What’s the Best Way To Invest in Gold?

It can be difficult to know where to begin and how to make good decisions when you are new to investing in gold. Gold is primarily bought by investors as a hedge to inflation and as a means of diversifying their portfolios. There are many ways to invest in gold, including:

  • Gold IRA investment
  • Gold coins and bullion
  • Gold Exchange-Traded Funds (ETFs).
  • Gold mutual funds
  • Gold mining companies
  • Gold Futures

What is the best option to invest in Gold? You can either invest directly in gold or indirectly through stocks with indirect links to gold's value, depending on which method you choose.

This article will highlight the most popular ways to invest in gold and the advantages, risks, and disadvantages of each. You'll find examples of gold investment companies that offer each type to get you started.

IRAs: How to Use Your IRA

You can invest in gold by using your retirement funds to buy a certain amount physical gold that an IRS-approved depositary will store for you until the time comes to liquidate it.

You can buy gold using an IRA if you have a self directed account. This could be a Roth IRA or a traditional IRA. You will also need to find a custodian for your gold, which can be a bank or credit union.

Risk Level

Gold IRAs are similar in risk to gold itself. The value of the gold varies and is unpredictable. Gold's value, unlike stocks, does not have the possibility of dropping to zero. Gold's value tends to rise when other assets fall, which helps you maintain a balanced portfolio.


Investing gold in an IRA provides you with the benefits that come along with precious metal investments. The ability to protect against inflation is one of the most important benefits. Gold is also safer than bonds or stocks because its value can't go to zero.

You can also get tax benefits by using an IRA. Either pay taxes upfront on your contributions or defer them until after retirement when you begin receiving distributions.


Gold IRAs are typically more expensive than regular IRAs. These fees include:

  • Brokerage fees
  • Storage charges
  • Account Setup Fees
  • Insurance

You may also need to sell gold at a lower value when you retire and begin taking distributions from an IRA. This is because it can be difficult to find a buyer.

Companies that Offer These

Here are the top gold IRAs you can trust to invest in:

Gold Bullion and Coins Investing

You probably picture stacks of heavy, shiny gold bars when you consider purchasing physical gold. Gold bullion is the name given to these valuable bars. They come with a certificate of purity and weight.

Gold coins such as American Gold Eagles or Canadian Maple Leafs are also available in physical form.

Risk Level

Gold bullion prices rise and fall with the value of the metal, so they tend to go up during times of economic instability but down when things are going well.

Physical gold, particularly large gold bars, is not liquid, so you may find it difficult to sell them quickly and end up paying less for your gold.


Gold will always be valuable as a form of currency, even if your other assets suddenly become worthless. In times of economic uncertainty, purchasing physical gold is a good way to protect your assets.


You're responsible for keeping your gold safe. This can be in a safe at home, in a bank vault, or in a storage facility. Gold bullion can be expensive to store, especially if you add insurance to the mix.

Gold is more difficult to sell in physical form than in stock, and will not provide passive income over the long-term like stocks would.

Companies that Offer These

These are the top companies selling gold bullion.

  • American Precious Metals Exchange
  • JM Bullion
  • Gold Eagle Coins
  • SD Bullion
  • Orion Metal Exchange

Gold ETFs

fine gold bar and gold price chart

If you do not want to deal with physical gold, then a gold ETF is the best option. Gold ETFs allow you to access a larger portion of the gold market. They operate like mutual funds where an advisor manages them for the shareholders.

Gold ETFs can be bought and sold the same as standard stocks, because each share represents an amount of gold that is fixed. For example, one gram.

Risk Level

Due to the fact that gold ETFs do not involve the ownership of the metal itself, their value can differ from gold's price. Gold ETFs are volatile and their value fluctuates with the price of gold.


The low expense ratios of ETFs make it easier and cheaper to invest in gold than buying physical gold. You will not have to worry about paying additional fees, or where to store your gold assets.

Gold ETFs are more liquid than stocks because they work the same way.


