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According to a 2025 Gallup poll, about every six in 10 people invest in stocks. That includes whether they're individual stocks, in mutual funds, or retirement funds. In general, stocks and gold have an inverse relationship, which means that when the stock market experiences a downturn, gold prices go up, and vice versa. So investing in gold is an excellent way to diversify your investment portfolio.
If you're thinking about investing in precious metals, here's what to know about how to buy gold for your portfolio.
How to buy gold: What are your options?
There are several ways you can buy gold, including buying physical gold, purchasing shares of a fund that holds gold, or investing in gold mining companies Here's what to know about your options for purchasing this alternative asset.
Investing in gold
Investors can purchase a handful of different securities that allow them to take advantage of gold's price movements without actually owning the precious metal in its physical form.
Those options include a gold individual retirement account (IRA), gold exchange-traded funds (ETFs), precious metal mutual funds, and gold mining stock.
1. Invest in a gold IRA
A gold IRA is a type of self-directed individual retirement account that involves investing in and owning actual gold coins and bullion. These accounts are also called precious metals IRAs because you can also invest in other metals, including silver, platinum, and palladium.
You typically need to work with a bank or brokerage firm to manage your account and act as a custodian for the gold you purchase. Then you can buy the actual assets from a precious metals dealer.
To hold physical gold in an IRA, you need a custodian that permits the investment. The gold must meet IRS eligibility rules, and eligible bullion must remain in the physical possession of a bank or approved nonbank trustee. You cannot take it home while it is held in the IRA.
You can open a new gold IRA or roll over an existing retirement plan, such as a 401(k) and other employer-sponsored retirement plans, as well as other individual retirement accounts.
Gold IRAs can offer the chance for investors to hedge against potential stock market volatility. But as with any other investment security, it's good practice to avoid putting all your eggs in one basket, so you could choose to plan to invest in stocks, bonds, and other options to maintain a diversified portfolio.
2. Invest in gold ETFs
An exchange-traded fund is effectively a basket of different investment securities. In this way, they're similar to mutual funds, but the primary difference is that ETFs are traded on exchanges like stocks.
Some gold exchange-traded products hold physical bullion and aim to track its price, less expenses. Buying their shares gives you exposure to gold prices without taking possession of bullion. Other funds, such as gold miners ETFs, hold mining company stocks instead.
The SPDR Gold Trust ETF, which was first launched in 2004, is one option for investors who want a security that tracks gold prices. Investors can purchase SPDR gold shares, and other options include the GraniteShares Gold Trust, the iShares Gold Trust, and the VanEck Gold Miners ETF.
A gold ETF is also typically a more affordable way to invest in gold, albeit indirectly. A share of a gold-backed fund generally costs less than buying a full troy ounce of gold. The share price changes with the market, and the fund charges ongoing expenses.
3. Invest in precious metals mutual funds
Mutual funds work similarly to ETFs in that they invest in a variety of securities, which helps diversify your portfolio. However, mutual funds don't trade on the market as ETFs do.
Precious metals mutual funds may include a mix of gold and silver bullion (and possibly also other precious metals), as well as mining stocks. The fund is run by an investment manager, who buys and sells securities to help increase your rate of return.
As a result, you can expect to pay a fee to cover the cost of that service.
If you're planning to go this route to invest in gold, some of the top options include the Allspring Precious Metals Fund, the Fidelity Select Gold Portfolio Fund, and the Gabelli Gold Fund.
4. Purchase gold mining stock
Investing directly in gold mining companies instead of investing through an ETF or mutual fund doesn't expose you directly to the price of gold. However, gold mining companies can leverage increases in the price of gold to benefit their shareholders.
For example, if the price of gold increases, these companies may ramp up production to take advantage of the higher prices.
Of course, it's a good idea to do your research on individual stocks before you start trading. As in other industries, not all gold mining companies are created equal. Because their share prices are indirectly tied to gold prices, you may want to consider diversifying your portfolio with stocks in other sectors, as well as in different types of securities.
There are hundreds of different gold mining companies you can invest in. Some of the popular options include Barrick Mining Corporation and Agnico Eagle Mines.
Buying physical gold
Some prefer the idea of investing in physical gold rather than gold-related securities. Physical gold is also sometimes referred to as gold bullion, and you can purchase it in the form of coins, bars, or ingots. You can also invest in gold via jewelry.
Owning physical gold can be satisfying for some investors, but storing and insuring your gold bullion can be pricey. Also, gold dealers tend to charge premium prices, and liquidity is an important consideration because it can be challenging to sell quickly when you need the money. That said, here's a quick summary of each option that's available to you.
