Geopolitical conflicts and economic tensions this year have sparked a new wave of interest in gold as an investment. This comes as the precious metal's price has been on a rollercoaster: As of March 10, gold's spot price was $5,226.72 per ounce, down from its record high of $5,400 in January.
When turmoil and uncertainty shake the economy, gold prices tend to spike — after all, gold is a store of value that has little correlation to stocks and bonds. U.S. and Israeli strikes on Iran, as well as the capture of Venezuelan President Nicolás Maduro, caused stock market volatility this year and an interest in the safe-haven investment.
If you want to start investing in gold, it's possible to start at the same places where you buy paper towels and cereal. Costco and Walmart both offer gold bullion, as does Amazon, but the prices aren't as competitive and therefore not our top pick.
Whether you want to buy a bar or invest in the precious metal without storing it, there are several ways to incorporate it into your investment portfolio. Here's what you need to know.
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Buy a gold bar from Costco
The members-only warehouse can be a convenient source for gold bars. Costco sells the popular bars in-store and online, but only members can check the price. What's more, the small markup makes the store attractive to investors: While a standard markup on a gold bar can be as much as 10%, Costco's markup is between 1% and 2%.
There are also opportunities to earn cash back. Executive members can earn a 2% annual reward on all store purchases. Members who also have a Costco Anywhere Visa® Card by Citi are also eligible for an additional 2% cash back on in-store purchases
The Costco Anywhere Visa® Card by Citi is a valuable card to pair with a Costco membership, but the rewards program is more restrictive than what you get with a typical cash-back card.
- High rewards rates for gas/EV charging and travel
- No foreign transaction fees
- Restrictive rewards that you can only cash out once per year
- Requires a paid Costco membership
- No welcome bonus
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Discover one of Citi's best cash back rewards cards designed exclusively for Costco members
- Earn 5% cash back rewards on gas at Costco and earn 4% cash back on other eligible gas and electric vehicle (EV) charging purchases for the first $7,000 combined spend per year, and then 1% thereafter.
- 3% cash back on restaurants and eligible travel purchases and eligible travel, including Costco Travel.
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
- No annual fee with your paid Costco membership and enjoy no foreign transaction fees on purchases
- Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
Balance transfer fee
5% of each balance transfer; $5 minimum
Foreign transaction fee
None
Buy a gold bar from Walmart
Another retail giant offers several gold options. While it does have one-ounce offerings, it also has smaller gram options to make investing more accessible. As of March 10, a one-ounce, 24-karat Pamp Suisse gold bar costs $5,477.80, while a one-gram version of the same bar costs $227.66. That's a markup of about 4.8%.
However, Walmart's gold offerings aren't sold directly by the retailer. The gold options we reviewed were sold and shipped by independent sellers, many of whom are reputable gold dealers themselves.
Buy a gold ETF, mutual fund, or shares of a mining company
Exchange-traded funds (ETFs) are a group of securities bundled into one fund that is traded together. Investing in a gold ETF allows you to buy shares in the precious metal through a brokerage without physically storing the asset.
Mutual funds pool money from numerous investors to buy a diversified portfolio of securities managed by professionals. Gold mutual funds are typically invested in shares of gold mining companies.
You can also invest in shares of mining companies directly. These companies tend to see their share prices rise when gold's spot price climbs.
You'll need to use an investment platform to buy in. Fidelity or E*TRADE are two of our top choices, since both have many ETF and mutual fund options with zero commission fees.
Fidelity Investments
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.
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, which includes access to unlimited 30-minute coaching calls with a Fidelity advisor and tax-loss harvesting on taxable accounts).
Bonus
None currently. Check Fidelity's promotions page for the latest offers here.
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®
Investment options
Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares
Educational resources
Extensive tools and industry-leading, in-depth research from 20-plus independent providers
Terms apply.
