Best Ways To Invest In Gold For Beginners In 2025

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Here are the best ways to invest in gold for beginners in 2025:

Gold futures. Offers leveraged exposure to gold prices.
CFDs (Contracts for Difference). Trade price movements without owning gold.
Gold-based ETFs. Buy shares of gold without physical storage.
Stocks of gold miners. Invest in companies mining gold.
Gold coins. A tangible and collectible investment.
Gold bullion.Buy physical gold in bars or coins.
Gold jewelry. Invest in gold as both asset and wearable.
Gold-backed cryptocurrency. Digital gold tied to physical assets.

If you're new to precious metals investing, you may be wondering where to begin. This guide explains why gold remains a reliable investment option and highlights key factors to consider when investing in gold to help you make informed decisions.

Top ways to invest in gold 2025

Gold is a precious metal that offers great security. This makes it a top choice for investors and traders who are looking to create wealth.

People usually invest in gold through futures, ETFs, gold stocks, and physical metals. But some of those methods may be better than others. That's why we're going to take a look at the eight ways that you can invest in gold in 2025.

Gold futures

Gold futures are standardized contracts to buy or sell gold at a specified future date. They allow investors to trade gold's value without physical possession. Major exchanges like CME and COMEX offer gold futures, with entry costs starting as low as $10 per contract, varying by exchange. Trading is available 24/7 through brokers with access to futures exchanges.

High leverage potential. Gold futures allow you to control a large position with a small upfront margin but be cautious as this increases your chances of higher profits and bigger losses.
No physical storage needed. Unlike physical gold, you don’t need to worry about storage or insurance costs, saving money for big trades.
Benefit from short-term price moves. Gold futures are great for quick trades during volatile periods when global events impact gold prices.

High risk of margin calls. If the market moves against you, brokers may ask for extra money fast, which can strain your cash flow.
Expiry and contract rollover costs. Futures contracts expire and need to be renewed, which can cut into your profits over time.
Requires quick decisions and research. Trading gold futures needs careful research and decisions based on global economic trends, making it less beginner-friendly.

CFDs

CFDs are contracts that have an asset as their underlying, which means you don't purchase the asset but rather trade on it.

Different exchanges offer different types of CFDs, including gold commodities. If you're interested in trading on commodity CFDs, then there are plenty of online brokers available for your needs. The entry threshold is very low when compared to standard markets, as most platforms will allow you to open a free account with just a few dollars in capital.

Low upfront investment needed. CFDs let you trade gold with minimal funds, making it easy to start with low capital.
Profit from rising or falling markets. You can take long or short positions, which lets you profit in both directions.
No storage or delivery fees. Since you don’t own physical gold, there are no extra costs for storage, insurance, or delivery.
Quick execution during volatility. CFDs help you respond to price swings quickly during market spikes, so you can act fast.

High risk of losing more than invested. Leveraged trades can lead to bigger losses than you put in if the market moves against you.
Overnight fees can reduce profits. Keeping positions open overnight adds extra charges that reduce your gains over time.
Dependent on broker reliability. Your returns depend a lot on the broker’s prices and spreads, which can change during volatile times.

Gold-based ETFs

ETFs are funds that are made up of assets like stocks. You can purchase ETFs on the stock market just like you would purchase any other stock. Gold ETFs are exchange-traded funds that track the gold price.

The aim of this ETF is to give investors a way to gain exposure to the gold price without having to take delivery of the metal because it trades like a stock and not as a physical commodity.

Gold ETFs can be traded on the stock exchange. There are also many brokers that offer stock trading facilities, including Gold ETFs. Some ETFs include shares of gold mining companies.

Lower costs than physical gold. Gold ETFs save you storage and insurance costs, making them a cost-effective gold investment without the hassle of physical ownership.
Easier to trade quickly. Gold ETFs can be traded like stocks during market hours, which lets you sell quickly when prices change.
Offers portfolio diversification. Gold ETFs protect against inflation and economic slumps without locking your money in physical assets.

