Gold is considered one of the best investments, and people buy it for its historically proven real-world use cases. Gold represents a safe haven asset, preserving wealth and offering protection against inflation and economic uncertainty, among others.
Even if gold doesn't provide high yield like stocks or exponential returns compared to other assets, people buy gold for various reasons.
They buy it to diversify their portfolio, for its intrinsic value and ability to maintain purchasing power, protecting wealth from currency devaluation, unlike cash.
Gold's real-world utility spreads across various areas beyond finance, including technology, medicine, and others, leading to a constant demand for the precious metal.
Our guide provides valuable information about the key reasons why people buy gold, gold's price over time, and what affects its trajectory. You'll also learn the difference between physical vs. paper gold, and how to buy gold.
This guide is based on publicly available market data, research from industry organizations like the World Gold Council, and information published by major financial institutions, including JPMorgan, BlackRock, and VanEck.
Why people invest in gold
Gold's use cases extend beyond luxury goods, reaching various industries due to its unique physical properties and intrinsic value:
Finance and investment
Gold is seen as a top investment that represents:
- A safe haven asset - Protects investors during times of crises, financial and political instability, and rising inflation, offering a stable store of value
- Portfolio diversification option - It's usually uncorrelated with stocks or bonds, which can help reduce portfolio volatility.
- A hedge against inflation - Historically maintains purchasing power, protecting against currency devaluation
- High liquidity - Gold has consistent global demand and can be easily bought or sold in most markets.
Technology and other industries
Gold is widely used in electronics and advanced computing hardware due to its physical properties:
- Electrical conductivity, durability, resistance to corrosion, and oxidation make gold indispensable for electronics found in hardware AI systems, aerospace, electric vehicles, and others.
- Gold is useful for processors, memory chips, sensors, circuit boards, control units, connectors, batteries, and more.
Gold is also used in medicine (dentistry, various diagnostic tools via nanoparticles), food, cosmetics, and architecture.
Gold price today and what affects the price of gold
To check out gold's price today, you can visit various websites that track the spot price of gold, including Trading Economics, which shows gold's current price in USD/t.oz and its trajectory over the years.
Gold prices are quoted globally on international markets and reflect real-time supply and demand, investor sentiment, and macroeconomic conditions. Because gold is traded worldwide, its price is primarily denominated in US dollars.
Trading Economics' chart also provides data on gold's historical price. In the past 10 years, gold's price surged from over $1,100 in December 2016 to $5,300 in January 2026, an increase of almost 500%.
Around December 2016, the price of gold was approximately $1,100–$1,150 per troy ounce. Over the following years, gold gradually appreciated, supported by low interest rates, economic uncertainty, and rising global debt.
A major price acceleration occurred in 2024, when gold broke above the $2,000 per troy ounce level and reached new all-time highs, driven by factors such as persistent inflation concerns, geopolitical tensions, and expectations of monetary policy easing.
By 2025–early 2026, gold continued to trade at historically elevated levels, well above its pre-2020 averages, confirming its role as a long-term store of value rather than a short-term speculative asset.
What affects the price of gold
Factor | Impact on gold price |
|---|---|
Inflation | Higher inflation can increase gold demand as a long-term store of value. |
Interest rates | Rising rates usually pressure gold prices, while lower rates tend to support them. |
US dollar strength | A stronger USD can reduce gold demand from foreign buyers; a weaker USD supports higher prices. |
Geopolitics | Political instability and global tensions often increase gold’s safe-haven demand. |
Supply and demand | Higher demand or limited mining supply can push gold prices higher. |
Central banks | Gold purchases by central banks can support prices, while large sales may apply downward pressure. |
Market sentiment | Market fear often boosts gold demand, while strong risk appetite can reduce it. |
Economic stability | Economic growth can lower demand for gold, while crises typically increase it. |
Tariffs | Tariffs can raise economic uncertainty and inflation concerns, supporting gold demand. |
Capital rotation | Shifts of capital into or out of gold influence its price. |
Scarcity levels | Gold supply grows slowly over time, making demand more influential than supply changes. |
How to buy gold for beginners
The main ways you can buy gold depend on whether you want to buy physical gold or financial (paper) gold.
