Investing guide · US edition
How to Invest in Gold: A Beginner’s Guide for the US
The short version
This guide explains how to invest in gold in the United States, from coins and bars to gold ETFs, gold IRAs, mining stocks and futures. For each option you’ll see how it works, who it suits, what it really costs, the risks, and how to get started.
- For most beginners, a low-cost gold ETF in a brokerage account is the simplest and cheapest way to track the gold price.
- Physical gold (coins and bars) costs more to buy and sell, but you own the metal outright.
- Long-term gains on physical gold and on physically backed gold ETFs are taxed as collectibles, at up to 28%56.
- Be very careful with gold IRA sales pitches. Federal regulators have repeatedly warned about high fees and fraud9.
- Gold pays no interest or dividends and can fall for years. Most people keep it to a small slice of their portfolio.
Compare the ways to invest
Here are the main ways to invest in gold in the US. Tap any route to jump to its card.
| Route | You own | Typical costs | Risk | Best for |
|---|---|---|---|---|
| Physical gold: coins and bars | Real gold you can hold | Premiums of a few % (more on small coins), shipping, storage and insurance | Medium | Long-term holders who want metal they control |
| Gold ETFs | Shares in a trust that holds vaulted gold | Expense ratio about 0.10%–0.40% a year, plus a small trading spread | Medium | Most beginners and IRA investors |
| Gold IRAs (precious metals IRAs) | Physical gold held by a custodian | Setup, yearly custodian and storage fees, plus dealer markups | High | A few retirement savers who specifically want physical metal |
| Gold mining stocks and funds | Shares in mining companies | Trading costs; fund expense ratios | High | Investors comfortable with bigger swings |
| Gold futures and options | A contract on gold for a future date | Commissions and exchange fees; margin | Very high | Experienced traders and hedgers |
| Day trading gold | Futures or ETF shares, held briefly | Commissions, spreads, data fees; taxes on short-term gains | Very high | Experienced traders with money they can afford to lose |
| Digital gold and gold-backed tokens | A claim on vaulted gold, or a crypto token | Dealing, storage and exchange fees | High | Small buyers; crypto users who accept extra risk |
Words you’ll see
- Spot price
- The price for gold delivered now, quoted per troy ounce. It’s the benchmark everything else is priced from1.
- Troy ounce
- The unit used for precious metals: about 31.1 grams2, a little heavier than a regular ounce.
- Premium
- The amount you pay above the spot price for a coin or bar, covering minting, dealer costs and shipping.
- Spread
- The gap between a dealer’s selling price and buy-back price. It’s an instant cost on every purchase.
- ETF (exchange-traded fund)
- A fund that trades on the stock market like a share. Physically backed gold ETFs hold gold bars in a vault.
- Expense ratio
- A fund’s yearly fee as a percentage of your investment, taken automatically.
- Leverage
- Controlling a bigger position than your cash with borrowed money or margin. It magnifies both gains and losses.
Ways to invest
Way 1 of 7
Physical gold: coins and bars
Owning the metal itself, at home or in a depository.
- You own
- Real gold you can hold
- Typical costs
- Premiums of a few % (more on small coins), shipping, storage and insurance
- Risk
- Medium
- Best for
- Long-term holders who want metal they control
How it works
You buy coins (like American Gold Eagles or Buffalos) or bars from a dealer, then store them at home, in a bank safe deposit box, or in a private depository. The price is the spot price plus a premium, and you later sell back to a dealer, usually below the retail price.
The US Mint doesn’t sell its bullion coins directly to the public. It sells through authorized purchasers, and you buy from coin and bullion dealers3.
Who it suits
- People who want gold outside the financial system.
- Long-term savers holding for five years or more.
Risks and costs
- Price risk: gold can fall sharply and stay down for years.
- Premiums and spreads: you often need a price rise of several percent just to break even.
- Sales tax: most states exempt investment bullion, but a few still charge sales tax, and rules change4.
- Storage and theft: home insurance often covers little bullion. Depository storage has yearly fees.
- Fakes and bad dealers: retail metals dealers have limited federal oversight, so check their reputation10.
How to get started
- Choose widely recognized products (Gold Eagles, Buffalos, Maple Leafs, or bars from known refiners). They’re easier to resell.
- Compare the total delivered price per ounce across a few established dealers.
- Ask for the dealer’s buy-back price, and get all fees in writing10.
- Plan storage and insurance before the gold arrives.
- Keep receipts for your cost basis at tax time.
Where to buy
Well-known US dealers, listed as examples, not recommendations. We haven’t audited any dealer; check reviews and your state’s consumer protection office.
- US Mint list of authorized purchasersOfficial list. Not all of them sell to individuals.
- APMEXLink not checked: confirm it before relying on it
- JM BullionLink not checked: confirm it before relying on it
- SD Bullion
Way 2 of 7
Gold ETFs
The cheapest and simplest way for most people to follow the gold price.