No physical gold ownership. You don’t own actual gold bars or coins, which can be disappointing if you prefer tangible assets for security.
Subject to management fees. Even though lower than mutual funds, gold ETFs have fees that can gradually eat into your profits, especially for long-term holdings.
Market risks apply. Gold ETFs are affected by the overall stock market mood, meaning prices can move even when gold prices stay stable.

Stocks of gold miners

There are many stocks available that can be purchased as an investment in gold. These stocks are referred to as gold miners or gold shares, and they represent companies that extract and process gold. As with any stock, the value of these companies fluctuates based on several factors, but generally speaking, the higher the price of gold, the more money these companies make.

Below you can see how gold prices have affected the two major mining companies in the past six years.

Gold prices of mining companies over the last six years
Year	Gold Price (Average)	Annual % Change	SPDR Gold Shares (GLD), avg	Annual % Change	iShares Gold Trust (IAU), avg	Annual % Change
2024	$1,950.00	5.00%	$183.00	5.20%	$36.50	5.10%
2023	$1,857.14	2.50%	$173.90	2.60%	$34.70	2.55%
2022	$1,812.50	-0.50%	$169.50	-0.60%	$33.85	-0.55%
2021	$1,821.00	-3.60%	$170.50	-3.70%	$34.00	-3.65%
2020	$1,888.00	25.10%	$176.90	25.20%	$35.30	25.15%
2019	$1,509.00	18.90%	$141.30	19.00%	$28.20	18.95%

Potential for high returns.
Suitable for long-term investment.
Relatively inexpensive compared to other types of share investing.
Shareholders can receive dividends from company profits.

High risk involved.
Annual fees may apply.

Golden coins

Investing in gold by buying physical coins is a very simple process, which would seem to be an advantage. The Golden coin is a denomination of the currency. A denomination (sometimes called a face value) is the name given to a coin or paper money by a government.

There are some differences between physical gold and coins: the coins are smaller in size, so they are more affordable for small investors. Their weight is certified by a mint (20 pieces of coin weigh 1 troy ounce). The gold coins can be sold to a smelter, which pays you cash for them. You can buy gold coins online or at any local coin dealer near you.

Historical value adds prestige. Some gold coins have added value from history, making them worth more than their gold content due to collector demand.
Easier to liquidate in emergencies. Gold coins are easily recognized everywhere, making them simple to sell quickly when you need cash.
Tangible asset protection. Gold coins offer peace of mind since they don’t rely on online systems or financial institutions.

Higher premiums over spot price. Gold coins often come with extra fees for production and uniqueness, meaning you’ll pay more than the gold’s market price.
Risk of damage or wear. Scratches or dents from improper handling can reduce a coin’s resale value, especially in collector markets.
Limited price tracking convenience. You’ll need to check prices yourself, unlike ETFs or digital gold, where values update automatically.

Gold bullion

Gold bullion is a precious metal that comes in the form of a bar or coin. Gold bullion allows investors to capitalize on the price of gold and is one way to invest in gold. Investors buy and sell gold bullion as an investment, usually with the hope that they will be able to sell it later on at a higher price.

Gold bullion can be purchased from many financial institutions, such as banks. However, keep in mind that there are large differences between different institutions regarding their commissions, prices, offers, and more. But they are also available through private vendors or online companies.

Tangible ownership. Gold bullion means you own it outright, making it more reliable if digital systems ever crash.
No counterparty risk. Unlike ETFs or futures, gold bullion is in your control entirely without middlemen or financial institutions.
Wealth preservation against inflation. Gold bullion can protect your savings when inflation is high or currencies lose value.

High upfront costs. There are extra costs for buying bullion, including storage and insurance, which may make it pricey for small investors.
Storage and security concerns. Keeping physical gold safe may cause extra costs or safety issues if you store it at home.
Liquidity challenges. Gold bullion can be hard to sell fast without accepting lower prices, especially for large or unusual bars.

Jewelry

Gold is used to make jewellery because it is beautiful and durable. It is also used as an investment instrument because it carries a higher value than other metals like silver or copper. Jewellery made from gold cannot be broken or destroyed due to its strength and resistance to external and internal factors.