How to buy physical gold
You can buy physical gold in the form of bars or coins from a dedicated offline or online entity.
When you want to buy gold from online platforms, you will have to create an account first. Both offline and online regulated entities can ask for KYC rules/ID verification before selling gold to customers.
How to buy gold bars
You can buy gold bars:
- Offline via regulated entities, banks, and authorized bullion dealers (example
US Gold Bureau)
- Online via regulated entities or specialized platforms that provide home delivery or secure vault storage (example
The Bullion Bank)
How to buy gold coins
You can buy gold coins:
- Offline via banks or regulated entities, authorized dealers
- Online via regulated platforms (example
United States Mint)
When you buy physical gold, always check for purity via official certifications and make sure to securely store your gold after purchase.
How to invest in gold without physical storage
To invest in gold without physical storage, you can invest through gold ETFs, gold mining stocks, gold futures, gold CFDs, and other gold-related financial products.
The key differences between gold ETFs, gold stocks, gold CFDs, and gold futures are related to ownership, purpose, risk/reward:
Product | Ownership | Purpose | Risk/Reward | Notes |
|---|---|---|---|---|
Gold ETF | Shares of a fund | Investment/hedge | Moderate | Tracks gold price; liquid; low fees |
Gold Mining Stocks / ETFs | Shares of companies | Investment/growth | Higher | Exposed to company performance + gold price |
Gold CFDs | Contract on price change | Speculation | High | No ownership; leveraged; short-term focus |
Gold Futures | Standardized contract | Hedging or speculation | High | Leveraged; can settle in cash or gold |
How to buy gold ETFs
You can buy gold ETFs through brokerage platforms or stock exchanges where these ETFs are listed.
Gold ETFs are financial products designed to track the price of gold, often through physical gold holdings.
Key gold ETFs that are physically backed by gold include:
ETF | Issuer | Focus | Pros | Cons |
|---|---|---|---|---|
SPDR Gold Shares (GLD) | State Street Global Advisors | Tracks the price of physical gold | High liquidity; easy to trade; tracks gold price closely; no storage worries | Counterparty risk; not direct ownership of physical gold; expense ratio fees |
iShares Gold Trust (IAU) | BlackRock (iShares) | Tracks the price of physical gold | Lower expense ratio than GLD; liquid; easy to trade; tracks gold price | Counterparty risk; not direct ownership; potential market disruptions; dependent on issuer |
For example, IAU can be purchased through major brokerage platforms such as Fidelity, after opening and funding an account.
How to buy gold stocks (gold mining ETFs)
You can buy gold stocks and gold mining ETFs through brokerage or trading platforms where these products are listed.
Key gold mining ETFs with exposure to companies that mine gold:
ETF | Issuer | Focus | Pros | Cons |
|---|---|---|---|---|
VanEck Gold Miners ETF (GDX) | VanEck | Invests in large, established gold mining companies | Diversified exposure to major miners; potential growth; easier than buying individual stocks | Stock volatility; affected by company performance; gold price dependency |
VanEck Junior Gold Miners ETF (GDXJ) | VanEck | Invests in smaller, often more volatile junior mining companies | Higher potential upside; exposure to emerging miners; diversification | High volatility; risk of underperformance or company failure; gold price dependency |
iShares MSCI Global Gold Miners ETF (RING) | BlackRock (iShares) | Diversified global gold mining exposure | Geographic and company diversification; easier access to multiple mining companies | Stock and sector volatility; currency risk; gold price dependency |
For example, GDX may be available on major trading platforms such as eToro, depending on your country and account type.
How to buy gold CFDs
Trading Gold through Contracts for Difference (CFDs) on PrimeXBT allows you to speculate on price moves without owning the physical metal. This means you can profit whether the price goes up or down.
Step 1: Get Your Account Ready
Since you are likely familiar with crypto wallets, this part is easy.
- Sign Up:
Register with your email on the PrimeXBT website or app.
- Fund Your Wallet
- Transfer to Trading Account: Move your funds from your main wallet to the Global Markets or CFD trading account.
Step 2: Find the Gold Market
Open the PXTrader platform or the mobile app:
- Look for the symbol XAU/USD or GOLD.
- Watch the live chart. As of January 2026, Gold has seen significant action, trading at high levels around $5,100.
