Gold has smashed through historic records, briefly crossing $3,490 per ounce—a nearly 31% gain since the beginning of the year, according to Euro News. Economic uncertainty, rising geopolitical tensions, and investor fears over U.S. monetary policy have fueled the surge. Still many are asking: how can everyday investors with limited funds take part in the gold rush?
Gold ETFs (exchange-traded funds) might be the answer. And it’s cheap to start this way–you can get started with as little as $300.
According to billionaire investor Ray Dalio, gold should be a core part of a balanced investment portfolio. Dalio emphasized in 2024 that gold serves as a hedge against inflation, geopolitical instability, and market downturns. “Gold is not someone else’s liability,” he explained, making it a reliable store of value when trust in institutions or currencies falters.
He also noted that gold has a significant negative correlation with traditional assets like stocks and bonds. This means that when markets dip, gold tends to rise.
There are several ways to buy gold, including physical gold and financial gold investments. Physical gold includes bars, coins, and jewelry, and can be purchased from individuals, jewelers, dealers, or banks–and even Costco and Walmart. While the price of physical gold is linked to the spot price, jewelry is typically marked up. One advantage is that no investment account is required, but physical gold requires safe storage and safeguarding, according to Fidelity.
For investors without the budget or who don’t want to buy physical gold, ETFs may be an option as they offer a low-cos alternative. These funds track the price of gold and trade on stock exchanges like any other equity. Among the most popular gold ETFs are: SPDR Gold Shares (GLD), which is one of the largest and most liquid gold ETFs; iShares Gold Trust (IAU), which is a lower-cost alternative with a smaller share price; and GraniteShares Gold Trust (BAR), known for tight spreads and cost efficiency.
To invest in gold ETFs, open a brokerage account with platforms like Fidelity, Vanguard, Robinhood, or Charles Schwab. You can thn buy shares of a gold ETF just as you would a stock.
