How to buy gold and silver
Today's investing landscape offers a wide range of assets to choose from. But while investors have plenty to pick from, precious metals, like gold and silver, tend to stand out. That's because, while stocks and bonds generally form the foundation of an investment portfolio, investing in these precious metals can offer something distinctly valuable: powerful portfolio diversification. When market volatility sends traditional investments into uncertainty, these precious metals tend to demonstrate remarkable resilience, sometimes even gaining value during periods of broader market decline.
These unique characteristics stem from gold and silver's dual nature as both industrial commodities and monetary assets. Throughout history, these precious metals have served as stores of value during times of economic stress, political upheaval and currency devaluation. In our modern era, gold and silver continue to play a crucial role in investment strategies, offering a natural hedge against inflation while providing tangible assets that can't be diluted through monetary policy.
For investors considering their first foray into precious metals, the journey begins with understanding the various investment vehicles available. Each approach offers a balance of accessibility, liquidity and direct exposure to metal prices. By weighing these options, you can find the path that best aligns with your investment goals and comfort level.
Learn more about how gold investing can help you here now.
How to buy gold and silver
Here are a few common ways to invest in gold and silver today:
Save for retirement with a gold or silver IRA
A gold IRA (individual retirement account) or a silver IRA can be useful for investing in precious metals for retirement. These self-directed IRAs let you hold physical gold, silver or other assets in an account that qualifies for the tax advantages of a regular IRA.
Because not all financial services companies offer gold or silver IRAs, you may need to open a new account even if you have an existing IRA — but you probably don't have to open separate accounts if you want to buy both types of metals. Another option is investing in assets like gold ETFs through your regular IRA, rather than physical gold.
Fees can be higher for specialized IRAs compared with regular IRAs. You may take on one-time account setup fees, annual management fees and even separate storage fees for the custodian that keeps your gold bullion. However, fees for gold IRAs and silver IRAs can vary, based on a number of factors.
Before you buy in, keep in mind that precious metals can be risky as you near retirement. Although gold investing can be smart for investors of all ages, it may be better for younger ones.
Buy into gold or silver ETFs
Exchange-traded funds (ETFs) have revolutionized how investors access the precious metals market, offering perhaps the most streamlined path to gold and silver investment. These sophisticated financial instruments work by holding large reserves of physical gold or silver bullion in secure vaults and then divide the ownership into easily tradeable shares that mirror the underlying metal's value.
What makes ETFs particularly attractive is their remarkable liquidity and convenience. Unlike physical bullion, which requires secure storage and insurance, Gold ETF shares trade just like stocks through your existing brokerage account. This means you can buy or sell your precious metals position with a few clicks, often at prices that closely track the spot market. The minimal spread between buying and selling prices makes ETFs especially cost-effective for investors who may want to adjust their positions frequently.
While annual management fees typically range from 0.20% to 0.40% for gold ETFs and slightly higher for silver, these costs are often lower than the premiums charged for physical metals or the storage fees associated with bullion. Some popular gold ETFs even maintain fees below 0.20%, making them among the most cost-efficient ways to maintain precious metals exposure in your portfolio.
When selecting a precious metals ETF, consider factors beyond just the expense ratio. Look at the fund's tracking error (how closely it follows the metal's price), trading volume (which affects how easily you can buy and sell), and the fund's physical backing (ensuring each share is fully backed by actual metal). Some ETFs also offer variations like leveraged exposure or futures-based tracking, though these more complex instruments are generally better suited for experienced investors.
Consider individual gold or silver mining stocks
Another way to invest in gold or silver without buying gold bars and coins is to get exposure via stock in mining companies. This is more of an indirect investment. In theory, if precious metals prices go up, then companies that mine those metals would also increase in value. But a number of additional factors can go into stock prices, depending on how these companies operate.
You can buy stock in specific mining companies, much as you would trade tech stocks, for instance. Or, you can buy an ETF that invests in a variety of gold or silver mining companies (or perhaps both). Fees for mining ETFs may cost a bit more than bullion ETFs.
Get started with a gold investment here.
Stick with physical gold or silver
Another option for investing in gold or silver is buying physical bullion. This includes gold bars and gold coins or silver bars and coins. Bars and coins can sometimes have designs or images on them, for which they may be considered collectibles.
Some companies sell physical gold and silver online and ship the bullion to you. However, this may be more expensive than other forms of buying precious metals. You can also find some physical stores that buy and sell gold and silver, but you also will often pay a premium there. The prices of physical gold and silver for purchase may be significantly higher than the current trading price, or spot price, of the commodities.
After purchasing, you must also figure out how to safely store the bullion. Depending on the amount you buy, this could be as simple as a safe in your home or incur added costs for storage at a depository.
The bottom line
Buying alternative assets like precious metals can help you withstand economic fluctuations over time. There are many ways to buy gold and silver, so consider what your goal is with these investments before picking a path. If you like the idea of physically owning gold or silver coins, for example, then you might go down that route, but if you prefer the liquidity and relative ease of trading stocks, then you might buy an ETF or shares of mining companies.
Consider consulting with a financial advisor or trusted professional to see what's right for you. Learn more now!
