How to Invest in Gold: 5 Ways, Costs and Taxes (2026)
There are five main ways to invest in gold: buying physical coins or bars, buying a gold exchange-traded product (ETP), buying shares of gold mining companies, trading gold futures, or holding physical gold in a gold IRA. They differ in what you actually own and what it costs. With physical gold the big cost is the dealer’s spread over the spot price, plus storage; with ETPs it’s the fund’s fees. In the U.S., gains on gold coins and bars are taxed as collectibles, at a maximum rate of 28%, per the IRS. Today’s spot price: gold price per gram and ounce.
The 5 ways to invest in gold, compared
| Way | What you own | Main costs |
|---|---|---|
| Coins and bars | The metal itself | Spread, storage, insurance |
| Gold ETPs | Shares of a product that tracks gold | Fund fees, brokerage |
| Mining stocks | Part of a company | Brokerage; company risk |
| Futures | A contract on gold’s price | Margin, commissions; leverage |
| Gold IRA | Metal held by a custodian | Spread, custodian and storage fees |
1. Buy gold coins and bars
You own the metal. Two things decide whether you pay a fair price, per the CFTC and FINRA:
- The spot price is the current price per troy ounce. Multiply the metal’s weight by spot to get its melt value, and compare it with the dealer’s price.
- The spread is the gap between what a dealer sells for and what it buys back at. Some fraudulent dealers charged spreads above 300%; others charge under 20%.
Bullion coins and bars have a standard investment-grade purity and weight. “Numismatic” coins are rare or collectible, and “semi-numismatic” is “a made-up industry term that really has no special meaning”: such coins are usually not rare and “likely less liquid — harder to sell — than bullion,” the regulators warn.
Then you need somewhere to keep it: storage and insurance are extra costs. When it’s time to sell, compare buyers: where to sell gold.
2. Buy a gold exchange-traded product
Commodity exchange-traded products (ETPs) and pools “offer exposure to metals prices,” say the CFTC and FINRA. They have their own fees and costs, but “you might be able to add them to your existing IRA, and they are fully regulated.” You buy and sell them through a brokerage account like a stock, with no metal to store. Make sure the investment professional or pool advisor is registered.
3. Buy gold mining stocks
A mining company’s shares tend to follow gold, but you’re also betting on the company: its mines, costs, debt and management. A gold price rise doesn’t help a company whose mine floods or whose costs soar. Shares are bought through any brokerage account.
4. Trade gold futures
Futures are contracts to buy or sell gold at a set price on a future date, traded on regulated exchanges and overseen by the CFTC. They use leverage: a small deposit controls a large amount of gold, so losses can exceed what you put in. They’re mostly for experienced traders, not long-term savers.
5. Hold physical gold in a gold IRA
A self-directed IRA can hold only certain coins and bullion, and a trustee must hold them — not you (26 U.S.C. 408(m)). Fees are higher than in a regular IRA: “self-directed IRA fees are typically higher than directed-IRA fees,” per the CFTC and FINRA. Rules, approved coins and scams: gold IRA.
How gold is taxed in the U.S.
The IRS taxes net gains from selling collectibles such as coins at a maximum 28% rate, higher than the 20% top rate on most long-term capital gains. Short-term gains — on gold held a year or less — are taxed as ordinary income, per IRS Topic 409. Mining stocks are taxed like other stocks. Check the tax treatment of any ETP before buying.
How to avoid gold scams
From the CFTC and FINRA:
- Don’t respond to unsolicited calls or emails with an attractive offer.
- Start with well-established local dealers. Retail metal dealers “are not regulated at the federal level”; check complaints with your state attorney general or securities regulator.
- Online, verify the dealer’s physical address and how long it has operated, and search the owners’ names for complaints.
- Get all fees, commissions and the price in writing before paying.
- Be wary of anyone charging extra for “collectible” or “semi-numismatic” coins.
What this page can’t tell you
- Whether gold will go up or down. Nobody knows.
- Which way suits you. That depends on your goals, costs and taxes. This page doesn’t recommend any product or dealer.
This page is information, not investment or tax advice.