How to start investing in gold

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With the new year upon us, it’s a good time to reevaluate your investments — what’s working, what’s not, and where you can invest your money to better save and build wealth for the future.

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There are multiple ways to start investing in gold. / Credit: Athitat Shinagowin/EyeEm

For many, gold investments may be appropriate to add to the mix in 2023, particularly considering recent economic developments. Gold tends to be a smart investment during times of inflation, and in recessions it usually gains quite a bit of value. 

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In fact, between 1970 and 1980 — when there were three recessions and inflation reached well into the double digits — gold’s value jumped from $35 per ounce to $850, according to NASDAQ,

Is gold something you’re considering investing in this year? Start by requesting a free wealth protection kit from Goldco now to learn more about this unique opportunity.

How to start investing in gold

There are multiple ways to invest in gold. Here are three ways to get started. 

1. Open a gold IRA

If you’re looking to invest in gold to support your future retirement, a gold IRA can be a good way to get started. These are types of individual retirement accounts that allow you to invest your funds in gold, silver, art, and other collectibles (even wine). Traditional IRAs don’t allow you to invest your money in physical items such as these.

If you choose this strategy, you’ll establish your account with a gold IRA broker, who will set up and manage your account. You can then fund the account, purchase your securities and they will be stored at an IRS-approved facility. 

Gold IRAs can also be used to purchase other gold-related investments, like gold mining stock, gold futures, and gold ETFs (more on these later). There are both traditional gold IRAs, which you’ll fund with pre-tax dollars, and Roth gold IRAs, which are funded with after-tax money. If you’re self-employed, you can choose a SEP gold IRA. 

Learn more about investing in a gold IRA here now.

2. Purchase physical gold

This is the old standard. You purchase gold coins, bullion, or bars and then stow them away somewhere secure for safekeeping. That might mean a locked safe in your closet, a safety deposit box at a bank, or a third-party depository that specializes in storing gold, silver, and other precious metals.

If you do opt for physical gold investments, make sure to purchase from a reputable dealer. Check reviews, see how long a dealer has been in business, and look for complaints with the Better Business Bureau. You can also use the U.S. Mint’s directory if you’re interested in gold bullion. 

3. Invest in gold ETFs

Gold ETFs — or exchange-traded funds — are types of pooled investment funds that allow you to invest in various gold-related companies without actually owning physical gold. Just like investing in stocks, you buy shares of ETFs, with each one containing a small portion of the various companies that the fund contains. 

ETFs can be a smart way to lower your risk and diversify your portfolio since they easily spread your investments out amid various asset classes. They can also be bought in small quantities and traded easily, allowing you to avoid risk and change strategy based on market conditions.

To invest in gold ETFs, you’ll need to open a brokerage account. You can then choose the ETFs you’d like to invest in and the number of shares. If you’re not sure how to go about this, a full-service brokerage is the best option. They can help you select the best ETF investments for your goals and budget.

Why invest in gold?

Gold investment benefits are many. Gold helps diversify your portfolio; it tends to hold its value over time; and it’s a good hedge against inflation. It’s also considered a low-risk investment, as it doesn’t experience the volatility in pricing that most other investment classes do.

Still, it’s not perfect. Generally speaking, gold doesn’t deliver high returns, so it’s not right if you’re looking for a big wealth-builder or a long-term boost in your nest egg.

If you want a steady, safe way to invest your money, though, gold may be it. 

There are many ways to start investing in gold, so if you’re not sure where to begin, reach out to an investment professional. They can walk you through the full range of gold pros and cons and ensure a gold investment is a right fit for your portfolio. 

Start by requesting a free wealth protection kit from Goldco to learn more or explore some top gold companies via the table below.

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