How to Invest in Gold and Silver (5 Best Ways)

investing in gold and silver

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The volatility of the stock market and real estate and the low return of savings accounts, money markets, and CDs may have investors wondering where they can invest their money with less risk.

Gold and silver are the investment many are turning toward as a hedge for their portfolios. If you are wondering how to invest in gold and silver, here are the five best ways to purchase precious metals.

During and after the Great Recession of 2008, gold prices rose 100 percent. While past performance does not predict future growth, will gold and silver be a good investment for 2022 and beyond?

Worries about fiat currency, the national debt, and inflation have many saying yes.

Continue reading to find out more about investing in gold & silver and discover the best gold investments for your financial goals and how to invest in gold coins to fund your retirement portfolio.


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1. Gold and Silver IRA

Look at an individual retirement account as a garage and gold and silver as cars. In a gold and silver IRA, you get the tax-deferred advantages of an IRA until you withdraw funds in the investments at retirement age.

Any gains in your gold and silver investments are not taxed until funds are withdrawn. In a traditional IRA, investors can hold stocks, options, and bonds.

Investors with gold and silver IRAs can only hold IRA-approved gold and silver in their IRA account through a third-party custodian.

This lets investors invest in gold coins while planning for retirement. You can contribute a combined $6,000 to all your IRA accounts each year, or $7,000 if you are 50 or older.

Gold and silver IRA investors can begin to withdraw funds at age 59 and a half and must begin making minimum distributions or IRA funds at age 70.

IRAs are self-directed, so you will have control over the gold investments you add to your gold IRA.

Other than the sizable advantage of tax-deferred growth, gold and silver IRAs such as gold IRAs from Goldco give gold and silver investors a way to invest in gold coins while hedging other investments.

You can buy and sell gold investments within your gold IRA to grow the portfolio’s value, but you cannot withdraw funds from the gold IRA without a penalty if you are younger than 59 and a half.

2. Gold and Silver ETFs

ETFs, or exchange-traded funds, are pooled investment funds that behave much like mutual funds. Shares of ETFs are traded on the stock exchange, and some investment platforms allow investors to purchase fractions of ETF shares.

Gold and silver ETFs and precious metal ETFs track the value of these precious metals by holding physical gold or silver.

These physical ETFs have a higher tax rate of 28 percent on long-term capital gains. Funds such as SPDR Gold Trust ETF (GLD) and iShares Silver Trust (SLV) have several advantages.

These funds are liquid, meaning that you can easily buy or sell them on stock-trading platforms. These gold ETFs are generally more affordable than trying to invest in gold coins, plus you don’t have to store the physical gold or worry about its security.

ETF investing does not require the skills that other investing forms might. ETFs generally have low management fees and can be options for beginning investors who want to add exposure to precious metals to their portfolios.

3. Gold and Silver Coins, Bullion, & Bars

If you wonder how to invest in gold and silver, thinking of gold bullion stacked up in a vault, you are not alone. Many invest in gold coins and bullion that they can hold in their hands.

Bullion comes in sizes from several grams to 400 ounces. Since gold is $1,762 an ounce as of August 2022, buying an ounce of physical gold may be more than some aspiring gold and silver investors can afford.

Use a reputable dealer when buying physical gold and silver and insure your investment. Unlike shares of ETFs or a gold or silver IRA, physical gold coins or bullion can be stolen during delivery to you or from your home.

You can pay to have your physical gold and silver stored in a vault or safety deposit box. Investors in gold and silver should keep up with the prices of these precious metals so they will know when to sell investments for profit if that is their goal.

Other gold investors buy and hold their gold investments in hope of long-term profits.

4. Precious Metals Mutual Funds

Mutual funds, investment pools that are professionally managed, include a variety of investments. To attract investors interested in gold and silver, precious metals mutual funds focus on gold and silver bullion as well as mining stocks.

Precious metals mutual funds may also provide investors with exposure to other precious metals such as platinum.

Since precious metals mutual funds invest in one sector, they may be more volatile than mutual funds that invest in equities. Precious metals mutual fund shares can be purchased through stockbrokers as well as online investment platforms.

Since these funds are professionally managed, you do not have to have specialized training when investing in them.

Some mutual funds have a required minimum share purchase that might price out smaller investors.

5. Gold/Silver Mining Stocks

Another answer to how to invest in gold and silver is to buy shares of a gold-mining company. Some ETFs invest in these companies, such as VanEck Gold Miners ETF (GDX).

Junior Miners ETFs are also available. The companies that mine silver and gold can see stock prices rise when the prices of these precious metals rise.

However, keep in mind that you are investing in a company and not in the shiny metal they mine. Consider their financial performance as well as the rising or falling prices of gold and silver.

Shares of gold and silver mining companies’ stocks or ETFs can be purchased through stockbrokers or online trading platforms.

Since these shares are purchased individually and are not part of managed funds, you should understand the basics of buying and selling stocks before purchasing shares.

Are Gold and Silver Good Investments?

The short answer to whether learning how to invest in gold and silver is a good idea is yes. Many investing experts see gold and silver investment as an essential part of a portfolio designed for long-term profits.

If you want to invest in gold coins or add silver to your investment portfolio, understand that this move is usually a hedge against losses in a volatile stock market or troubled economy.

Invest in gold and silver conservatively, committing no more than 5 to 10 percent of your portfolio to precious metals.

Just as timing the stock market is a risky idea, so is trading gold and silver for profits. Most experts recommend holding precious metals for longer-term investing.

Over time, gold has proven to be a hedge against inflation and loss during troubled times including recessions.

Next Steps

In times of volatility in markets and the economy at large, precious metals such as gold and silver can be a hedge against losses.

In troubled economic times, gold and silver tend to rise in value. Learning how to invest in gold and silver can keep your portfolio growing in value over the long term.

If you do not know how to invest in gold and silver, you are not alone. Most people are intimidated by investing.

Luckily for you, we’ve researched the best gold ira companies that can help you invest for retirement.


You may have more questions about how to invest in gold and silver. The answers to these frequently asked questions may help.

Investors who want to invest in gold coins or bullion should have a portfolio of at least $50,000, since buying a single ounce of gold will cost more than $1,700.

Those with less to invest in gold may want to consider gold or silver ETFs or mining stocks.

If you have a 401(k) you left at an old job, the good news is that it can be rolled over into a tax-qualified gold IRA without penalty. These found funds can become your portfolio’s stake in a gold IRA to fuel your retirement plans and dreams.

Following the advice of investing guru Ray Dalio, gold should be part of an “all-weather” portfolio that continues to be profitable even in down markets and troubled economies. In Dalio’s portfolio, 7.5 percent of assets are in gold.

Other investment sectors included in the Dalio “all-weather” portfolio are stocks, commodities, intermediate bonds, and long-term bonds.

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Donny Gamble
Donny Gamble

I’m Donny. An entrepreneur, world traveler, and active investor that is passionate about navigating through the blockchain by investing in precious metals like gold and silver.