The $100‑a‑Month Starter Plan for Gold First-Timers

It’s probably no surprise that gold is expensive: An ounce of it costs roughly $4,500 as of mid-January.

But if you want to invest in the precious metal, it’s possible to do so with much less money than that. Here’s how you can build up your gold reserves even if you only want to spend $100 per month on this asset.

How dollar‑cost averaging into gold works

Dollar-cost averaging is a popular strategy that involves investing a set amount of money at regular intervals. The method allows investors to ride the ups and downs of the market, buying fewer shares when prices rise and more when they dip. The idea is that you can manage risk, avoid emotional reactions to market moves and stick to your long-term plan. One way to do this with gold is by investing $100 each month.

While spending $100 a month on physical gold would be complicated, you can dollar-cost average into a gold exchange-traded fund (ETF), such as SPDR Gold Shares ETF (GLD) and iShares Gold Trust (IAU).

Investors who diversify into several assets may choose to ramp up gold purchases during dips and reduce how much gold they buy during upswings. That approach makes more sense for investors who closely monitor their portfolios and invest across multiple asset classes and sectors, so dollar-cost averaging may make sense for most investors.

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What a $100‑a‑month plan can realistically achieve

Investing $100 per month may not sound like much, but the investments and compounded returns can add up in the long run. If you continue that habit, you will have invested $3,600 over three years. The amount of physical gold and shares you can buy with $100 will vary each month.

Past performance doesn’t guarantee future returns, but an analysis from Ben Carlson, Director of institutional asset management at Ritholtz Wealth Management, found if you consider all the precious metal's yearly performances between 1928 and 2025, you’re looking at an annualized return of 5.6%.

Investors should see how much the fees will cost before investing in any gold fund. This total cost is reflected in the expense ratio. If you go the physical gold route, don’t forget to consider shipping, storing and insurance costs.

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Pros and cons of investing $100 a month

Starting with $100 monthly investments makes it more feasible to accumulate gold. You also get to start right away instead of feeling like you have to save enough money to buy an ounce of gold. Investors who can keep this habit up for the long term will be the most rewarded. Small money habits compound and can bring you closer to your financial goals.

Investing a little bit in gold each month can diversify your portfolio and make it more resistant to inflation. If you don’t have $100 available to invest each month, you can start with smaller intervals and gradually build your exposure to gold. You can also boost your monthly investments higher than $100 if you believe it makes sense for your portfolio. It’s good to periodically review your holdings to ensure you have the right amount of diversification for your risk tolerance.

On the downside, you may have to invest consistently and for years (or decades) to earn the returns you want. You will also incur fund fees if you buy an ETF or mutual fund that offers exposure to gold, but they’re often low.

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