- You own
- Shares in a trust that holds vaulted gold
- Typical costs
- Expense ratio about 0.10%–0.40% a year, plus a small trading spread
- Risk
- Medium
- Best for
- Most beginners and IRA investors
How it works
A physically backed gold ETF holds gold bars in a vault, and each share tracks the gold price minus a yearly fee. You buy and sell it through any brokerage account during market hours.
Fees vary more than people expect. When we checked: SPDR Gold Shares (GLD) 0.40%, iShares Gold Trust (IAU) 0.25%, and SPDR Gold MiniShares (GLDM) 0.10% a year7.
Who it suits
- Beginners who want gold exposure without storage or high premiums.
- Anyone investing through an IRA or 401(k) brokerage window.
Risks and costs
- You own fund shares, not metal you can hold.
- In a taxable account, long-term gains on physically backed gold ETFs are generally taxed at the collectibles rate of up to 28%, not the lower stock rates6.
- Fees reduce returns every year, so compare expense ratios.
How to get started
- Open a brokerage account with a large, SIPC-member broker.
- Compare gold ETFs by expense ratio and size.
- Consider holding it inside an IRA to sidestep the collectibles tax issue.
- Decide your allocation and rebalance periodically.
Where to buy it
Large US brokers where gold ETFs can be bought. Examples only.
Way 3 of 7
Gold IRAs (precious metals IRAs)
Holding physical gold in a retirement account. Read the warnings first.
- You own
- Physical gold held by a custodian
- Typical costs
- Setup, yearly custodian and storage fees, plus dealer markups
- Risk
- High
- Best for
- A few retirement savers who specifically want physical metal
How it works
A “gold IRA” is a self-directed IRA that holds physical metal. IRAs generally can’t own collectibles, but the law makes exceptions for certain gold, silver and platinum coins, and for bullion of a minimum fineness, provided a bank or approved trustee holds it8. You can’t keep IRA gold at home.
A simpler alternative is to buy a gold ETF inside an ordinary IRA at a mainstream broker, which avoids custodian and storage fees.
Who it suits
- Retirement savers who specifically want physical metal and accept higher costs.
Risks and costs
- High fees and markups: setup, custodian, storage and dealer markups can be large.
- Fraud and pressure sales: the CFTC has warned about schemes that move retirement savings into overpriced metals, often with high-pressure pitches9.
- Self-directed IRAs lack built-in adviser oversight10.
- Rollover mistakes can trigger taxes and penalties.
How to get started
- Compare the total yearly cost with simply holding a gold ETF in your existing IRA.
- If you go ahead, choose the custodian yourself and get every fee in writing.
- Be wary of free silver offers, celebrity endorsements and urgent deadlines.
Learn more on this site: Position sizing: how much to put in one investment
Way 4 of 7
Gold mining stocks and funds
Investing in the companies that produce gold.
- You own
- Shares in mining companies
- Typical costs
- Trading costs; fund expense ratios
- Risk
- High
- Best for
- Investors comfortable with bigger swings
How it works
Miners’ profits rise faster than the gold price when gold goes up, because their costs are fairly fixed. So their shares often swing more than gold in both directions.
You can buy individual miners, or a fund that holds many, such as a gold miners ETF. Compare expense ratios before buying.
Who it suits
- Investors who want more upside than gold and accept more risk.
- People who want possible dividends.
Risks and costs
- Company-specific problems (costs, accidents, politics, debt) can hit a stock even when gold rises.
- Miners often fall further than gold in stock market sell-offs.
How to get started
- Prefer a diversified fund unless you can research companies.
- Check fees and holdings.
- Consider an IRA for long-term holdings.
Learn more on this site: Trading Basics: stocks, ETFs and orders
Way 5 of 7
Gold futures and options
Exchange-traded contracts with built-in leverage.
- You own
- A contract on gold for a future date
- Typical costs
- Commissions and exchange fees; margin
- Risk
- Very high
- Best for
- Experienced traders and hedgers
How it works
Gold futures trade on COMEX, part of CME Group. A standard contract covers 100 troy ounces13, and a micro gold contract covers 10 ounces12.
You post margin, a deposit that’s a fraction of the contract value, so small price moves create large gains or losses. Options on futures, or on gold ETFs, give the right but not the obligation to buy or sell.
Who it suits
- Experienced traders who understand margin, expiry and risk control.
Risks and costs
- Losses can exceed your deposit.
- Contracts expire and must be rolled or closed.
- Price gaps can jump past stop orders.
How to get started
- Learn margin and expiry rules first.
- Use a futures broker regulated by the CFTC and a member of the NFA.
- Start with micro contracts.
Learn more on this site: Covered calls: how options work
Way 6 of 7
Day trading gold
Trying to profit from moves within a single day. Very high risk.
- You own
- Futures or ETF shares, held briefly
- Typical costs
- Commissions, spreads, data fees; taxes on short-term gains
- Risk
- Very high
- Best for
- Experienced traders with money they can afford to lose
How it works
In the US, people day trade gold mainly through micro gold futures or by trading gold ETFs intraday. CFDs, popular elsewhere, generally aren’t available to US residents14.
Short-term gains are taxed as ordinary income5.
Who it suits
- Experienced traders with a tested plan and strict risk limits.
- Not suitable for most beginners.
