How Do I Invest In Gold? 2026 Guide

Gold has had a big year. As of this writing, it’s currently $4,500 an ounce, up about 62% from a year ago and close to the all-time high set in October. With headlines like that, it’s natural to wonder, how do I invest in gold?

Gold’s appeal is not new. As one seasoned investor put it, “everybody knows that gold has stood the test of time. When people ask why gold, I would say that part of that answer is very simple. It’s because it’s always worked.”

This article gives you a roadmap to both physical and paper gold investments, so you can decide which aligns with your financial goals.

Understanding gold as an investment

2025 gave investors plenty to think about. Geopolitical tensions are still high, U.S. deficits keep growing, and trade issues continue to impact the stock market. When everything feels this uncertain, people naturally start looking for stability. That’s when people look at buying physical gold or gold-related financial investments like ETFs.

As one investor put it, “I see gold as a store of value,” adding, “I am not buying gold to try to get rich. I’m buying gold to preserve my wealth from inflation.” That mindset gets to the heart of why people invest in gold.

The prices of actual gold are rising, but the dollar is also losing value. When that happens, it pushes up the price of gold denominated in US dollars. That’s why gold can preserve purchasing power when fiat currencies decline.

Pros of investing in gold

Some of the benefits of investment gold are:

• Inflation hedge: When the dollar loses value through inflation, gold helps keep your buying power. While $100 today won’t buy what it did a decade ago, an ounce of gold still buys roughly the same amount of goods that it did years ago.
• Portfolio diversification: Financial experts usually recommend allocating 5-10% of your portfolio to gold as a way to balance against stock and bond market volatility.
• Crisis protection: Central banks for various countries understand gold’s value better than anyone. The World Gold Council notes it’s ongoing demand for 2026. This is on top of a multi-year buying spree to reduce their exposure to the U.S. dollar.
• Historical track record: Gold has protected wealth and investment accounts for thousands of years across civilizations, currencies, and economic systems. No paper currency can claim this longevity.

Cons of investing in gold

That said, you must understand what gold is NOT. As one investor shared, “A disadvantage of gold is that it is not a productive asset. You’re not buying gold to get rich, and gold’s not going to produce you any income.”

Gold doesn’t pay dividends or interest. It won’t multiply your wealth like a successful business investment might. Instead, gold serves as wealth preservation and portfolio insurance, not a growth engine.

Other drawbacks and risks include:

• Storage and insurance costs: Owning physical gold also means you need to store it securely. There are several options with different costs to consider.
• Volatility: Gold prices can go up and down quickly, especially in the short term. It often rises when there’s economic uncertainty and falls when market conditions improve.
• Opportunity cost: Money you put in the precious metals sector is money you can’t invest in growth assets like real estate. If other assets do well for long stretches, gold can lag behind stocks and other income-producing investments.

Physical gold vs. paper gold

When you invest in gold, there are two basic ways to do it. You can own the physical asset, or you can invest through a financial instrument that tracks the price of gold.

Each option works differently and comes with its own tradeoffs, so the choice affects how gold fits into your investment objectives.

Aspect	Physical gold	Paper gold exchange-traded funds (ETFs)
Ownership	Tangible bars or coins you hold directly or store in secure vaults	Shares in a fund that tracks gold price; no physical possession
Pros	Direct control, zero counterparty risk, ultimate security, long-term store of value, crisis-proof	High liquidity during market hours, low or no storage costs, easy buying/selling through brokerage, fractional shares accessible, instant diversification
Cons	Storage and security costs (0.5-1% annually for vaults), less liquid (finding buyers takes time), high entry barrier at $4,500/oz prices, premiums over spot price	Counterparty risk (fund could fail), no physical asset in crisis scenarios, potential government intervention, expense ratios reduce returns
Best for	Long-term holders prioritizing ultimate security and tangibility, those preparing for worst-case scenarios	Convenience seekers, frequent traders, smaller budgets, investors wanting gold exposure without logistics

Buying physical gold

Owning physical precious metals appeals to people who want direct ownership. You hold gold coins or bars outright, without relying on a bank, fund manager, or financial system. That independence does mean thinking through storage and protection, and those choices come with added costs.

For many investors, that tradeoff is worth it. Physical gold has no counterparty risk. Its value does not depend on a company’s balance sheet or a financial system continuing to operate. It simply holds value on its own.

Buying paper gold

Paper gold that people buy through ETFs has seen strong interest in 2026. About $176 billion flowed into gold ETFs through midyear as investors looked for an easy way to gain exposure without dealing with storage or insurance. ETFs trade during market hours, and you can buy them in small amounts.