Gold Jewellery can be purchased through mining companies or online dealers that offer physical delivery. The low threshold entry in the investment in gold is due to the fact that it's easy to acquire.

Dual-purpose investment. Gold jewelry serves as both an emotional and financial keepsake, making it something you can wear and pass down as a family heirloom.
Easier to liquidate locally. Jewelry stores and pawnshops offer quick cash compared to waiting for formal gold investments to process.
Hedge against inflation. Gold jewelry helps protect your savings from inflation, retaining its value during economic downturns.

High making charges. Making charges, especially for detailed designs, can add significantly to the cost and can’t be recovered when you sell.
Purity concerns. Jewelry may have lower karat ratings or impurities, especially if bought from unreliable sellers, which can lower the amount you get when selling.
Market-dependent resale value. Selling gold jewelry often sells for less than market price, especially if the design is outdated or too customized.

Gold-backed crypto

Gold-backed cryptocurrency means that each coin has a certain weight of gold stored away safely in vaults somewhere in a secure location. This is what gives stability to the coin and makes it less volatile compared to other digital currencies like Bitcoin.

The main reason why gold-backed crypto is popular amongst investors is that the crypto coins are backed by gold, and this adds more stability to the digital currency and makes it more attractive for investors to invest in.

High-profit potential.
Greater liquidity and flexibility.
No expiry date or minimum holding period.

No ownership of physical assets.
Security issues related to cryptocurrency.
Operates in an unregulated market.

What is the best way to invest in gold for beginners?

For beginners, the best way to invest in gold is through ETFs or mutual funds, as they provide exposure to gold without the need for physical possession, offering liquidity and ease of trading with lower costs.

When starting, consider factors like the current gold price, your investment amount, and time horizon. For smaller investments, ETFs and gold stocks are beginner-friendly options, providing diversification and simplicity. For larger investments, physical gold like coins or bars and futures contracts may be better suited, though they come with additional storage and risk considerations.

Tips for successful gold investing

Understand your investment goals. Define your objectives, such as hedging against inflation, diversification, or safe-haven investing.
Diversify your investments. Combine gold with other asset classes like stocks, bonds, and real estate for a balanced portfolio.
Stay informed about market trends. Follow geopolitical events, economic data, and interest rate changes to make informed decisions.
Consider costs and storage. Account for storage fees, insurance, and transportation costs when investing in physical gold.
Evaluate different investment options. Compare physical gold, ETFs, mining stocks, and other methods based on their pros and cons.
Monitor your investments. Regularly review performance and adjust your strategy as needed to stay aligned with your goals.
Have a long-term perspective. Focus on long-term strategies, as gold tends to maintain value over time despite short-term fluctuations.

Best brokers to invest in gold

Here are some of the best platforms to invest in gold in 2025:

Best brokers to invest in gold
	Min. deposit, $	Max. leverage	Investor protection	Open an account
Eightcap	100	1:500	£85,000 €20,000	Open an account Your capital is at risk.
XM Group	5	1:1000	£85,000 €20,000	Open an account Your capital is at risk.
RoboForex	10	1:2000	€20,000	Open an account Your capital is at risk.
Exness	10	1:2000	€20,000 £85,000	Open an account Your capital is at risk.
VT Markets	100	1:500		Open an account Your capital is at risk.

How to invest in gold for beginners online?

Investing in gold online might feel overwhelming at first, but it’s manageable when you break it into steps. Here's a quick guide to the four main steps for starting your gold futures or CFDs investment journey.

Step 1: Research the market

Gold’s value fluctuates, so start by analyzing market trends. Decide whether to invest in physical gold (bullion), ETFs, or futures contracts, each with its own risks and rewards. Consider your budget and how much gold you want in your portfolio.

Step 2: Open a brokerage account

Choose a reputable, low-cost online brokerage that meets your needs. Opening an account is quick and simple — register on the broker's website, create a username and password, and provide ID verification if required. For example, Admiral Markets offers an easy setup process.

