How to Invest in Gold for Absolute Beginners: Top 10 FAQ Answered

Gold has been around for thousands of years, and it has been used as a medium of exchange since the times of Ancient Egypt. The precious metal has endured various economic cycles while rewarding investors during periods of uncertainty. If you’re a beginner wondering how to invest in gold, this quick guide will give you a head start.

Table of Contents

1. Is now a good time to buy gold?

Gold tends to gain value during periods with high inflation and low interest rates. Any economic and global uncertainties can also boost its value.

Investors who believe inflation will increase while interest rates decrease may want to consider gold. Both things can happen during the next administration, as Trump’s proposed tariffs and firm stance against interest rate hikes can cause gold’s value to soar.

Now may be a good time to buy gold, but it’s important to consider your risk tolerance and financial objectives before committing to any asset.

2. How much is a gold bar worth?

The value of a gold bar fluctuates each day. The value of any gold bar revolves around its weight and the price of a troy ounce of gold.

A troy ounce, which is a unit of measurement specifically used for precious metals, equals approximately 31.1 grams. As of December 26, 2024, a troy ounce of gold was worth $2,637.17. If you look up the price of gold, you will see the price of a troy ounce.

You can run a second calculation to determine the cost of a gold bar. The standard gold bar weighs 400 troy ounces, bringing its total value to $1,054,868. A 400-troy-ounce gold bar weighs 27.4 pounds.

3. What kind of account do I need to open to invest in gold?

You can choose from several gold dealers. It’s good to compare each dealer’s prices, the precious metals they sell, their refund policies, and other factors.

However, if you’re looking for a quick recommendation, you may want to consider American Hartford Gold. It’s our top-rated gold IRA company and gold dealer. The company allows customers to buy gold, silver, and platinum. You can have them shipped to your door or invest in them through one of the company’s precious metals IRAs.

The Best Gold IRA Companies and the Best Gold Dealers

4. Can I own physical gold in my retirement account?

You can own physical gold in a retirement account. First, you’ll have to open a special gold IRA account, which has more regulations than regular IRAs that only hold stocks and funds.

Once you open the account, you can start buying precious metals while capitalizing on the tax benefits. However, you cannot store these precious metals in your home.

Any gold bought in one of these IRAs must be stored in a secure depository. Your IRA provider will take care of storage for you, but that will result in additional fees.

5. Can I get anything free if I open a new retirement account to invest in gold?

Yes, you can receive free precious metals and waived storage fees from gold IRA providers. Typically, you have to invest enough money early or obtain one of their free gold IRA kits to receive the perks. You must complete an online form to obtain a free gold IRA kit. Once you receive kits from multiple IRA providers, you can compare their perks to see which one you prefer.

Anthem Gold Group, for example, has the best intro offer according to our research. It offers up to $25,000 in free gold and silver on qualified purchases and free IRA rollovers with free storage, maintenance, and insurance for up to 10 years if you carry a $25,000 balance the first year, a $50,000 balance the second year, and so on.

However, you shouldn’t let free offers be the sole factor in your decision. Investors should also consider the experience after the excitement from the welcome offer becomes a distant memory. Make sure you aren’t stuck with excessive fees after the welcome period concludes.

6. Will I pay fees to open a gold IRA?

Most gold IRAs have an initial setup fee ranging from $50 to $100. However, that’s not your only cost with a gold IRA. Some of the other gold IRA fees include storage fees, admin fees, and transaction fees.

Storage fees are unique to precious metals IRAs, but other IRAs have other fees as well. Some gold IRAs waive the setup fee and temporarily waive some other fees if you meet their requirements. Gold dealers have different rules about when or if you can waive certain fees.

Whether a gold investment is right for you depends on whether the investment is long-term or for speculation. If the latter, you could purchase gold through an exchange-traded fund, which has the symbol GLD.

I had one client who had a gold IRA and held the gold for 10 years, but even though the value of gold appreciated, the client still lost money due to purchase costs and annual storage fees—so that is something to consider before getting started.

Michael Menninger , CFP®

7. How do I transfer my IRA to a gold IRA?

You will have to roll over the funds from your current IRA to your gold IRA. A gold IRA provider can guide you through the process and provide the necessary paperwork to speed it up.

You will need a self-directed IRA to accumulate precious metals, which a custodian has to set up for you. Investors usually have to contact their current IRA provider during the rollover process. Once the rollover is done, you can buy gold.

8. What are the best gold IRA companies for a beginner?

It’s a good idea to compare several gold IRA companies before choosing the right one for your financial goals. Comparing fees, offerings, and perks will help you narrow your list of options.

Priority Gold, for example, offers an exceptional online experience with educational resources and interactive price comparison charts. New investors can speak to a specialist over the phone or fill out a form to receive a free investor kit.

9. Can I store my gold at home?

You can store gold in your house, but it can’t be affiliated with a gold IRA. Investors who want to store their own gold and open a gold IRA can max out their gold IRAs first. Then, any excess money can go toward buying physical gold and keeping those assets in your home.

Many gold dealers offer gold IRAs and also give you the option to buy physical gold. You can work with the same company or choose a different gold dealer for storing physical gold in your house.

Storing gold from an IRA in your home is treated as a distribution, resulting in early taxes and a 10% penalty if you are younger than 59 ½ years old. It can also result in IRS audits if you store gold in your house designated for your gold IRA.

10. Can I use a personal loan to buy gold?

Yes, you can use a personal loan to buy gold, but we don’t recommend borrowing money to invest. Personal loans give you upfront money that you can use to buy any product, service, or investment, including gold.

Using a personal loan to buy gold only makes sense if the interest rate is low. That way, it’s easier for gold’s returns to outpace the interest you pay on the loan. If gold inched up by 10% this year, but you pay a 12% interest rate, you are down 2% on the investment.

It’s better in most cases to wait until you have enough money to buy gold outright instead of using a personal loan. Using a personal loan for gold can also inhibit your ability to take out loans for other expenses, such as emergencies.

Buying gold will diversify your portfolio and mitigate your risk. Precious metals can gain value even when stocks and real estate lose value.

Investors can choose from several gold IRAs to capitalize on tax advantages while accumulating precious metals. They can also store their own gold outside of an IRA.

Gold’s value tends to rise during uncertainty, high inflation, and low interest rates. All three of those catalysts can push gold prices higher over the next few years.