That convenience also has trade-offs. Paper gold lives inside the financial system, which is what some investors are trying to avoid. As one observer put it, “if the government wanted to confiscate your gold again (like in 1933), they wouldn’t go knocking door to door. They’re just going to target the gold ETFs on the stock market.”

While that’s a person’s speculation, it does point to the main concern. With paper gold, you are relying on financial institutions and regulations to work and function as expected.

Types of gold investments

When looking to add precious metals like gold to your portfolio, there’s something for nearly every investor profile:

Buying physical gold

You can buy physical investment gold in the form of coins or bars.

Gold coins

Gold bullion coins are the most recognizable form of gold investment and the most common. The Swiss America team found that in 2025, 97.6% of buyers chose gold coins over bars and it’s likely to continue this 2026. Some of the most popular coins for investors are:

• American Gold Eagles
• Canadian Maple Leafs
• South African Krugerrands

These investment-grade coins have premiums over the spot price, which covers minting costs, distribution expenses, and dealer markups.

And while these premiums are higher than bars, coins offer great flexibility. You can buy them in small amounts (1/10 oz, 1/4 oz, 1/2 oz, 1 oz), so they’re more accessible for investors with different budget levels. This can make it easier when you eventually sell.

Gold bars

Gold bars can make more sense for larger purchases since they usually come with lower premiums. You can buy bars in several different weights and sizes, from 1 gram to the massive 400-ounce London Good Delivery bar standard used by central banks.

Larger bars usually carry the lowest premiums, which is why they work best for investors planning to invest $25,000 or more into gold. To be safe, stick with bars from well-known refiners like PAMP Suisse, Valcambi, Perth Mint, or the Royal Canadian Mint, and make sure they come with an assay certificate. This paperwork confirms the bar’s purity and weight and makes resale much easier later on.

Paper gold options

Besides physical gold sales, other ways that people add gold to their portfolio can include paper investments.

ETFs

Most people invest in gold paper assets through ETFs. Instead of buying coins or bars, these funds hold physical gold in vaults and let you buy shares that track the price of gold.

You can buy these funds through a normal brokerage account, and many platforms let you start with fractional shares for just a few dollars.

Gold mining stocks

Mining stocks can fluctuate more than gold itself. When gold prices go up, mining company profits can jump even faster, but the reverse is also true. It’s common to see mining stocks swing 1.5 to 3 times more than physical gold.

Mining stocks do have a couple of advantages over owning gold directly. Many of them pay dividends, usually in the 1% to 3% range, which gives you some income. They can also grow on their own if a company improves operations or makes a new discovery. Large producers like Newmont and Agnico Eagle spread their risk across global operations.

The tradeoff is added risk. These are still companies. Problems with management, debt, regulations, or rising costs can hurt a mining stock even if gold prices are moving higher.

Gold futures contracts

Gold futures are basically a trading tool. They let you control a large amount of gold with a small amount of money and without owning the underlying asset. This sounds appealing until you realize how fast things can go wrong. A small move in gold can turn into a big gain or a big loss almost overnight.

There’s also a lot to manage, like margin rules, daily settlements, and contract rollovers. If you’re not paying attention, they can work against you quickly. Because of that, futures are really meant for active traders who know what they’re doing, not for someone who just wants long-term exposure to gold and peace of mind.

Gold mutual funds

Gold mutual funds also invest in gold-related assets, but they work differently from ETFs. They usually come with higher fees, around 0.5% to 1.5%, and you can only buy or sell them once a day after the market closes.

Because of that structure, they tend to appeal to investors who are comfortable with a more hands-off approach and are less concerned about intraday pricing or trading flexibility.

Investment type	2025 YTD performance	Volatility vs gold
Physical Gold ETFs	+60-61%	1.0x (baseline)
Mining Stocks/ETFs	+50-120%	1.5-3.0x
Futures (embedded in funds)	Strong positive returns	>1.0x with leverage

Key considerations before you invest in gold

When you go to buy gold, just be sure to look at the full picture. Price is only part of the decision. You also need to consider costs, taxes, the ease of future sales, and how gold aligns with the rest of your finances.

Skipping those details can lead to higher expenses or unexpected tax issues.

Gold investing objectives

Investment professionals usually recommend allocating 5-10% of your total portfolio to gold and precious metals. This amount gives you a way to benefit from gold without overexposure to a non-productive asset.

At current prices of $4,500 per ounce, this might mean $5,000-$10,000 in gold for someone with a $100,000 portfolio, or $50,000-$100,000 for a millionaire.

It’s impossible to time the market, so dollar-cost averaging is an approach if you’re concerned about changes in gold prices. Instead of buying all at once, you spread purchases out over time, which takes some of the pressure off short-term price swings.

