# How to Buy Gold
Investors have two main routes to own gold. Each offers different benefits and drawbacks depending on your goals.
Physical gold comes in bars, coins, or jewelry. Buying bullion coins like American Gold Eagles or Canadian Maple Leafs from reputable dealers gives you tangible ownership. You pay a premium above the spot price, typically 3 to 8 percent, to cover minting and dealer costs. Storage and insurance add ongoing expenses. A safety deposit box at your bank runs $150 to $300 yearly. Home safes work too but require adequate security measures.
Gold securities skip the storage headache. Gold ETFs like SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) track gold prices and trade on stock exchanges like regular stocks. You buy shares through any brokerage account. Expense ratios run low, typically 0.40 percent annually or less. You own no physical metal, but liquidity stays high. Selling takes seconds during market hours.
Gold mining stocks offer another angle. Companies like Barrick Gold and Newmont produce the metal and often pay dividends. These stocks move based on both gold prices and company performance. They carry more risk than pure gold exposure but offer growth potential.
Futures and options appeal to experienced traders only. These derivative contracts let you control large amounts of gold with small upfront costs, but losses can exceed your initial investment.
For most savers, physical coins work best if you want tangible assets you can hold. Gold ETFs suit investors who value convenience and low fees. Mining stocks fit those comfortable with equity risk.
Your decision hinges on portfolio size, storage comfort, and investment timeframe. Someone adding a small allocation to diversify might choose GLD for simplicity. A collector building a legacy might prefer American Gold Eagles despite higher costs. Start with your goals