Get started freeGold Has Returned 8% Per Year Over the Last 20 Years
Gold hit $2,400/oz in 2025, up from $250 in 2000. As a hedge against inflation and market crashes, gold has outperformed bonds over 20 years. But how should a beginner actually buy gold? Physical bars? ETFs? Mining stocks? Each has different costs, risks and liquidity.
How to Buy Gold: 4 Methods Compared
| Method | Min. Investment | Annual Cost | Liquidity | Best For |
|---|---|---|---|---|
| Gold ETF (GLD, IAU) | $50 (1 share) | 0.25-0.40% | Instant (stock market) | Most beginners |
| Physical gold (bars/coins) | $100+ (small bars) | Storage: 0.5-1.5%/yr | 1-3 days (dealer) | Long-term holders |
| Gold mining stocks | $10+ (1 share) | 0% (no fee) | Instant | Higher risk/reward |
| Gold savings account | $1+ | 0-0.5% | Instant | Small regular buys |
Gold Allocation by Portfolio Size
| Portfolio | Recommended Gold % | Why |
|---|---|---|
| Under $10K | 5-10% | Small hedge, ETF is cheapest |
| $10K-$100K | 5-15% | Meaningful diversification |
| $100K+ | 5-10% | Mix of ETF + physical for security |
The bottom line: a gold ETF is the easiest and cheapest way to start. Buy through your regular brokerage (Fidelity, Schwab, Trade Republic). Physical gold makes sense only above $10K+ and for long-term holding. Build your gold allocation with extra income from I am Beezy.
