Can I buy gold with a brokerage account?

Yes, you can buy gold with a brokerage account. Firms like Fidelity and Charles Schwab let you buy gold ETFs, mutual funds and physical gold through a brokerage account.

How do you begin to invest in gold?

You can buy physical gold at places like Costco, U.S. Money Reserve and other vendors that carry gold bars. You can also set up a brokerage account and buy gold ETFs or gold bars.

Which is the best way to invest in gold?

The best way to invest in gold depends on your long-term financial strategy. Gold ETFs are the most liquid and accessible to buy. Gold bars offer physical ownership, but you have to worry about storage and insurance. Gold or mining stocks can carry a high payoff, but you want to be willing to work with some volatility.

What is the 20-year return of gold?

Over the past 20 years, gold has delivered an average annual return of around 11%.

How much gold can you legally own?

There is no legal limit to how much gold you can own.

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How To Invest in Gold: 5 Smart Strategies for 2025

July 17, 2025

8 min Read

Written by Rudri Patel

Edited by Elizabeth Constantineau

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Gold has long been considered a reliable store of value — especially during inflation, market uncertainty or economic volatility. If you’re new to gold investing, there are several simple ways to get started, whether you’re looking for hands-on ownership or a more passive approach.

Method	Best For
Buying physical gold	-Long-term security -Safeguard in uncertain times
Invest in gold exchange-traded funds (ETFs) and mutual funds	-Easy trading -Hands-off investing
Buy gold mining stocks	-Leverage when gold prices rise -Growth potential
Gold futures and options	-Quick trades -Risk-tolerant investors
Gold individual retirement account (IRA)	Retirees who want some exposure to gold

1. Buy Physical Gold — Bars and Coins

When most people think about how to invest in gold, they picture bars and coins. Owning physical gold can be satisfying — you can hold your investment in your hand. Here’s a breakdown of your main options:

Gold bars and bullion: These are sold based on weight and purity.
Gold coins: Popular choices like the American Gold Eagle or Canadian Maple Leaf are backed by national mints and offer liquidity and recognition.

Pros and Cons of Physical Gold Investments

Pros	Cons
Tangible asset	Requires storage and insurance
Ownership isn’t tied to anyone else	Higher transaction costs
Useful during economic uncertainty	Not as liquid as digital assets

2. Invest in Gold ETFs and Mutual Funds

If you’re not ready to store bars in a safe, gold ETFs and mutual funds offer exposure to gold prices without the physical asset.

Gold ETFs are backed by physical gold. Their price tracks the value of gold per ounce and trades like a stock on public exchanges.

Here’s a look at some of the top gold ETFs and mutual funds:

SPDR Gold Shares (GLD)

Expense ratio: 0.40%
2025 return: 26.25%
Investments are in physical gold

iShares Gold Trust (IAU)

Expense ratio: 0.25%
2025 return: 26.40%
Highly liquid

GraniteShares Gold Trust (BAR)

Expense ratio: 0.17%
2025 return: 27.16%
Invests directly in gold

abrdn Physical Gold Shares (SGOL)

Expense ratio: 0.17%
2025 return: 27.16%
Physical gold stored in Swiss vaults

Pros and Cons of Gold ETFs and Mutual Funds

Pros	Cons
No storage concerns	No physical ownership
Highly liquid	Expense ratios
Low fees	May be taxed at higher collectibles rate

3. Buy Gold Mining Stocks

Another way to gain exposure to gold is by investing in companies that mine or produce gold. Here are a few popular gold mining stocks to consider:

Newmont Corp. (NEM): World’s largest gold miner
Barrick Mining Corp. (B): Major global producer
Agnico Eagle Mines Limited (AEM): Strong growth
Franco-Nevada Corp. (FNV): Gold royalty company

Gold Mining Stocks Pros and Cons

Pros	Cons
Potential for higher returns if gold prices rise	Company-specific risks
May pay dividends	Stock prices can be volatile

4. Trade Gold Futures and Options

For more advanced investors, gold futures and options provide ways to speculate on gold’s future price.

How Gold Futures Work

With gold futures, you agree to buy or sell gold at a predetermined price on a set date. This is a contractual obligation. In most cases, the actual gold doesn’t change hands — the contract is settled in cash.

How Gold Options Work

Unlike futures, options give you the right — but not the obligation — to buy or sell gold. This offers more flexibility but still requires a strong understanding of market dynamics.

Gold Futures and Options Pros and Cons

Pros	Cons
Potential for significant short-term gains	Complex and risky
Leverage allows larger trades with less capital	Can involve margin calls

5. Open a Gold IRA

Gold IRAs allow you to hold physical gold within a tax-advantaged retirement account. These are self-directed IRAs managed by specialized custodians.

