Investing in physical gold is one of the oldest and most reliable forms of wealth preservation. Whether you’re a first-time buyer or looking to expand your precious metals portfolio, this guide covers everything you need to know about getting started.
Why Physical Gold?
Physical gold offers several advantages over paper gold investments like ETFs or futures contracts. You hold the actual metal, eliminating counterparty risk. Gold coins and bars are highly liquid and recognized worldwide. And physical gold provides a hedge against systemic financial risks that could affect paper assets.
Types of Physical Gold
Gold Coins: Government-minted coins like the American Gold Eagle, Canadian Gold Maple Leaf, and South African Krugerrand are popular choices. They carry a higher premium over spot price but are highly recognizable and liquid.
Gold Bars: Available in sizes ranging from 1 gram to 400 ounces, gold bars typically carry lower premiums than coins. Larger bars offer the lowest cost per ounce but can be harder to sell in partial amounts.
Fractional Gold: Half-ounce, quarter-ounce, and tenth-ounce coins provide more flexibility for smaller investors or those who want to sell in smaller increments.
Where to Buy
Reputable online dealers like OwnX offer competitive pricing and secure delivery. OwnX allows you to start buying gold for as little as $25 through their dollar-cost averaging program, making gold investment accessible to everyone.
When choosing a dealer, look for transparent pricing, insured shipping, buy-back programs, and a strong reputation. Avoid deals that seem too good to be true — if the premium is significantly below market rates, proceed with caution.
Storage Considerations
Once you own physical gold, secure storage is essential. Options include home safes, bank safe deposit boxes, and third-party vaulting services. Each option has trade-offs in terms of cost, accessibility, and insurance coverage.
Getting Started
The best approach for most investors is to start small and build a position over time through regular purchases. This dollar-cost averaging strategy reduces the risk of buying at a peak and helps smooth out price volatility.