The best ways to invest in gold in 2023

Not surprisingly, many Americans are concerned about their investment portfolios amid stubborn inflation, continued interest rate hikes and uncertainty in the banking sector and world events. If the current economic conditions are giving you pause, it may make sense to reevaluate your portfolio to ensure it's still helping you progress toward your financial goals.

One investment you might consider adding to your portfolio is gold. Gold has long been viewed as a storage of value and a hedge against inflation. Gold prices have soared in recent months, hitting $2,047 per ounce on May 5, 2023, just shy of the record high of $2,069.40 on August 6, 2020. You can buy the "yellow metal" in many forms, including gold IRAs, physical gold, gold ETFs and gold futures.

If you're considering gold investing now then start by requesting a free investors kit to learn more. 

The best ways to invest in gold in 2023

Here are some of the best ways to start investing in gold now.

Gold IRAs

A gold IRA is a retirement savings account that can hold precious metals like physical gold, silver, platinum and palladium. Although gold IRAs have been around since the late 1990s, many Americans are just beginning to learn about them.

So, should investors consider gold IRAs as part of their retirement plan? "Absolutely," says Joe Cavatoni, chief market strategist, Americas, at the World Gold Council. "Having an IRA provides you with a diversified retirement platform, and it would be prudent for investors to consider adding gold to that portfolio."

While past performance is never a guarantee of future results, gold has long been valued as a guard against inflation. Additionally, gold IRAs provide the same tax benefits as regular IRAs. If you want to diversify your portfolio and spread out the risk in your retirement plan, a gold IRA may make sense.

A reputable gold company can help you set up a gold IRA to meet IRS regulations, and the process is relatively straightforward. Like other investments, it's a good idea to shop and compare multiple gold companies to identify the best one to help you get started. Request a free gold IRA information kit to learn more.

Physical gold

One of the most common ways to invest in gold is to buy physical gold, including gold bars and coins. Many investors like having a tangible asset they can see and touch. Just understand that you must store and insure any precious metals you own.

You can store your gold in a safe at your home or a safe deposit at your bank, although your investments are not insured in either case. You may be able to purchase insurance as an add-on to your homeowners' insurance policy. Many investors opt to store their gold and silver with an authorized depository or vault that will also insure precious metals. Depending on your account size, storage fees can range from around $5 to $60 per month.

Gold can be beneficial as a store of value during geopolitical uncertainty. Historically, gold also acts as a hedge against inflation and a good portfolio diversifier during economic and stock market declines.

Gold ETFs

A gold exchange-traded fund (ETF) is a type of gold investment that allows you to gain exposure to the price of gold without actually owning the physical gold. Gold ETFs hold gold assets, such as bullion and futures contracts.

Gold ETFs are a popular entry point for beginning gold investors because you can usually purchase them through your brokerage account just as easily as purchasing shares of a popular stock on the market.

"There are many ways to invest in gold, but by far the best for most investors is through gold ETFs," says Robert Michaud, New Frontier Advisors CIO. "Gold ETFs are free to trade through most major brokerage accounts, and the best ones are extremely liquid, have low expense ratios, and are backed by physical gold. This gives investors a safe and cost-effective way to include gold as part of their overall portfolio, along with stocks and bonds."

Gold futures

Gold futures are contracts traded on futures exchanges that require the buyer to receive a certain amount of gold from the seller at a set price on a specific date in the future. These types of contracts permit investors to speculate on the future gold price. If you purchase at a specific price, you could make or lose money depending on whether the price of gold rises or falls.

Due to the risks involved, many investment experts advise against investing in futures for beginners. If your price drops just before your contract expires, you could lose some or all of your investment. For this reason, many brokerage firms require you to sign a form stating you understand the risks involved before opening your account to gold futures investments.

The bottom line

Gold can be an excellent investment in high-inflation environments and during times of economic and global uncertainty. As such, consider adding gold to your portfolio for the unique benefits they provide, like protecting against inflation and diversifying your portfolio.

And while gold can earn money over time, you shouldn't buy gold as a primary strategy for wealth growth, as the stock market generally outperforms the price of gold over time. As a general rule, aim to keep your gold holdings to less than 10% of your portfolio in gold to help spread out risk.

If you want to invest in gold, compare the top gold companies to find the best one that suits your needs. Request a free investment guide here now and get started.