# How to Buy Gold: Physical Metal and Securities Options
Gold investors have two main pathways. You can buy physical gold directly or invest through securities tied to gold prices.
Physical gold comes in several forms. Coins like American Eagle gold coins or Canadian Maple Leafs offer liquidity and easy storage. Bullion bars range from one-gram pieces to kilogram sizes. Local coin dealers, online retailers like APMEX and JM Bullion, and even some banks sell physical gold. Expect to pay premiums above the spot price, typically 3% to 10%. Storage and insurance add ongoing costs if you keep gold in a safe deposit box or home safe.
Gold ETFs and mutual funds offer simpler entry points without physical storage headaches. SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) track gold prices closely. These trade on stock exchanges like regular shares. Expense ratios typically run 0.4% annually. You buy them through any brokerage account.
Gold mining stocks and gold mutual funds provide indirect exposure. Companies like Barrick Gold and Newmont Mining rise when gold prices climb, though mining operations introduce separate business risks. Actively managed mutual funds like VGPMX (Vanguard Precious Metals) let professional managers select mining stocks.
Futures contracts exist for sophisticated traders willing to handle leverage and margin requirements. Gold futures contracts trade on the COMEX exchange. Most individual investors skip this route due to complexity and risk.
Your choice depends on your goals. Physical gold appeals to collectors and those seeking a tangible asset. ETFs suit buy-and-hold investors with modest budgets. Mining stocks attract those comfortable with equity volatility.
Tax treatment varies. Physical gold sales face capital gains taxes. ETFs and mining stocks follow standard investment tax rules. Gold held over one year qualifies for long