# How to Buy Gold: Physical Metal and Securities Options
Gold attracts investors seeking a hedge against inflation and market volatility. You have two main routes: buying physical gold directly or investing through securities tied to gold prices.
Physical gold comes in bars, coins, and jewelry. Bullion bars range from 1-gram to 1-kilogram sizes and trade near spot price with small markups. American Gold Eagles and Canadian Maple Leaf coins offer government backing and easy resale. Dealers like APMEX, JM Bullion, and local coin shops handle purchases, though shipping and insurance add costs. You'll pay premiums of 5-15 percent above the current spot price for coins and bars. Storage matters. Keep small amounts at home in a safe, but larger holdings demand safety deposit boxes or vault storage, which charges annual fees.
Securities offer easier entry without physical storage headaches. Gold ETFs like SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) track spot prices and trade on stock exchanges. These require no shipping, insurance, or storage fees. Expense ratios run 0.10-0.25 percent annually. Gold mining stocks and mutual funds provide leverage to gold price moves but carry company-specific risks beyond metal prices.
Futures contracts and options exist for experienced traders willing to handle complexity and leverage.
The choice depends on your goals. Physical gold suits those wanting tangible assets and long-term wealth preservation. Securities work better for income investors, retirement accounts that prohibit physical metals, and those wanting liquidity. Many investors split holdings between both types.
Gold prices fluctuate daily based on dollar strength, interest rates, and geopolitical events. Buy gradually rather than all at once to reduce timing risk. Allocate gold strategically within a diversified portfolio, typically 5-10 percent of total holdings.