Here are some key considerations to keep in mind:

Gold held in an IRA must meet IRS purity standards, such as 99.5% purity for bars.
It must be stored in an IRS-approved depository — not at home or in a personal safe.
You’re not allowed to take physical possession of the gold while it’s in the IRA.

Gold IRAs can be a good choice for long-term investors who want to add more variety to their retirement savings.

Gold IRA Pros and Cons

Pros	Cons
Tax advantages	Strict IRS rules
Adds diversification to retirement portfolio	Setup and storage fees can add up
Holds physical gold in a secure, regulated way	Can’t store gold at home

Which Gold Investment Fits Your Goals?

With so many ways to invest in gold, the best option depends on your goals, how much risk you’re comfortable with and how involved you want to be. Ask yourself the following:

Want hands-off exposure? Gold ETFs or mutual funds offer an easy, low-maintenance way to invest.
Want to physically handle your gold? Bars or gold coins let you own gold directly — just be mindful of storage costs and insurance.
Looking for growth potential beyond gold’s price? Gold stocks or ETFs offer higher upside but come with more volatility.
Comfortable with more risk and leverage? Futures or options can amplify gains — but also losses — and are best for experienced investors.

Costs and Fees To Know Before You Buy

Before you decide which way you want to invest in gold, make sure you understand the potential costs involved. Here’s what to expect for each investment type.

Physical Gold

Cost Type	Expected Fee
Dealer premium	2% to 10% depending on brand, size and demand
Shipping premium	Can range from $20 to $100
Storage fees	-Will not cost anything if stored at home -Can rent a safety deposit box at the bank for up to $250
Sales tax	Some states charge a sales tax on gold purchases

Gold ETFs and Stocks

Cost Type	Expected Fee
Expense ratio	0.17% to 0.40% charged annually
Brokerage commission	Usually $0
Taxes	Long-term capital gains may be taxed at collectibles rate — up to 28% — for most U.S. gold ETFs

7 Tips for First-Time Gold Investors

If you’ve never invested in gold, you may need some tips to help you get started.

Start small: Don’t commit large sums in the beginning. Buy a few coins or ETFs to get started.
Decide between physical vs. paper gold: Choose whether you want physical ownership of gold, like a bar or coin. If you prefer more liquidity, invest in ETFs, stocks or mining stocks.
Use reputable vendors: Choose vendors you trust, like your brokerage company, for the purchase of ETFs. To buy physical gold, you can reach out to reputable vendors — APMEX, JM Bullion and Kitco.
Understand premiums and fees: You’ll pay more than the gold price for bars and you will also need to pay for storage and insurance for physical gold.
Diversify: It’s best to hold gold as just a portion of your balanced portfolio.
Stay informed of gold prices and the economy: Things like inflation, interest rates and market trends can all affect the value of gold.
Beware of scams: Stick with verified dealers and regulated brokers to avoid counterfeits or overpriced products.

Is Gold a Good Investment Right Now?

Gold continues to play a valuable role in diversified portfolios — especially as economic uncertainty looms large. It won’t pay dividends or interest, but its stability, scarcity and historical resilience make it a compelling option for both cautious and strategic investors.

Whether you choose to hold it in your hand or through your brokerage, learning how to invest in gold is a solid step toward protecting your financial future.

Next Steps To Consider:

Compare prices of gold ETFs and physical gold
Look into trusted brokers or gold dealers
Talk to a financial advisor to see where gold fits in your strategy

Investing in Gold FAQ

Still have questions about how to invest in gold? Here are answers to some of the most common ones.

Can I buy gold with a brokerage account?
- Yes, you can buy gold with a brokerage account. Firms like Fidelity and Charles Schwab let you buy gold ETFs, mutual funds and physical gold through a brokerage account.
How do you begin to invest in gold?
- You can buy physical gold at places like Costco, U.S. Money Reserve and other vendors that carry gold bars. You can also set up a brokerage account and buy gold ETFs or gold bars.
Which is the best way to invest in gold?
- The best way to invest in gold depends on your long-term financial strategy.
  - Gold ETFs are the most liquid and accessible to buy.
  - Gold bars offer physical ownership, but you have to worry about storage and insurance.
  - Gold or mining stocks can carry a high payoff, but you want to be willing to work with some volatility.
What is the 20-year return of gold?
- Over the past 20 years, gold has delivered an average annual return of around 11%.
How much gold can you legally own?
- There is no legal limit to how much gold you can own.

Daria Uhlig, John Csiszar, Vance Cariaga and Amber Barkley contributed to the reporting for this article.

Information is accurate as of July 17, 2025.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.