Gold priceshave been on a roller coaster this year. On March 6, the precious metal’s spot price sat at $5,093 per ounce in the morning, six days after the U.S. and Israel initiated strikes on Iran. Earlier in the year, it peaked at a record high of $5,400 per ounce before sinking back below $5,000.
Gold’s popularity tends to spike in times of geopolitical turmoil and economic uncertainty. It’s long been seen as a safe-haven investment and a store of value that has little correlation to stocks and bonds. If you’re interested in making the precious metal a part of your portfolio, it’s possible to buy gold on your own from several popular online retailers. But some are better than others.
Adding gold bars to your Amazon order of paper towels or shampoo may not be wise. A one-ounce 24-karat Pamp Suisse gold bar listed by independent Amazon seller IROLD costs $7,399. Given the spot price, that’s a markup of about 45%.
The site also shows gram-sized 10- and 14-karat gold bullion sold by independent sellers. The prices for these options vary wildly. However, not all gold is equal — many investment-grade bullions are made from 24-karat gold, which has a purity of .999, or 99.9%. While 14-karat gold is good for jewelry, it doesn’t contain as much gold as 24-karat gold, according to online gold dealer APMEX.
Meanwhile, other retailers sell comparable gold options at significantly lower prices. Costco sells its Pamp Suisse bars for 1% to 2% above the spot price. And Walmart‘s prices fluctuate often, but typically fall between 1% and 10%, a relatively standard markup, according to gold dealerJM Bullion.
When Select asked Amazon why gold sold on its marketplace was priced much higher than similar offerings sold at other retailers, a company spokesperson said Amazon works hard to provide the lowest prices to customers.
“Third-party sellers independently make decisions regarding their inventory, selection, and pricing—and Amazon offers optional tools to support them in offering competitive, low prices,” the spokesperson said in an email.
If you want to invest in gold, buying a bar on Amazon isn’t the only way to include it in your portfolio. Here’s what you need to know.
You can diversify your portfolio with precious metals through these gold IRAs
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Initial Purchase Requirements
Minimum initial purchase requirement of $25,000
Minimum initial purchase requirement of $25,000
Account set-up fee of $50. Storage fees of $100 or $150 depending on storage type. Annual account administration fee of $125.
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Pros and cons of buying a gold bar
If you’re considering buying a gold bar, you should be aware of the benefits and drawbacks.
Pros of buying a gold bar
- Physical investment that you control: If you like the fact that gold is a tangible investment, it may especially appeal to you.
- Easy to buy: You can purchase gold bullion from several major retailers and gold dealers.
- Universally recognized: It’s easy to exchange gold for cash in the future.
Cons of buying a gold bar
- Storage concerns: You need to find a way to keep it secure while keeping it accessible.
- Possible premiums: You may pay a markup of 10% or more.
Open a gold IRA
Investing through a gold IRA solves these issues of storage, and gives you the same tax advantages as a normal IRA. These IRAs are set up by an institution on your behalf, and the gold you purchase is securely held for you. If you retire and need the cash, you’ll have the option to withdraw funds the same way you would from a normal IRA, as the institution buys the gold back and sends you the proceeds.
Some of our top picks for gold IRAs include Goldco and American Bullion. Goldco doesn’t impose a minimum investment amount, making it more accessible. American Bullion offers a wide library of educational resources for those who are new to investing in gold.
Goldco
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Initial Purchase Requirements
Minimum initial purchase requirement of $25,000
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Account Minimums
Minimum account balance of $25,000
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Fees
Account set-up fee of $50. Storage fees of $100 or $150 depending on storage type. Annual account administration fee of $125.
Pros
- Live chat
- No minimum purchase requirements
- Rated A+ by the Better Business Bureau
- Rated Triple A by the Business Consumer Alliance
- Highest buy-back price guarantee
- Charges flat rates for storage fees and maintenance
Cons
- Only offers gold and silver
- Small orders may not be cost-effective due to fees
American Bullion
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Initial Purchase Requirements
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Account Minimums
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Fees
Pros
- Free Storage and no custodian account fees for the first year on accounts of $50,000 or more
- Offers free investment guides and other educational resources
- Stored in the Delaware Depository and monitored 24/7, 365 days a year
- A+ Better Business Bureau rating
- AAA Business Consumer Alliance rating
Cons
- Only available to contact through phone and email, no live chat option
Buy gold ETFs, mutual funds or mining company stocks
Another way invest in gold is through mutual funds orexchange-traded funds(ETFs). These funds track the price of gold, letting you invest in gold the same way you’d own any other fund. Investing in shares of gold mining companies’ stocks could also get you in on the action.
Whichever way you choose to go, you’ll need to work with an investing platform to buy shares. Some of our top investing platforms includeFidelityandE*TRADE, whichallow you to choose from a variety of options, often without commission fees.
Fidelity Investments
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Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go®account, but minimum $10 balance for robo-advisor to start investing
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Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over and this includes access to unlimited 1-on-1 coaching calls from a Fidelity advisor)
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Bonus
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Investment vehicles
Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other:Fidelity Investments 529 College Savings; Fidelity HSA®
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Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
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Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Pros
- No commission fees for stock, ETF, options trades
- No transaction fees for over 3,400 mutual funds
- Limited-time special offers
- Abundant educational tools and resources
- 24/7 customer service
- Over 100 brick-and-mortar branches across the U.S. for face-to-face support
Cons
- Fidelity Go® has a 0.35% advisory fee per year for balances of $25,000 and over
- Some of Fidelity’s mutual funds require reaching specific thresholds
- Reports of platform outages during heavy trading days
E*TRADE
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Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open an E*TRADE brokerageaccount; minimum $500 deposit to invest in robo-advisor platform Core Portfolios
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Fees
Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF and options trades; zero transaction fees for over 4,400 mutual funds; robo-advisor Core Portfolios charges 0.30% annual advisory fee
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Investment vehicles
Robo-advisor: E*TRADE Core Portfolios IRA: E*TRADE Traditional, Roth, Rollover, Beneficiary, SEP and SIMPLE IRAs, IRA for Minors and E*TRADE Complete™IRA Brokerage and trading: E*TRADE Trading Other:E*TRADE Coverdell ESA (Education Savings Account), Custodial Account for minors and small business retirement plans
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Investment options
Stocks, bonds, mutual funds, CDs, ETFs, options and futures
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Educational resources
Educational library includes in-depth articles and videos for any type of investor
Pros
- No commission fees for stock, ETF and options trades
- No transaction fees for over 4,400 mutual funds
- Automated investing through Core Portfolios platform (minimum required)
- E*TRADE Coverdell ESA helps you save for college early on
- Active traders receive volume discounts on options
- Free analyst research and investing tools
- Strong mobile platform
Cons
- Robo-advisor Core Portfolios requires minimum $500 to enroll and charges 0.30% annual advisory fee
- Website may be cumbersome to wade through
- No forex trading
Buying gold FAQs
What is the cheapest way to buy gold?
Do I have to pay taxes on gold?
Physical gold sold for a profit in the future may be taxed as capital gains. The IRS considers gold bars a collectible, so the tax is based on your marginal tax rate up to 28%.
Is it a good idea to buy physical gold?
Buying physical gold can be one way to invest, but it can be difficult to store securely and hard to liquidate into cash in the future. Investing through a gold IRA, with a gold mutual funds orexchange-traded fund(ETF) allows you to avoid these common challenges.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Seeour methodologyfor more information on how we choose the best products.
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