It can be hard to find ETFs that invest only in gold, as most funds deal with commodities. ETFs are great for diversifying your portfolio because of this same reason.

Companies that Offer These

Here are some of the best-performing gold ETFs on the stock exchange:

  • SPDR Gold Shares (GLD)
  • VanEck Vectors Gold Miners (GDX)
  • iShares Gold Trust IAU
  • Goldman Sachs ETF Physical Gold (AAAU)
  • GraniteShares Gold Trust BAR

Gold Mutual Funds

three human icon surrounding dollar sign

Gold mutual funds are another way of getting the benefits of gold without having to buy and own gold bars or coin. Gold mutual funds, like gold ETFs invest in gold-related securities, such as futures, bullion, and gold mining.

Risk Level

Gold mutual funds are still subject to the gold price, but their value is different than other gold assets. It depends on the performance and securities of the fund.

The total value of the securities in the gold mutual fund and the number outstanding shares determine the price of its shares. Gold prices fluctuate a lot, so the value of mutual funds that invest in gold can also be volatile.


Gold mutual funds are a cheaper way to invest than buying, storing and insuring gold. They're also a more convenient option. Gold mutual funds are more liquid than gold ETFs, because you can sell to the fund whenever you want instead of having to find a buyer.

Gold mutual funds are a great way to diversify your portfolio, as they manage shares of a variety of gold-related companies and bullion.


Gold mutual funds, unlike gold ETFs are not available on the stock exchange, nor can you buy or sell them at any time. Gold mutual funds are actively-managed securities. This means that they include management fees and have a higher expense ratio than gold ETFs.

Companies that Offer These

Some gold mutual funds invest in other precious materials, including silver, palladium, platinum and others. Some of the best gold mutual funds include:

  • Fidelity Select Gold Portfolio Fund
  • Gabelli Gold Fund
  • Allspring Precious Metals Fund
  • Invesco Gold and Special Minerals Fund
  • VanEck International Investors Gold Fund

Mining Companies

gold nuggets from gold pit mine

Gold mining companies are one of the best places to invest, as they have a significant stake in the gold price. Gold mining stocks can be purchased through a brokerage account. This gives you the benefits of high liquidity and transparent pricing.

Risk Level

Stocks of gold mining firms are a safer option to invest in gold, as the value of these shares is determined by the performance of their business and not only the price of metal. Gold mining companies can hedge against falling prices even if gold's value drops.


Owning gold as physical is not a good investment for long-term growth. Instead, you can invest in stocks of gold mining firms if that is what you want.

Gold mining stocks increase in value when gold prices rise. Companies that perform well can also give you higher returns.


The need to thoroughly research each gold mining company can be a time-consuming task. You can rely on the fund manager when you invest in gold mutual funds or ETFs to do the research and due diligence.

These Companies Offer

The following are the best gold mining companies that you can invest in.

  • Barrick Gold (GOLD).
  • Newmont Mining Corporation (NEM)
  • Franco-Nevada (FNV)
  • Centerra Gold
  • Equinox Gold (EQX).

You can also find out more about the following:

different kind of gold jewelries on rock surface

According to the World Gold Council 49% of gold mined is turned into jewelry. Gold jewelry is the most common use of the metal.

Gold jewelry is valued by its purity (or karats), with 24 karats representing pure gold. Gold jewelry with a karat of 14 or more can be a good investment.

Risk Level

Gold jewelry investing is a riskier method than other methods of gold investment. It is important to buy only from reputable jewelry retailers so that you do not buy false or misleading gold products.

It is important to have the proper documentation with your gold jewelry. This will be very valuable for future buyers.


You can find great deals on gold jewelry in auctions, estates sales and other non-retail outlets. You could make a lot of money by selling the items you find.


Gold jewelry is usually marked up by the company who designed and made it. The markups are often much higher than the actual value of gold, up to 300%.

Gold jewelry can be difficult to sell and buy because of the high markups.

