How to invest in gold for beginners: How and where to buy it
Editorial staff, J.P. Morgan Wealth Management
- Investors can choose from gold bullion, gold exchange-traded funds (ETFs) and gold stocks, among other options if they want exposure to gold.
- Depending on the type of investment you’re making in gold, you can purchase gold through marketplaces and brokerages.
- The price of gold hit several new records in 2025.
- As an investment, gold can provide diversification because it typically behaves differently than traditional financial assets like stocks and bonds.
Gold is experiencing a resurgence, likely the result of investors seeking diversification from the volatile stock and bond markets. In 2025 gold prices surged, hitting a new record and climbing above $3,500 per ounce. Amid heightened economic uncertainty and trade war fears, it seems that some investors have sought refuge in gold.
As a precious metal and commodity, gold is often seen as an alternative asset that is more resilient to the shocks and volatility of the stock market because its value is not correlated to equities. If you’re looking to diversify your portfolio, investing in gold is one option to consider.
In this guide, we’ll share how to invest in gold (there are more options than just keeping gold bars in your closet) and what to consider before getting started.
How to invest in gold for the first time
Gold may be an asset you consider adding to your portfolio. Not only does it have the potential to hedge against inflation, but it also tends to retain its value during periods of stock market volatility.
If you’re thinking about adding this precious metal to your portfolio, you might not be sure of where to start. Here’s how to invest in gold as a beginner.
Evaluate the types of gold investments available
Are you interested in owning physical gold? Or would you rather invest in gold-backed securities in the stock market? While there’s no right or wrong approach, it’s important to consider your goals and risk tolerance as you decide on the type of investment you want to make.
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Gold bullion
Gold bullion is the term used for physical gold, which can come in the form of bars and coins. Gold bullion typically has a purity of 99.5% or higher. If you’re interested in owning a tangible asset, gold bullion serves as one possible option.
Gold certificates
Gold certificates are financial instruments that represent ownership of a specific amount of gold without requiring physical possession of the metal. They may be issued by banks or private companies like gold dealers or storage facilities.
Gold exchange-traded funds (ETFs) and mutual funds
If you prefer not to own physical gold, there are investment options to consider like gold ETFs and mutual funds.
ETFs trade on stock exchanges just like regular stocks and allow investors to gain exposure to gold in their portfolios without owning the physical asset. There are several types of gold ETFs including:
- Physical gold ETFs, which hold actual gold bullion in secure vaults
- Gold mining company focused ETFs that invest in companies that mine gold
- Gold futures ETFs that use futures contracts to track gold prices
Gold-focused mutual funds are similar to gold-focused ETFs. However, unlike gold ETFs, which trade throughout the day on exchanges, mutual funds are priced and traded once daily. They may also have minimum investment requirements, unlike ETFs, and potentially higher expense ratios.
Gold-focused stocks
Gold-focused stocks allow you to invest in particular companies that mine or trade gold. This can offer exposure to the gold market without physical ownership.
Gold options contracts
A gold options contract gives buyers the right but not the obligation to buy or sell gold at a predetermined price before the option’s expiration date. Investors may purchase gold options to hedge against potential price movements in the gold market without committing to the full price of the underlying asset.
Gold futures contracts
Gold futures are financial contracts that obligate buyers to purchase a specific amount of gold at a predetermined price on a future date. Investors may be attracted to gold futures because they can be used for portfolio hedging against inflation or currency devaluation – usually by sophisticated investors.
Do your research
Once you choose the type of gold investment you may wish to pursue, you should conduct thorough research and due diligence. If you want to purchase physical gold, seek a vetted and trusted source. For example, the U.S. Mint has an authorized purchasers list. These providers sell gold bullion to the public on behalf of the U.S. Mint.
If you want to invest in gold ETFs or gold stocks, you may want to research prices, performance and potential fees.
Buy physical gold or invest in gold in the stock market
After researching gold investment opportunities, you may want to proceed with the purchase of physical gold from a reputable marketplace or an entity from the authorized purchasers list, or to invest in gold on the stock market by purchasing shares of a gold ETF or a gold-focused stock through your brokerage account. Prior to purchase, you may want to conduct due diligence or consult with a financial advisor to make sure the investment aligns with your goals.
Is it good to invest in gold?
Given gold’s recent increase in value, it may be worth evaluating its potential role in your portfolio. Ongoing economic uncertainty and major fluctuations in the market suggest that exploring gold as an investment option could be a timely opportunity, but you should still carefully consider and research any investment.
Whether you should invest in gold depends on your goals. Gold isn’t a traditional investment that yields interest or dividends. Additionally, if you buy physical gold, you’ll want to research how straightforward (or not) it will be to sell.
Is it safe to invest in gold?
Though gold has some tangible benefits, it still carries a level of risk as an investment. Like any other asset class, there can be volatility and uncertainty. Consider your risk tolerance, time horizon and your investment goals to assess the benefits versus risks. Investing in gold ETFs and stocks through the stock market may be a lower barrier to entry than purchasing gold bullion. If you want to invest in actual gold, you should also be aware of scams and do your research to ensure you're dealing with a reputable company.
The bottom line
Gold has been a valuable asset throughout history. Whether it’s through jewelry, gold bars, coins or gold investment options, the precious metal tends to have staying power and can diversify your portfolio during times of uncertainty. If you want to get started and invest in gold, consider your options and research what’s the best fit for you.
Frequently asked questions about investing in gold
Both gold and silver offer distinct opportunities as investment options. Gold is typically seen as a greater storer of value and is often less volatile compared to silver, while silver benefits from industrial demand and is generally more affordable. Ultimately, the choice depends on your individual circumstances.
Opportunities to invest in gold include purchasing gold bullion as a physical asset as well as investing in the stock market via gold ETFs and gold-focused stocks.
Physical gold is available through banks and marketplaces, and investments are available through brokerages.
As with any type of investment, the price of gold fluctuates. Notably, in April 2025, it reached a record high price of more than $3,500 per ounce.
Many factors impact the cost of gold, including supply and demand, geopolitical uncertainty, the value of the U.S. dollar, central bank buying and more.
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Editorial staff, J.P. Morgan Wealth Management
