Gold has been a store of value for thousands of years, and in an era of inflation and economic uncertainty, more everyday investors are looking at it seriously for the first time. This guide is for you — no finance degree required.
Physical Gold vs. Paper Gold
Before anything else, you need to decide: do you want to own actual gold you can hold, or do you want exposure to gold prices through a financial product?
Physical gold (coins and bars) is what most people picture. You own it outright. There's no counterparty risk — it doesn't depend on a company or bank staying solvent. But it requires storage and insurance. Paper gold (ETFs like GLD or IAU, or gold mining stocks) is easier to buy and sell through a regular brokerage account. But you don't actually own gold — you own a financial instrument tied to its price.For most first-time buyers who want gold as a hedge or store of value, physical gold is the more meaningful choice. If you just want price exposure without the hassle, a gold ETF works fine.
What to Buy: Coins vs. Bars
If you go the physical route, you'll quickly encounter two main products: coins and bars.
Gold Coins
The most common options for everyday investors:
- American Gold Eagle — the most recognizable U.S. coin, backed by the U.S. government, easy to sell
- American Gold Buffalo — 24-karat pure gold (Eagles are 22-karat), slightly smaller premium over spot price
- Canadian Gold Maple Leaf — another widely trusted option, 24-karat, globally recognized
Coins carry a higher "premium over spot" (the price above raw gold value) because of their collectability and ease of resale. That's normal.
Gold Bars
Bars from reputable mints (PAMP Suisse, Valcambi, Perth Mint) typically carry a lower premium than coins, especially in larger sizes. A 1 oz bar will cost less per ounce than a 1 oz coin.
The tradeoff: bars are slightly harder to sell in small increments, and you'll want to verify authenticity carefully when buying and selling.
For most first-time buyers: start with 1 oz American Gold Eagles or Buffalos. They're instantly recognizable, easy to sell, and your local coin shop will know exactly what they are.Where to Buy Gold
Online Dealers (Recommended for Best Prices)
- APMEX — one of the largest and most trusted online precious metals dealers, wide selection, competitive pricing
- JM Bullion — excellent prices, free shipping over certain amounts, very transparent pricing
- SD Bullion — often the lowest premiums for common products
Always compare prices across at least two or three dealers before buying. Premiums vary more than you'd expect.
Local Coin Shops
Buying locally means no shipping wait, no insurance concerns during transit, and you can inspect what you're buying in person. Prices may be slightly higher than online, but the relationship with a trusted local dealer is genuinely valuable, especially when you're ready to sell.
What to Avoid
- eBay — unless you really know what you're doing and how to verify authenticity
- Unsolicited calls or emails — gold scams are real and target new buyers
- Numismatic coins pitched as investments — rare collectible coins carry enormous markups and should only be bought by collectors, not investors
Storage
Where you store your gold matters.
- Home safe — convenient, but requires a quality bolted-down safe and ideally some discretion about who knows
- Bank safe deposit box — secure, but not FDIC insured and inaccessible when the bank is closed
- Third-party vault storage — companies like Brinks and Loomis offer allocated storage; reputable online dealers often offer this service too
Whatever you choose, make sure your gold is covered by your homeowner's or renter's insurance — or a separate rider — and keep purchase records somewhere safe.
The Bottom Line
Gold isn't a get-rich-quick investment. It's a hedge — a way to preserve purchasing power over time and hold something of value outside the traditional financial system. If that's what you're looking for, starting with a few 1 oz coins from a reputable dealer is a sensible first step.
Start small, buy from trusted sources, store it properly, and don't put more into it than you'd be comfortable holding through years of price volatility.
Disclosure: This article is for informational purposes only and is not financial advice. We are not licensed financial advisors. Precious metals investing involves risk, including loss of principal. Always do your own research.