Risks and costs
- Most day traders lose money after costs.
- Leverage in futures can cause losses beyond your deposit.
- Fast markets around economic news can blow through stops.
How to get started
- Learn orders, stop losses and position sizing first.
- Practise on a simulator for months.
- Risk only a small percentage of your account per trade.
Learn more on this site: Trading Basics · Position sizing and the 1% rule · ATR stop losses · Opening range breakout
Way 7 of 7
Digital gold and gold-backed tokens
Online vault accounts and crypto tokens that claim gold backing.
- You own
- A claim on vaulted gold, or a crypto token
- Typical costs
- Dealing, storage and exchange fees
- Risk
- High
- Best for
- Small buyers; crypto users who accept extra risk
How it works
Some dealers and online platforms let you buy fractions of vaulted gold and sell online. Gold-backed crypto tokens trade on crypto exchanges and claim each token is backed by gold in a vault.
Who it suits
- People who want small amounts without home storage.
- Crypto users who understand wallets and exchanges.
Risks and costs
- You depend on the provider actually holding the gold and staying solvent.
- Crypto tokens carry exchange, wallet and regulatory risks.
- Fees vary widely.
How to get started
- Read who holds the gold, whether it’s allocated, and the audit reports.
- Check the company’s regulatory status and complaint history.
- Keep amounts small.
How gold is taxed in the US
Federal tax depends on what you own and how long you hold it. States add their own rules.
Physical gold
Coins and bullion are treated as collectibles. Long-term gains (held more than a year) are taxed at a maximum 28% rate. Short-term gains are taxed as ordinary income5.
Gold ETFs
Gains on physically backed gold ETFs structured as trusts that hold the metal are also generally taxed as collectibles, at up to 28% long term6. Holding them in an IRA or 401(k) avoids current tax.
Mining stocks and futures
Mining stocks and most stock funds are taxed like other stocks. Regulated futures contracts generally get special “60/40” treatment (60% long-term, 40% short-term, whatever the holding period). Confirm with a tax professional.
Sales tax
Most states exempt investment-grade bullion from sales tax, but some still charge it4. Check your state revenue department before you buy.
How to avoid scams and bad deals
US regulators warn that precious metals are a favorite of fraudsters11. Before you buy:
- Ignore unsolicited calls, ads promising guaranteed returns, and urgent deadlines.
- Compare the price with the spot price and ask for the buy-back price10.
- Get every fee and commission in writing10.
- Be skeptical of “rare” or “semi-numismatic” coins with big markups, often pushed into IRAs9.
- Check complaints with your state regulator and the Better Business Bureau.
- Make sure you actually receive your metal, or a clear statement of what’s stored in your name.
Frequently asked questions
Is gold a good investment?
Gold can diversify a portfolio because it often moves differently from stocks, and investor and central bank demand can push it higher15. But it pays no income, can fall for years, and has no guaranteed return. Many investors hold only a small slice in gold.
What is the cheapest way to own gold?
For most people, a low-cost, physically backed gold ETF. Expense ratios range from about 0.10% to 0.40% a year7, and a brokerage account is usually free to open.
How is gold taxed in the US?
Can I hold physical gold in my IRA?
Only certain coins and bullion, and only if a bank or approved trustee holds them. You can’t store IRA gold at home8. Buying a gold ETF inside a regular IRA is simpler.
Are gold IRAs a scam?
Not all of them, but regulators have warned about schemes that charge very high markups and fees or misrepresent the risks9. Compare costs carefully and choose your own custodian.
Should I buy gold coins or bars?
Bars usually cost less per ounce. Coins are easier to sell in small amounts and widely recognized. Popular government coins such as American Gold Eagles are easy to resell.
Sources and further reading
Numbers in the guide, like 1, point to these sources. Prices, fees and tax rules change, so check the latest version before you act.
- The OTC Guide: The Price. LBMA (London Bullion Market Association).
- The OTC Guide: Conversion table (troy ounces and grams). LBMA.
- Bullion Authorized Purchasers. United States Mint.
- Bullion Sales Tax by State (2026). FindBullionPrices (industry site, not official).
- Topic no. 409, Capital gains and losses. Internal Revenue Service.
- Office of Chief Counsel memorandum on precious-metal ETF interests as collectibles. Internal Revenue Service.
- GLD vs GLDM vs IAU: Which Gold ETF Should You Actually Buy? (17 June 2026). etf.com.
- Investments in collectibles in individually directed qualified plan accounts. Internal Revenue Service.
- Customer Advisory: Beware of Gold and Silver Schemes Designed to Drain Your Retirement Savings. Commodity Futures Trading Commission.
- Customer Advisory: 10 Things to Ask Before Buying Physical Gold, Silver, or Other Metals. Commodity Futures Trading Commission.
- Investor Bulletin: 10 Things to Ask Before Buying Physical Gold, Silver or Other Metals. FINRA.
- Micro Metals Futures and Options. CME Group.
- Gold Futures. CME Group.
- CFD regulation by country. BrokerChooser (industry site, not official).
- Gold Demand Trends. World Gold Council.