How to Invest in Gold
The best vehicle depends on your time horizon, tax jurisdiction, and whether you want price exposure or physical possession.
Six main routes
- Physical bullion — direct ownership, 3–6% premium, storage cost.
- Gold ETFs (GLD/IAU/SGOL) — liquid, 0.17–0.40% expense.
- Gold mining stocks (NEM/GOLD/AEM) — operational leverage.
- Gold futures (COMEX GC) — capital-efficient, margined.
- Allocated vault storage (BullionVault, Goldmoney) — ~0.12%/year.
- Gold IRA (US) — tax-advantaged retirement.
How much to hold
Mainstream advice: 5–10% of a diversified portfolio.
Common mistakes
Paying numismatic premiums for bullion exposure; uninsured home storage; confusing physical-backed gold ETFs with miner ETFs like GDX.