Step 3: Fund your account

Link your debit card, credit card, or bank account to deposit funds. Check for deposit fees before transferring money. If you’re new, try a demo account first to explore the platform without risking funds.

Step 4: Start buying gold

Once your account is funded, purchase gold assets while keeping an eye on trading costs. Brokers may charge per trade or a one-time fee, so review these charges before investing.

Is investing in gold a good idea in 2025?

Investing in gold can be a good idea depending on your financial goals, market conditions, and risk tolerance. Here's a breakdown of its pros and cons to help you decide:

Hedge against inflation. Gold tends to retain value over time, protecting against the eroding effects of inflation.
Safe haven asset. During economic uncertainty or market downturns, gold often performs well as investors flock to it for stability.
Portfolio diversification. Adding gold to your portfolio can reduce overall risk by balancing volatile assets like stocks.
Tangible asset. Unlike stocks or bonds, physical gold is a real, tangible asset that holds intrinsic value.

No passive income. Gold doesn't generate interest, dividends, or cash flow like other investments.
Market fluctuations. Gold prices can be volatile, especially in the short term, reacting to geopolitical and economic events.
Storage and insurance costs. Physical gold requires secure storage and may incur additional costs for insurance.
Lower long-term returns. Historically, gold’s long-term returns have been lower than equities or real estate.

Digital gold ownership and bonds for beginner-friendly gold investing

One unique way to start investing in gold is by choosing fractional ownership of gold bars through trusted digital platforms. This allows beginners to buy small amounts of physical gold without worrying about storage or security. Unlike traditional ETFs or jewelry, fractional ownership provides transparency as each purchase is tied directly to real gold stored in insured vaults. This option is ideal for those who want the safety of physical gold without large upfront investments.

Another lesser-known approach is to consider gold-backed bonds offered by governments during specific periods. These bonds offer the dual benefit of gaining exposure to gold prices while also earning periodic interest payments — something physical gold cannot provide. Additionally, these bonds are free from storage fees and come with tax benefits in many regions, making them an efficient and safer way to invest in gold over the long term.

Conclusion

Investing in gold remains a popular choice for beginners and experienced investors due to its reliability as a store of value and a hedge against inflation. With multiple options like gold ETFs, futures, bullion, and digital gold, there is a suitable method for every type of investor. To maximize your returns, it’s crucial to assess your financial goals, risk tolerance, and market trends before choosing an investment method.

Gold-backed bonds and fractional ownership platforms offer beginner-friendly ways to gain exposure to gold without large initial investments or storage concerns. By staying informed and diversifying your portfolio, you can confidently navigate the gold market and make sound investment decisions that align with your financial objectives.

FAQs

Is physical gold a good option for beginners?

Physical gold is tangible and easy to understand but involves storage, insurance costs, and lower liquidity compared to other options.

What are gold ETFs and why are they beginner-friendly?

Gold ETFs track the price of gold and allow beginners to invest without the hassle of storage or insurance, offering flexibility and liquidity.

Should beginners invest in gold mining stocks?

Mining stocks can offer higher returns but are riskier as their performance depends on company operations and gold prices.

Is buying gold illegal?

Gold investment is legal. Regulated brokers and exchanges are controlled by the government. However, many unregulated entities offer gold investments. If you trade with them, it's your responsibility for your investment safety.

Team that worked on the article

Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses that want to improve their Google search rankings to compete with their competition. With expertise in search engine optimization (SEO) and content marketing, he ensures his work is both informative and impactful.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Diversification

Diversification is an investment strategy that involves spreading investments across different asset classes, industries, and geographic regions to reduce overall risk.

CFD

CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.

Volatility

Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.

Futures contract

A futures contract is a standardized financial agreement between two parties to buy or sell an underlying asset, such as a commodity, currency, or financial instrument, at a predetermined price on a specified future date. Futures contracts are commonly used in financial markets to hedge against price fluctuations, speculate on future price movements, or gain exposure to various assets.

Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.