Gold IRAs vs. ETFs vs. Physical Gold: The Best Move of 2026
Buying gold can provide your portfolio with a hedge against inflation and diversification. But before you invest, you should find out which car makes the most sense for you.
You can choose to buy physical gold, gain exposure through gold exchange-traded funds (ETFs) and mutual funds or open a gold retirement account (IRA). Read on to learn about each option.
What you need to know about buying virtual gold
Physical gold usually comes in coins and bars. Coins are usually more liquid, but gold bars can be more expensive, depending on how much gold you plan to buy. Some people keep gold in their homes, while others put their gold in a bank safety deposit box or pay a third party company.
Although you will have insurance and potential storage costs, you can avoid ongoing management fees if you own physical gold. Some gold IRA providers have high fees, and gold funds often come with fees. However, physical gold is also a type of gold that is difficult to eliminate.
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What you need to know about gold IRAs
Gold IRAs are self-directed retirement accounts that provide tax benefits as you accumulate gold. These accounts are similar to traditional retirement accounts from a tax perspective, but gold IRAs often come with higher fees. That’s because the custodian buys and stores the gold on your behalf and must follow strict rules set forth by the IRS.
You cannot keep gold stored in a gold IRA at your home or in a bank safety deposit box; it should be by the custodian.
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What you need to know about gold ETFs and mutual funds
Gold ETFs and mutual funds are the most liquid way to invest in gold. Investors can buy and sell shares as they would with shares of a stock fund.
These funds also allow you to skip storage costs and have lower down payment requirements. You can start with as little as $1, which is not possible with most gold investments. However, you don’t have access to physical gold and have to deal with handling fees. However, you can get funds at low cost. The iShares Gold Trust ETF, for example, has an expense ratio of 0.25%, which is reasonable for the ETF industry.
It is also important to look at gold ETFs. Some ETFs, such as the iShares Gold Trust ETF, give you direct exposure to gold price movements. Some ETFs, such as the VanEck Gold Miners ETF, give you exposure to gold miners. These companies do well when gold prices rise, but the fact that these companies have their own funds, gold mines and long-term opportunities means that the performance of a gold mining ETF can vary from gold price movements.
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The best way to invest in gold
Each investor is different, and the best way to buy gold will depend on your preferences.
Investors looking for a physical metal and the ability to hold their own gold should consider physical gold such as coins and bars. Investors who want to enjoy tax benefits should look to gold IRAs while comparing fees. Buying gold ETFs is probably the easiest and most liquid way to get gold exospore.
