# How to Buy Gold: Physical Metal and Securities Options
Investors have two main paths to gold ownership. The first involves buying physical gold directly. The second uses securities tied to gold prices.
Physical gold comes in several forms. Coins like American Gold Eagles or Canadian Maple Leafs offer tangible ownership but carry premiums above spot price, typically 3 to 10 percent. Bars range from one gram to one kilogram, with lower premiums than coins but less liquidity. Jewelry contains gold but rarely trades at fair market value due to craftsmanship markups.
Buying physical gold requires finding a reputable dealer. Local coin shops, certified online dealers, and established auction houses work for purchases. Storage presents a challenge. Home safes offer accessibility but limited security. Bank safe deposit boxes cost $50 to $300 annually but lack FDIC insurance. Professional vault storage through dealers runs $100 to $300 yearly depending on quantity.
Securities provide easier entry without storage hassles. Gold ETFs like SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) track spot prices closely, charging expense ratios around 0.1 percent annually. You buy and sell them like stocks through any brokerage account.
Gold futures and options appeal to experienced traders but carry leverage risks unsuitable for most savers. Mining stocks add leverage to gold exposure since company profits multiply with price moves.
Consider your goals before choosing. Physical gold suits collectors and those wanting tangible assets. Securities work better for portfolio diversification and liquidity. Tax treatment differs too. Physical gold held over one year qualifies for 28 percent maximum long-term capital gains rates, higher than most investments. Securities follow standard capital gains treatment.
Gold prices fluctuate daily based on dollar strength, inflation expectations, and geopolitical events. Most financial advisors suggest keeping gold