Pros
- No commission fees for stock, ETF, options trades
- No transaction fees for over 3,400 mutual funds
- Fidelity Go® portfolios use Fidelity Flex® mutual funds with zero expense ratios
- Human advisors manage day-to-day Fidelity Go® portfolio decisions
- Unlimited 30-minute coaching calls with a Fidelity advisor for accounts of $25,000 and over (at no extra cost)
- Tax-loss harvesting available on taxable Fidelity Go® accounts with $25,000 or more
- Abundant educational tools and resources with research from 20-plus independent providers
- 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
- Fidelity Go® invests only in Fidelity Flex® mutual funds (no third-party ETFs or individual securities available)
- No socially responsible or ESG portfolio option through Fidelity Go®
- Some of Fidelity's mutual funds require reaching specific thresholds
- Reports of platform outages during heavy trading days
E*TRADE
Minimum deposit and balance
Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open an E*TRADE brokerage account; minimum $500 deposit to invest in robo-advisor platform Core Portfolios.
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
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
Investment options
Stocks, bonds, mutual funds, CDs, ETFs, options and futures
Educational resources
Educational library includes in-depth articles and videos for any type of investor; access to Morgan Stanley research and institutional-grade market insights following E*TRADE's acquisition.
Terms apply.
Pros
- No commission fees for stock, ETF and options trades
- No transaction fees for over 4,400 mutual funds
- Core Portfolios offers automated investing with a choice of standard, socially responsible (ESG), smart beta and tax-sensitive portfolio strategies
- Tax-loss harvesting available through Core Portfolios at no additional cost
- Backed by Morgan Stanley’s institutional research and wealth management resources
- 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 with Power E*TRADE for advanced trading
Cons
- Core Portfolios requires $500 minimum to enroll and charges 0.30% annual advisory fee
- No access to certified financial planners through Core Portfolios
- No forex trading
- Website can be cumbersome to navigate
Open a gold IRA
Gold IRAs allow you to hold physical gold or other precious metals in your retirement accounts and are designed to hedge against inflation. These accounts are opened through a company that acts as a custodian of the gold on your behalf, storing it and buying it back if you retire and want to trade it in for cash.
Both Roth and traditional gold IRAs are available, and, much like their standard counterparts, gold IRAs have tax benefits. With a traditional gold IRA, you don't pay taxes on contributions, while withdrawing them at your future income level later. With a Roth gold IRA, you buy with after-tax dollars, and money is withdrawn tax-free in retirement.
Opening a gold IRA is relatively simple. Goldco is a top choice as it allows customers to open a gold IRA with a minimum purchase of $25,000. Another one of our picks is American Hartford Gold for its low, transparent fees.
Goldco
Initial Purchase Requirements
Minimum initial purchase requirement of $10,000
Account Minimums
Minimum account balance of $25,000
Fees
Account set-up fee of $50. Storage fees of $100 or $15, depending on storage type. Annual account administration fee of $125.
Terms apply.
Pros
- Highest buy-back price guarantee
- Charges flat rates for storage fees and maintenance
- Rated A+ by the Better Business Bureau and Triple A by the Business Consumer Alliance
Cons
- Only offers gold and silver
- Small orders may not be cost-effective due to fees
American Hartford Gold
Initial Purchase Requirements
Minimum purchase requirement of $10,000
Account Minimums
Minimum account balance of $10,000
Fees
Annual IRA fee of $75 for accounts valued at $100,000 or less, $125 for accounts valued at $100,001 or more
Storage fee varies with the depository but typically is a flat $100 annual storage fee in most cases
Terms apply.
Pros
- A+ Better Business Bureau and AAA Business Consumer Alliance rating
- Orders are shipped free of charge
- Offers a free Gold & Silver Information Guide
- No initial fee for account setup
Cons
- Lack of educational resources on their site
- The website feels slightly dated and straightforward
Gold investing FAQs
Is investing in gold a good idea?
Investing in gold can be a good way to diversify your portfolio, since it's long been seen as a hedge against inflation. However, investing too much of your portfolio in gold isn't always the right move — it doesn't pay dividends like other types of investments and can be highly volatile.
How can a beginner invest in gold?
One of the best ways for a beginner to invest in gold is to use a gold ETF. Many platforms, including Fidelity, allow you to invest in an ETF in fractional shares. With this method, you can own part of a share for just a few dollars.
What are the drawbacks to investing in gold?
If you're buying physical gold, you'll need to find secure storage. Then, when you're ready to trade it for cash, you'll need a reputable buyer. While a gold IRA solves these issues, fees can add up for these types of accounts.
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