The offer mentioned below for Goldco is no longer available.
Gold prices have 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 dealer JM 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.
To be sure, stay vigilant when buying gold from any retailer, as counterfeit bars are a possibility. Avoid them by fully vetting any seller before you buy, checking mint marks and micro-engravings and purchasing gold in tamper-resistant packaging, according to Australian manufacturer and seller The Perth Mint.
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.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Minimum initial purchase requirement of $10,000
Minimum account balance of $25,000
Account set-up fee of $50. Storage fees of $100 or $15, depending on storage type. Annual account administration fee of $125. Terms apply.
Minimum purchase requirement of $10,000
Minimum account balance of $10,000
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
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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.
- 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.
- 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.
American Bullion
Initial Purchase Requirements
$10,000
Account Minimums
$10,000
Fees
$25 set-up fee.
$160 annual account fee.
Terms apply.
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 or exchange-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 include Fidelity and E*TRADE, which allow you to choose from a variety of options, often without 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
Varies 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
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 a 0.30% annual advisory fee.
Investment options
Stocks, bonds, mutual funds, CDs, ETFs, options and futures
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
Educational resources
In-depth articles and videos, access to Morgan Stanley research and institutional-grade market insights.
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
- Active traders receive volume discounts on options
- Free analyst research and investing tools
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
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 or exchange-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. See our methodology for more information on how we choose the best products.
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