Where can you buy gold?
In times of inflation, stock market uncertainty and concern in the banking sector like we're experiencing now, many investors turn to gold to support their holdings. These issues and other risk indicators may have you taking a second look at your portfolio and thinking about new ways to invest your money.
If you're investigating gold as an investment option, you can choose from several investment options. Start by requesting a free information kit to learn more.
Before beginning the process, it may be valuable to understand the different types of gold you can invest in and the actual places and locations where you can actually buy gold.
Where can you buy gold?
If you want to invest in precious metals, there are several options you can consider. Here are the types you can buy - and where you can buy them.
Gold IRAs
You can own gold in traditional gold IRA, Roth gold IRA or a Simplified Employee Pension (SEP) gold IRA that are tax-advantaged and structured like their standard counterparts. However, the IRS mandates that your precious metal is stored through an IRS-approved custodian who can arrange for your gold to be stored in a depository.
A company like Goldco can help you get started with a Gold IRA now.
Where you can buy gold IRAs
Gold IRA investments are typically available through precious metal companies that assist you in opening your self-directed IRA account. The company also helps you select a custodian who purchases gold on your behalf. Goldco, Birch Gold Group and Augusta Precious Metals are a few gold IRA companies commonly used by investors.
Physical gold
Physical gold is typically sold in two forms: bullion or coins.
- Gold bullion: Bullion is the bulk form of gold, and the most common forms are what people often think of when talking about gold—gold bars or coins. Gold traded on the market must be 99.5% pure, and you can purchase the yellow metal in different weights ranging from one gram (currently less than $100) to 400 ounces (roughly $700,000).
- Gold coins: You may need insurance or a secure storage facility to protect gold bars, but gold coins are relatively easy to store—usually weighing one ounce or less—and are more liquid.
Where you can buy physical gold
You can invest in physical gold in several ways, including purchasing through an online dealer or at a local dealer or pawn shop. Monitor the price of gold, so you're not at a negotiating disadvantage. Keep in mind, you may pay a lower premium if you buy gold in large amounts because there's less processing than with coins.
Gold coins are typically intended to be both collectibles and investments. Several governments produce gold coins, including the U.S. Mint and Royal Canadian Mint. Private mints also make gold coins.
Gold ETFs
Gold exchange-traded funds (ETFs) are a convenient option to get in on the gold action without having to store large bars securely. You can purchase shares in an ETF that owns gold in a physical vault, but you can execute that ETF trade from a computer or device anywhere with an internet connection.
Where you can buy gold ETFs
You can buy gold ETFs through a brick-and-mortar or online brokerage. As such, you can easily exchange your gold for cash, making the investment highly liquid. Two of the most popular ETFs in the United States are SPDR Gold Shares ETF (GLD) and iShares Gold Trust ETF (IAU). Learn more now or use the table below to explore your gold-buying options.
Gold mutual funds
Like ETFs, gold mutual funds offer you access to a piece of the gold market with a fund that invests in the precious metal or owns shares in companies producing gold. Gold mutual funds may be more affordable and diverse than individual stocks. Another benefit is that you don't have to research the gold mining companies you invest in; the fund's manager will do that for you.
Where you can buy gold mutual funds
Like gold ETFs, gold mutual funds are available through a brokerage. Before investing, review the fund's overall performance, yearly returns and asset allocation. Investing in gold mutual funds may be more cost-effective than owning physical gold bars or coins.
Gold mining companies
Many investors opt to invest in gold mining companies, especially when gold prices are rising. You may profit both when gold prices rise and if the mining company increases production. Be aware, however, that not all mining companies are managed well, and poor-performing enterprises could impact your share price.
Where you can buy gold mining companies
Investing in individual gold mining companies is achieved through a brokerage or investing app. You'll want to thoroughly research any company you're considering for your gold investment.
Gold futures
Futures are contracts you can trade with other speculators seeking to profit by betting they will reach a specific price by a specific settlement date. Exercise caution with gold futures because you can lose more money than you put into your initial investment. Depending on how the contract is structured, you could actually owe money on the contract. Many investment experts recommend gold futures only for more experienced traders.
Where you can buy gold futures
You can buy gold futures contracts on the New York Mercantile Exchange through a full-service broker that offers futures trading. You'll fund your account and trade gold futures through your account in the same way you trade stocks through your brokerage. Contracts are typically for 100 troy ounces quoted in U.S. dollars per ounce.
The bottom line
Investing in gold may not make sense for everyone, depending on your unique financial situation. Each type of gold investment comes with a set of pros and cons you should fully understand before investing. But with so many different types of gold investments, you may find an option that suits your needs and helps to diversify your portfolio.