5. Buy gold coins
Gold coins vary in purity, size, and price. Bullion coins are generally valued for their gold content, while collectible coins may carry an additional premium. A one-ounce American Gold Eagle contains one full troy ounce of gold even though the coin is 91.67% gold by total weight; the remaining metal is part of the alloy.
What's more, because of their value as collectibles, gold coins often cost more per ounce than gold bars, even though they contain less gold. Some popular gold coins include the Canadian Maple Leaf, South African Krugerrands, and American Eagle coins.
If you opt to buy gold bullion coins, consider going through a well-known online dealer, such as APMEX, JM Bullion, or Kitco. You could also buy coins from collectors or pawn shops, but you'll want to do your due diligence to ensure the gold's purity, especially if you're dealing with a pawn shop. According to APMEX, gold is the most counterfeit precious metal on the market. To ensure it's priced fairly, it's also a good idea to compare pricing to the market price, or spot price, of gold before you buy.
6. Buy gold bars
Gold bars come in several different denominations and range from 99.5% to 99.9% in gold content, which can affect how much a gold bar is worth. You can purchase bars based on weight, price, and quantity. Once you receive it, you can store it on your own, in a safe deposit box at your local bank or with a storage company.
Like gold coins, gold bars can be expensive to store and insure properly. The purchase process is also similar. You can purchase gold bars from dealers based on your budget and how much you want to invest. You can also expect to pay a premium above the gold's actual price to the dealer, though it's typically not as high as with coins.
7. Buy gold jewelry
Gold jewelry can be both an investment and something you wear. Before buying, check its purity: 24-karat gold is considered pure gold. The higher the purity level of gold in the piece, the more valuable it will be.
However, something to keep in mind is that pure gold is a soft metal, so although wearing high-karat pieces can be tempting, try to do so sparingly. Instead, consider purchasing lower-karat pieces for everyday use. Some may choose to wear only gold-plated jewelry or gold-filled pieces instead of solid gold.
Another thing to consider is that gold jewelry can come in many forms, including yellow gold, white gold, rose gold, and green gold. Some of these options combine gold with other metals to make the alloy stronger and also change their appearance.
Purchasing gold jewelry directly from jewelers or pawn shops are two options. But again, it's important to compare prices to the spot price of gold and evaluate the gold's quality before you purchase it — don't take the seller's word for it.
FAQs
What is the best way to buy gold?
It depends on your investment goals, budget, and preference. For those investing without much money, gold ETFs, mutual funds, or mining stocks could be a way to get exposure to gold prices without the extra costs associated with owning the physical commodity.
However, if you prefer the idea of handling the precious metal personally and can afford it, buying gold coins, bars, or jewelry could be a good move for you.
If you're planning on buying physical gold, the important thing is to make sure you're buying from a reputable dealer. You'll also want to verify the gold's content and purity to ensure you're getting the value you're paying for.
Should I buy gold bars or coins?
There are a few different things to consider if you're trying to decide between gold bars and coins. First, although gold bullion coins tend to be more expensive (all else being equal), they also command higher premiums when it's time to sell. Also, coins may be easier to store, and they're easier to sell when you're ready to do so.
However, if you're planning to buy large quantities of gold, you may want to go with gold bars because they have lower premiums. That said, it can be tougher to sell bars, especially lower denominations.
Do gold bars lose value?
The value of your gold bars will be based on the market price for gold. If that price goes up, your bars will be more valuable. In contrast, lower prices will make your bullion bars less valuable. It's also important to remember that you'll pay a premium to the dealer on your gold bar purchase, so they likely won't be worth what you paid for immediately.
You may also lose some value when you sell the bar back to a dealer, which reduces your investment rate of return.
Bottom line
Whether you're saving for retirement or simply learning how to invest money, investing in gold is an option to diversify your investment portfolio. However, there are several ways you can invest in this precious metal, so it's important to research your options and choose the one that's best suited for your budget and your investment goals.
ETFs and mutual funds offer an accessible way to invest, while mining stocks may benefit when gold prices rise. Many of the best brokerage accounts offer these options. Keep in mind that gold-focused investments don't diversify your entire portfolio, and all investments carry a risk of loss.
More advanced investors might consider opening a self-directed IRA to invest in physical gold as part of your retirement plan. You may also choose to buy physical gold in the form of coins, bars, or jewelry.
If you're unsure of the best option for you, a financial advisor can help you determine whether investing in gold is a good choice and how to fit it into your overall investment strategy.
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