Step 3: Place Your Trade
You have two choices based on your market view:
- Go Long (Buy): Click "Buy" if you think the price will rise.
- Go Short (Sell): Click "Sell" if you think the price will fall.
Gold CFDs offer you a contract betting on the price changes of gold or gold stocks. You can buy gold CFDs on platforms like PrimeXBT.
How to buy gold with crypto
You can also buy tokenized gold with crypto on crypto exchanges like Binance. The platform allows you to swap crypto for PAXG, and you can also buy XAUt via the Binance Web3 Wallet.
Tokenized gold is physical gold digitized and minted on the blockchain. Such tokens are backed by an equivalent amount of real gold held in custody by the issuing entity.
How to buy tokenized gold
Binance allows you to buy PAX Gold (PAXG), a digital asset issued by Paxos, regulated by the New York Department of Financial Services. Each token is backed by a specific London Good Delivery gold bar.
To buy PAXG on Binance, follow these steps:
- Log in to your Binance account or create a new account if you're not already registered.
- Go through the KYC verification process.
- You can buy PAXG with fiat money using your debit card, and you can also swap crypto for PAXG via Convert.
You can also buy Tether Gold (XAUt), a highly liquid token backed by physical gold in Swiss vaults. You can buy XAUt via Binance Wallet by following these steps:
Log in to your Binance account, or create one.
- Go through the KYC verification process.
- Set up your Binance Wallet.
- Buy a stablecoin like USDC as your base currency.
- Swap your USDC for XAUt.
Besides buying tokenized gold, Binance also allows you to trade gold futures.
How to trade gold futures
Gold Futures offer a standardized contract to buy or sell gold at a set price on a future date. You can trade gold futures on multiple platforms that list such products, including Binance.
To trade gold futures on Binance, you have to follow these steps:
- Log in to your Binance account or create a new account if you don't already have one.
- Go through the KYC verification process.
- Go to Binance Futures.
- Open a futures account (if available in your region) to start trading.
- Search symbol/go to TradFi tab to trade traditional futures contracts
- Choose XAUUSDT - Binance's gold perpetual contract
Apart from gold, Binance also allows futures trading for silver and Tesla shares in terms of TradFi products.
Physical gold vs paper gold
Key differences between physical gold and paper gold are the following:
Aspect | Physical Gold | Paper Gold |
|---|---|---|
Definition | Tangible, material gold such as coins, bars, or jewelry | Financial instruments that represent gold ownership or claims (ETFs, stocks, futures, certificates, unallocated accounts) |
Purpose | Wealth preservation and a hedge against inflation | Primarily used for speculation, trading, and short-term exposure |
Pros | Direct ownership; no counterparty risk | Highly liquid; easy to buy and sell; no storage concerns; convenient for trading |
Cons | Requires secure storage; lower liquidity; theft risk; difficult portability; requires authentication | Subject to counterparty risk; dependent on issuer performance; potential failure in crises; no direct ownership |
Gold bullion explained
Apart from jewelry, decorative items, and collectibles, you can buy physical gold in the form of gold bullion. Gold bullion is physical gold valued mostly for its purity, not for design, rarity, or craftsmanship.
Gold bullion includes:
- Gold bars (commonly available in weights from 1g to 1kg or more) with high purity, typically between 99.5% and 99.99%.
- Investment-grade gold coins (coins minted primarily for investment purposes, such as the American Gold Eagle and Canadian Maple Leaf).
Gold bullion is used for investment and wealth preservation, and its price closely follows the spot gold price, usually with an added premium.
What should I choose?
Your goal | Best gold option | Why |
|---|---|---|
Long-term wealth preservation | Physical gold (bars or coins) | Direct ownership, no counterparty risk |
Easy access and liquidity | Gold ETFs | Tracks gold price, easy to trade |
Growth potential | Gold mining stocks / ETFs | Higher upside, higher volatility |
Short-term trading | Gold CFDs or futures | Leverage and price speculation |
Where to buy gold safely
You can buy physical gold from:
- Regulated entities - Some banks or financial institutions sell gold bars (standard bullion sizes) or investment coins directly to customers.
- Specialized sellers/dealers - Dedicated gold dealers sell the precious metal online or offline, often offering insured shipping or allowing you to inspect gold before purchase.