Also, as one seasoned investor cautions, “Please do not go all in on gold. You want to stay diversified. I like gold a lot, but diversification is key.”

That’s why financial advisors see gold as part of a broader plan, not the entire strategy.

Gold investing costs

Every gold investment has costs that reduce your effective returns. Here’s what you can expect with both physical gold ownership and paper assets.

• Premiums: The gold market trades at spot price, but you’ll buy at a premium above spot.
• Storage fees: Professional vault storage usually runs about 0.5% to 1% of your gold’s value each year. If you own $50,000 worth of gold, that’s roughly $250 to $500 annually. You can also go with a home safe, which has a one-time cost of about $500 for a basic model to $5,000 or more for high-security. You’ll also want to get insurance, which adds an ongoing expense.
• ETF expense ratios: Fees vary here. Some funds charge as little as 0.09%, while others run 0.40% or more. On $10,000, that’s roughly $9 a year versus $40.
• Brokerage fees: Most newer platforms charge zero commissions on ETF trades, but make sure to check your broker’s fee structure. Some charge platform fees or minimum account fees.

Tax implications for 2026

Taxes on gold can be more complex than on stocks, so you’ll want to plan for capital gains tax and potentially sales tax.

Long-term holdings (over one year)

First, the IRS classifies gold bullion as a collectible. If you hold it longer than a year and sell for a gain, the federal tax rate can be as high as 28%. If your tax bracket is lower than that, you pay your normal rate instead.

Short-term holdings (one year or less)

If you sell within a year, any profit gets taxed as ordinary income, which can be as high as 37% for top earners. If your income is over $200,000 as a single filer or $250,000 for married couples, the 3.8% Net Investment Income Tax applies on top of that.

Here’s a comparison of tax treatment:

• Physical gold (held >1 year): Up to 28% federal tax
• Gold stocks/ETFs (held >1 year): 0%/15%/20% based on income bracket
• Any gold (held <1 year): Up to 37% as ordinary income + possible 3.8% NIIT

This difference can be pretty big. If you make $10,000 on physical gold and you’ve held it long term, you could owe about $2,800 in federal taxes. Make that same $10,000 on a gold mining stock, and the tax bill might be closer to $1,500 for someone in the middle tax brackets.

That gap is why some investors choose paper gold in taxable accounts and keep physical gold inside a Gold IRA instead. A Gold or Precious Metals IRA lets your gold grow tax-deferred, or tax-free in a Roth, so you’re not giving up a big chunk of your gains to taxes along the way.

Sales tax

You may have to pay sales tax when you buy physical gold, depending on where you live. Some states exempt gold bullion and coins, while others do not, which can raise your upfront cost.

You don’t pay sales tax on paper gold that trades inside a brokerage account.

Liquidity considerations

Gold ETFs are easy to trade and sell when you need to. You can sell during market hours and usually get out in seconds, with very tight spreads. Sell $10,000 worth of shares, and the cash can show up in your brokerage account within a couple of days.

Physical gold isn’t instant, but it’s still very liquid. You sell through a dealer instead of clicking a button, so the process usually takes a week or two. It involves shipping your gold to the dealer, awaiting verification of authenticity, and receiving a selling quote that includes a dealer spread.

Local coin shops can be faster, though prices are often less competitive than gold dealers. In normal markets, the extra time isn’t a big issue, but it’s something to keep in mind if you ever need cash quickly.

How to invest in gold bullion

When you’re ready to purchase gold, here’s how to get started:

Step 1: Decide how much gold you want

Start with a realistic number. Gold works best as a part of your overall holdings. Think in terms of percentages so it stays balanced as your portfolio changes.

Step 2. Decide what form of gold

In our experience, most everyday investors go with coins. Might be because they’re more recognizable and, for some people, more fun than gold bars.

Step 3. Buy your gold

Once you know what you want, buying gold bullion is very straightforward. Your dealer can help you decide on which products, place the order, and lock in the price.

Step 4. Receive your metals

You’ll receive physical delivery of your precious metals. When your package arrives, verify that the products and paperwork match your order, and keep these records for future reference.

5. Decide where your gold bullion

Decide how you want to store your metals. The right choice is the one that balances security, access, and cost in a way that works for your needs.

How much gold should you own?

