs?
Gold ETFs are ideal for investors who want the benefits of gold stocks, like liquidity and potential returns, without the time commitment of researching individual companies. These funds offer built-in diversification and lower risk compared to picking single stocks, making them a good option for those seeking convenience and balance.
Risks of investing in gold ETFs
Gold ETFs can still underperform the price of gold if the companies in the fund struggle. Even if the fund performs well, investors will pay an annual fee known as an expense ratio. This fee is automatically deducted from your investment, so you won't see a line item, but it can reduce your overall returns. Another downside: you can't pick and choose the fund's holdings, so you're stuck with the companies the ETF includes.
Pros and cons of investing in gold ETFs
Pros
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Gold ETFs offer instant portfolio diversification
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These ETFs reduce risk
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Buying gold ETFs doesn’t require as much time or research as buying individual gold stocks
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Gold ETFs are highly liquid and trade throughout the market day
Cons
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The expense ratio reduces your total returns
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You have no influence over the fund’s holdings
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Gold ETFs offer indirect exposure to gold, typically through gold-related companies rather than the metal itself
How to buy gold ETFs?
Investors can buy gold ETFs through most major brokerage platforms, the same way you'd buy individual stocks. However, not all brokerage firms offer proprietary gold ETFs. If that's the case, you can still invest in third-party gold ETFs through your preferred platform.
Our choice for buying gold ETFs
Robinhood makes it easy to buy gold ETFs and other investments like stocks and crypto. You can create a free account and start building your portfolio today.
Examples of gold ETFs
Investors can choose from several gold ETFs for exposure to the precious metal. These are some of the available options:
- SPDR Gold Trust (GLD): This fund has a 0.40% expense ratio and $90.01 billion in total assets as of March 2025.3 It offers direct exposure to gold without any of the mining stocks or other corporations. It has an annualized return of 11.85% over the past five years.4
- Sprott Gold Miners ETF (SGDM): This ETF has 35 holdings, with the top 10 holdings making up 66% of total assets. SGDM has a 0.50% expense ratio and an annualized 6.3% return over the past five years.
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VanEck Junior Gold Miners ETF (GDXJ): This fund has a 0.52% expense ratio and $5.6 billion in total assets. Its top three holdings are Kinross Gold, Alamos Gold, and Harmony Gold Mining. It has 88 equity holdings and an annualized return of 5.9% over the past five years.
Compare gold ETFs versus VOO performance over the past 5 years
Gold ETFs versus VOO over the past 5 years.
4. Invest in gold mutual funds
Gold mutual funds function similarly to ETFs by providing investors with exposure to gold, either directly or through a portfolio of gold-related companies. Both types of funds charge expense ratios; however, a key difference is that mutual funds execute trades once daily after the market closes, whereas ETFs trade throughout the day.
Who invests in gold mutual funds?
Gold mutual funds attract investors who seek the benefits of gold invesment without the need to manage physical assets or analyze individual stocks. These investors typically adopt a long-term, buy-and-hold strategy and prefer the simplicity of end-of-day trading, avoiding the intra-day volatility associated with ETFs.
Risks of investing in gold mutual funds
Investing in gold mutual funds carries risks similar to those of gold ETFs, including market volatility and management fees. Additionally, the inability to trade during market hours means investors cannot react immediately to intra-day price movements, potentially lading to losses if gold prices decline sharply during the trading day.
Where can you buy gold mutual funds?
Gold mutual funds are available through various brokerage firms that offer a range of investment products. Investors can place orders by entering the fund's ticker symbol; these orders are processed after the market closes. It's advisable to review each fund's prospectus for specific details on fees and investment strategies.
Examples of gold mutual funds
Investors can choose from several gold mutual funds that resemble gold ETFs. These are some of the highlights:
- Fidelity Select Gold Portfolio (FSAGX): The fund has $1.282 billion in total assets and a 0.70% expense ratio.5 It has an annualized 10.59% return over the past five years.6
- First Eagle Gold A (SGGDX): The fund has $748.2 million in assets and a 1.16% expense ratio.7 It has an annualized 8.54% return over the past five years.8
- Allspring Precious Metals Fund Class A (EKWAX): The fund has $371.8 million in assets and a 1.09% expense ratio. It has an annualized 9.0% return over the past five years.
Compare gold index funds versus VOO performance over the past 5 years
Gold index funds versus VOO over the past 5 years.
5. Invest in gold futures
Gold futures are contracts where a buyer and seller agree to exchange gold at an agreed-upon price on a future date. Each gold futures contract represents 100 ounces of gold. These contracts are traded on exchanges like the COMEX division of the CME Group. Due to their complexity and leverage, gold futures are primarily utilized by experienced traders and gold-related businesses.
If you’re new to futures trading, we’ve got you covered with this introduction to trading futures.
Who invests in gold futures?
Gold futures are suitable for traders with high risk tolerances and a deep understanding of the commodities market. The leverage inherent in futures contracts allows for significant potential gains, but also exposes investors to substantial losses. As such, gold futures may not be appropriate for most individual investors.
Risks of investing in gold futures
Investing in gold futures involves considerable leverage, meaning that even small price movements can lead to significant gains or losses. The gold market is subject to sharp price fluctuations influenced by economic indicators, geopolitical events, and changes in supply and demand. These factors can have a major impact on the value of futures contracts, making them a high-risk investment.
Pros and cons of investing in gold futures
Pros
-
Can result in substantial returns
-
Leveraged investing gives you more exposure to gold
-
Lock in a price for gold
Cons
-
High volatility
-
Futures can result in significant losses
-
Not every brokerage firm offers futures trading
Where can you buy gold futures?
Some brokerage firms that offer individual gold stocks, ETFs, and mutual funds also support gold futures trading. However, not all institutions provide access to futures markets, so investors may need to research and select a brokerage that offers this service. It's essential to ensure that the chosen broker is reputable and provides the necessary tools and resources for futures trading
Examples of gold futures
Investors can choose from several types of gold futures contracts:
- Standard gold futures: Contracts representing 100 troy ounces of gold.
- Micro gold futures: Contracts representing 10 troy ounces of gold.
Tips for investing in gold
There are a few tips you should know before investing in gold. These are the highlights:
- Decide your risk tolerance: Investing in gold futures can be risky, while ETFs can help spread out your risk.
- Do your research: If you decide to invest in a specific gold mining company, look into its performance over the last few years and whether it mines for other metals or resources.
- Start slow: Most people who invest in gold make it a small part of a diversified portfolio. Consider a wide range of investments.
- Ask for help: Don’t be shy to ask your financial advisor for input on whether gold would be a good addition to your portfolio.
Is gold a good investment?
Gold is often considered a reliable hedge against inflation and economic uncertainty. Historically, gold prices have risen during financial crises and periods of geopolitical instability. However, gold may not outperform growth stocks during bullish economic cycles. It caters to conservative investors seeking safeguards from economic volatility. Gold has been used for thousands of years and holds intrinsic value.
Is gold recession-proof?
Gold tends to outperform most assets during a recession. Its status as a high-value commodity gives it more resistance to economic downturns than other assets.
For instance, during the Great Recession, gold prices increased significantly, while the S&P 500 experienced substantial losses.
FAQs
Marc Guberti is a certified personal finance counselor and a freelance writer who resides in Scarsdale, New York. His work has been featured in US News & World Report, Newsweek, InvestorPlace, and other publications.
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