Companies that Offer These

Gold jewelry is available everywhere, but certain jewelry stores go beyond the norm in terms of design and quality. Here are some examples of gold stores where you can invest in quality gold:

  • Brilliant Earth
  • Blue Nile
  • GoldSilver
  • James Allen


gold magnifying glass with dollar bills

Gold futures are contracts that allow experienced investors to buy and then sell a specified amount of gold at a particular date. Futures are a way to make money by speculating on the price of the metal.

Risk Level

Gold futures have a high value and you may need to invest large amounts of money in order to purchase contracts. Due to the volatility of futures contracts, you may lose more money than what you initially invested.

Gold futures are best suited to experienced investors who can withstand the risk of loss.


Gold futures can be used as a store for value, without having to purchase physical gold. This allows you to hedge risks on the traditional market while making money by speculating the gold price. Gold futures are also cheaper than gold bullion.


Gold futures have the main disadvantage that you are required to maintain them, no matter how inefficient they become. Gold futures are a risky investment because of the complexity and high level of risk. This is especially true for those who are new to investing.

Companies that Offer These

You can buy gold futures in the U.S. through the New York Mercantile Exchange. The standard contract sizes for gold futures are 100,50,and 10 troy ounces. Gold futures are traded almost all day Sunday through Friday.

Tips for Gold Investment

stack of gold coins with growing plants on top

Here are some tips to help you succeed with your gold investment if you decide that buying physical gold is best for you.

  • Find a reputable gold dealer by doing your research
  • Beware of hidden fees such as distribution and management costs
  • Plan how you will store your gold.
  • Buy insurance for your gold
  • Gold is cheap when you buy it

Risk Tolerance

Although gold is a low-risk investment it is still important to know your level of risk tolerance before buying. Gold's price can change dramatically, so you need to keep track of its value when managing your gold assets.

You can read books or websites

You can find more detailed information on gold investing by reading books, or if you prefer the old-fashioned way, visiting websites. You can learn more about gold investment from the following sources:

  • Learnaboutgold.com
  • Investopedia.com
  • Michael Maloney's "Guide to Investing in Silver and Gold: Protect Your Future Financially"
  • James Rickards, "The New Case for Gold".

How much gold should you have in your portfolio?

Your risk tolerance and financial objectives will determine how you structure your portfolio. As a general rule, you should have at least 10% of your portfolio invested in gold.

If the dollar value plummets, you'll have a good fallback plan if you invest at least 10% in gold. However, investing too much in gold will compromise your ability to earn passive income. Consult your financial advisor before making any decisions.

Gold Scams: Beware!

Gold scammers exist, and even companies that seem reputable may use tactics to cause you make a poor investment. Here are some tips to protect yourself from gold scams.

  • Review the business ratings of the dealer and their customer reviews
  • Investigate the company for past frauds
  • Check out reviews on reputable websites

Diversifying your gold investments

Gold can be used to diversify your portfolio, and act as a balance against traditional assets like stocks or bonds. You can diversify your gold investment by investing in gold ETFs or mutual funds.

Learn about Gold Investments Right Now

Our website has a large library of resources to help you learn how to invest in gold. We will help you compare gold IRAs, and find the best providers for your needs and financial goals.

Contact us if you have any questions about gold investments or take our quiz to determine your gold IRA partner.

Frequently Asked Questions

What are some of the advantages and disadvantages to a gold IRA

For those who don't have the ability to access traditional banking services but want to diversify their portfolios, a gold IRA can be a great investment option. It allows you to invest in precious metals such as gold, silver, and platinum without paying taxes on any gains until they're withdrawn from the account.

However, if you withdraw money before the due date, you will be subject to ordinary income tax. However, these funds are kept outside the country and cannot be seized by creditors if you default.

A gold IRA could be the best option for you if your goal is to have gold that you can own without worrying about taxes.

Are gold IRAs a good place to invest?

You should buy shares in companies that produce gold. To make money in investing in gold or other precious metals, such as silver, you should purchase shares in these companies.