- Vaulted gold accounts - Allow gold to be stored in secure vaults through a custodial service.
In case you want to buy physical gold, you should always check for purity (markings), dealer reputation, and storage options.
You can buy paper gold from:
- Stock exchanges (gold ETFs that track gold prices, other structured products like gold futures, gold mining stocks, or funds)
- Online brokers (local or international) that also sell gold ETFs or gold-related securities
- Other digital platforms that offer gold exposure, including some crypto platforms such as Binance, depending on local regulations.
What to avoid
Buying physical gold from regulated entities or reputable dealers generally reduces the risk of authenticity or purity issues, due to low risks regarding authenticity or purity. Buying physical gold online from unregulated entities is not recommended.
Paper gold should be purchased only from regulated providers that clearly disclose prices, fees, and associated costs.
What to consider when you decide to buy gold
Factor | What it means |
|---|---|
Spot price vs premium | Spot is the global gold price; the premium covers minting, handling, storage, and dealer profit. |
Purity | Choose 995+ purity, buy from regulated sellers, recognized mints, and check certificates. Be cautious of prices far below spot. |
Coins vs bars | Bars have lower premiums but are harder to resell; coins cost more but are more liquid. |
Dealer fees | Low premiums may hide extra fees (processing, card, minimum order). Always check the final price. |
Payment method | Bank transfers are cheapest; cards and PayPal cost more; cash may work with local dealers. |
Shipping & insurance | Confirm delivery costs and ensure the shipment is fully insured. |
Buy-back spread | Good dealers publish buy-back prices near spot; large buy/sell gaps are a warning sign. |
Storage | Allocated storage or physical possession gives real ownership; unallocated gold is cheaper but riskier. |
Taxes | VAT rules vary by country; some locations exempt investment-grade gold. |
Online vs local dealers | Online dealers often have lower premiums and transparency; local shops offer privacy but prices vary. |
Common mistakes when buying gold
The most common mistakes when you buy gold include the following:
- Buying from unauthorized, unregulated dealers or entities
- Not checking gold's purity via stamps, certifications
- Overpaying premiums
- Overlooking checkout prices or ignoring taxes
- Ignoring storage and insurance
- Prices far below spot usually indicate scams, fake gold, or misleading offers.
- Ignoring the buy-back spread
Is gold a good investment?
Gold is a great investment for storing value long-term, as it acts as a hedge against inflation and money devaluation. You should buy gold to preserve wealth, especially in times of economic and geopolitical uncertainty, market stress, or weak confidence in monetary policies.
Gold is not necessarily the best investment for the short-term, if you expect high returns, considering that gold's price doesn't rise exponentially.
You should invest in gold to have a diversified portfolio and to protect your wealth, according to the World Gold Council.
Large asset managers like BlackRock suggest investing in gold, especially amidst periods of volatility and a weakening US dollar, while
JPMorgan foresees a bright era for gold.
VanEck advises a 5%-10% gold allocation in your portfolio. Meanwhile, experts don't recommend going all in on gold, investing more than 25% if you're an average investor, or treating gold as a growth asset like stocks or crypto.
Gold's lack of high volatility highlights its key roles in stability and protection, without promising exponential returns.
When and if you decide to buy gold, you should always purchase it from reputable and regulated online/offline entities and make informed decisions based on your goals and risk tolerance.
FAQ about How to buy gold
How do beginners buy gold?
Beginners can buy gold from banks and other regulated and reputable entities/dealers that operate offline or online. Buying gold usually requires ID/KYC verification by sources that are trustworthy.
Is it better to buy gold bars or gold coins?
Both gold bars and gold coins are great long-term investments, but it depends on the amount you have available to invest.
How is the gold price determined?
Gold price is determined based on multiple factors, including inflation, supply and demand, US dollar strength, macroeconomic and geopolitical situation, and others.
Can you buy gold through ETFs or stocks?
Besides buying physical gold, you can also buy paper gold via gold ETFs, which track the price of physical gold, and gold stocks, which offer exposure to gold mining companies.
What is gold bullion?
Gold bullion is physical gold in the form of coins or bars with high purity, usually between 99.5% and 99.99%.
