Gold IRAs vs. ETFs vs. Physical Gold: The Best Move for 2026 Retirees
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Buying gold can offer your portfolio a hedge against inflation as well as diversification. But before you invest, you have to figure out which vehicle makes the most sense for you.
You can opt to buy physical gold, get exposure via gold exchange-traded funds (ETFs) and mutual funds or open a gold individual retirement account (IRA). Read on for what to know about each option.
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What to know about buying physical gold
Physical gold generally comes in coins and bars. Coins are often more liquid, but gold bars can be more cost-effective, depending on how much gold you plan to buy. Some people store gold in their homes, while others put their gold in a bank safety deposit box or pay a third-party storage company.
Although you will have insurance and possibly storage costs, you can likely avoid ongoing management fees if you own physical gold. Some gold IRA providers have high fees, and gold funds often come with fees. However, physical gold is also the most difficult type of gold to liquidate.
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What to know about gold IRAs
Gold IRAs are self-directed individual retirement accounts that provide tax advantages as you accumulate gold. These accounts are similar to traditional retirement accounts from a tax perspective, but gold IRAs usually come with higher fees. That’s because the custodian buys and stores gold on your behalf and has to follow strict rules outlined by the IRS.
You can’t store gold held in a gold IRA in your home or at a bank’s safety deposit bank; it has to be through a custodian.
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What to know about gold ETFs and mutual funds
Gold ETFs and mutual funds are the most liquid way to invest in gold. Investors can buy and sell shares as they would with shares of stock funds.
These funds also let you skip storage costs and have low minimum requirements. You can get started with as little as $1, which isn’t possible for most gold investments. However, you do not have access to physical gold and have to contend with management fees. Still, you can find funds with low fees. The iShares Gold Trust ETF, for instance, has a 0.25% expense ratio, which is reasonable in the ETF industry.
It’s also important to look at a gold ETF’s holdings. Some ETFs, like the iShares Gold Trust ETF, give you direct exposure to the price movement of gold. Other ETFs, like VanEck Gold Miners ETF, give you exposure to gold miners. These companies perform typically well when gold prices increase, but the fact that these companies have their own financials, gold mines and long-term opportunities means gold mining ETF performances can vary from the price movements of gold.
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The best way to invest in gold
Each investor is different, and the best way to buy gold will depend on your preferences.
Investors who want tangible metal and the ability to hold their own gold should consider physical gold like coins and bars. Investors who want to enjoy tax benefits should look into gold IRAs while comparing fees. Buying gold ETFs is likely the simplest and most liquid path to getting gold exospore.