However, there are two drawbacks to owning shares directly:

First, you can lose money by holding onto your stock for too long. Stocks fall faster than their underlying assets (like gold) when they are declining. That means you could end up losing money instead of making it.

You may also miss potential profits if the market recovers before you sell. You may have to wait for the market to recover before you can make a profit on your gold holdings.

But if you prefer to keep your investments separate from your finances, you can still benefit from owning physical gold. A gold IRA will help protect your portfolio from inflation and diversify it.

Visit our website to find out more about investing in gold.

What proportion of your portfolio should you have in precious metals

Physical gold is the best investment to protect yourself against inflation. This is because you not only get the current price but also the future value when you invest precious metals. As prices rise, so does your investment's value.

Tax benefits will accrue if your investments are kept for at most five years. Capital gains taxes will apply if you sell the investments within this time period. Our website has more information about how to purchase gold coins.

How do I choose an IRA?

Understanding your account type will help you find the right IRA. This will include whether you're looking for a Roth IRA or a traditional IRA. You should also know how much money your have available to invest.

The next step is determining which provider fits your situation best. Some providers offer both accounts while others are specialized in one.

Last, consider the fees associated to each option. There are many fees that vary between providers. They may include annual maintenance fees or other charges. Some providers charge a monthly fee depending on how many shares you have. Others charge only once per quarter.


  • Silver must be 99.9% pure • (forbes.com)
  • SEP-IRA”Simplified employee pension” For self-employed people like independent contractors, freelancers, and small-business ownersSame tax rules as traditional IRASEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less4. (sltrib.com)
  • To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
  • Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (forbes.com)

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How To

How to buy gold for your Gold IRA

A term that describes precious metals is gold, silver and palladium. It is any element that has atomic numbers between 79 and 110 (excluding Helium), and which is valued because of its beauty and rarity. Precious metals include gold and silver. Precious metals can be used to make money, jewelry, industrial products, and art objects.

Supply and demand affect the gold price daily. Investors are looking for safe havens away from unstable countries and precious metals has seen a large demand over the past decade. Prices have increased significantly because of this demand. Some are concerned about the increased cost of production and have resisted investing in precious materials.

Gold is a reliable investment due to its rarity and durability. Like many investments, gold doesn't lose value. You can also buy and sell gold, without having to pay taxes. You have two options to invest in gold. You can either purchase gold bars and coins or invest in futures gold contracts.

The physical gold bars and coins provide immediate liquidity. They are easy to store and trade. They do not offer any protection against inflation. You can protect yourself against rising prices by purchasing gold bullion. Bullion is physical gold that comes in different sizes and shapes. While some billions are sold in one-ounce portions, others come in larger pieces such as kilobars. Bullion is normally stored in vaults that are fire- and theft-resistant.

Gold futures can be a great way to buy shares rather than actual gold. Futures allow you to speculate as to how the gold price will change. You can purchase gold futures to get exposure to the gold price, but not the actual commodity.

For example, if I wanted to speculate on whether the price of gold would go up or down, I could purchase a gold contract. My position at the expiration of the contract will be either “long-term” or “short-term.” A long contract is one in which I believe that the price of gold will rise. I'm willing now to pay someone else money, but I promise I'll get more money at the end. A short contract on the other side means that I believe gold's price will fall. So, I'm willing to take the money now in exchange for the promise that I'll make less money later.

I will receive the amount of gold in the contract, plus interest, when the contract ends. I am now exposed to the price of gold, without actually holding it.

Because they are extremely difficult to counterfeit, precious metals make great investments. While paper currency can be easily counterfeited simply by printing new notes, precious metals cannot. It is because precious metals are hardier than paper currencies that they can be counterfeited by printing new bills.


By: Learn About Gold
Title: What’s the Best Way To Invest in Gold?
Sourced From: learnaboutgold.com/blog/best-way-to-invest-in-gold/?utm_source=rss&utm_medium=rss&utm_campaign=best-way-to-invest-in-gold
Published Date: Thu, 27 Apr 2023 17:04:30 +0000

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