Most experts recommend holding gold as a way to reduce portfolio risk. Gold often moves in the opposite direction of other asset classes, so keeping some of your money in gold can help reduce the impact of a financial crisis. Different types of allocations can include:

• 5-10% rule: This has been a common rule ever since President Nixon decoupled gold from the U.S. dollar in 1971. There’s numerous studies on how gold bullion improves overall returns, including recent research recommending allocations as high as 17%.
• 1/3 rule: The 1/3 rule is about diversification within precious metals as a category. It recommends allocating 1/3 of whatever amount you place in metals to be in gold. From there, you’d split the remaining amounts between silver, platinum, or other precious metals.
• Ray Dalio’s “all-weather portfolio”: Ray Dalio introduced the all-weather portfolio in 1996. It recommends allocating 7.5% of your portfolio to physical bullion. The rest of the recommendations include 30% stocks, 55% different types of bonds, and 7.5% in other commodities.
• Follow central banks: Most central banks keep about 10%-20% of their cash reserves in gold. You can follow their strategy and check the latest news on the World Gold Council’s website.
• Conservative investors: Beginning investors might start with a smaller amount, like 2-5%.
• Moderate investors: If you’re more of a middle-ground investor, you’d allocate 5-10% of your portfolio to gold.
• Aggressive investors: Investors who want to further protect their wealth against economic uncertainty or black swan events could use a 10-15% allocation.
• Gold bugs and inflation hawks: If you’re very bullish on gold or you’re very concerned about inflation, you could look at a 15-25% allocation to gold.

Here’s a summary of these approaches:

Approach / Type	Allocation range	Details
Conservative start	2–5%	Small safety net for beginners
Middle ground	5–10%	Balanced way to reduce risk
Bigger hedge	10–15%	For those wanting stronger protection
Heavy gold focus	15–25%	For believers in gold or worried about inflation
Classic rule of thumb	5–10%	Long-used guideline
1/3 metals mix	1/3 of metals	Gold plus silver and platinum
All-weather portfolio (Dalio)	7.5%	From Ray Dalio’s diversified strategy
Central bank style	10–20%	Matches global reserve practices

Work with your financial advisor to see what makes the most sense for your scenario.

Choosing a gold dealer

When you’re looking to invest in gold or other physical metals, be sure to work with a dealer you can trust. Look for companies that have:

• Track record: A dealer with decades in business shows they’ve survived multiple market cycles, not just the latest surge in gold prices.
• Customer reviews: Positive reviews give you insight into how a company treats its clients before and after the sale.
• Education and resources: Good dealers focus on helping you understand how to invest in gold versus just pushing a transaction.
• Industry membership: Being part of groups like the American Numismatic Association shows the dealer follows standards and takes accountability seriously.
• Gold bars with assay certificates: This documentation confirms the bar’s purity and weight, which makes it easier for you to sell later at fair market value.
• Gold coins with authentication: Certificates of authenticity or third-party grading from NGC or PCGS help verify the legitimacy of your coins.

Final thoughts on ways to invest in gold bullion

Adding gold to your investment strategy can help protect against future unknowns like poor stock market conditions, geopolitical crises, or economic uncertainty. It’s a fairly simple investment that works best as part of a long-term strategy.

To learn more about how you can invest in gold and what the best options are for your specific goals, connect with the Swiss America team today!

How do I invest in gold? FAQs

How can beginners invest in gold?

If you’re just getting started with gold investing, it’s good to understand your available options and how gold protects your wealth. You can buy the physical yellow metal itself or paper assets like ETFs and mutual funds. Key things to know are:

• Types of gold investments: Physical gold coins or bars, ETFs, gold funds, and futures/options. Each has its own set of pros and cons, but holding physical metal enables you to own the actual asset.
• Benefits of gold: Gold helps you diversify your portfolio, protects against inflation and uncertainty, and gives you a tangible asset that moves independently of traditional financial investments.
• Key considerations: Work with reputable dealers, understand the fees and storage options, and consider gold a long-term investment versus something you trade frequently.

How much gold does $1000 buy?

As of this writing, gold trades at $4,500 per ounce. This is the spot price, which is different than the retail price you’ll pay when you go to actually buy gold. If you have $1,000 to invest in gold, options include:

• Gold coins: You can buy gold coins in fractional sizes under an ounce, including 1/20 oz, 1/10 oz, 1/4 oz, and 1/2 oz. For $1,000, you may be looking at 1/10 or 1/20 ounce, depending on retail pricing.
• Gold bars: Bars come in even smaller fractional sizes, ranging from 1 gram to 1/2 ounce. Note that certain brands of bars may have higher premiums than others, so work with your precious metals dealer on options.

How much money to invest in gold for beginners?

There’s no set dollar amount that works for everyone. Most beginners focus on starting small and keeping gold as a certain percentage of their overall portfolio.

• Start where you’re comfortable: Some people begin with a few thousand dollars just to get familiar with owning gold. Others wait until they can make a larger purchase to reduce premiums.
• Avoid going all in: Gold works best as a complement to other investments, not as your entire portfolio.
• Plan to add over time: You don’t have to buy everything at once. Many investors use dollar cost averaging for buying physical gold over time.

The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.