Top 4 Gold Investment Options Recommended by Experts for August

Investing in gold isn’t a new strategy. These days, however, it’s becoming a more popular choice thanks to the many benefits it offers — from working as a safe-haven asset to helping hedge against inflation.

These perks — coupled with today’s economic factors, like cooling but persistent inflation — might explain why the price of gold has broken numerous price records since the start of 2024. And, gold is still on an upward price trajectory today, making it an even more alluring alternative asset for many investors.

And given the recent rise in gold interest, even more people are looking for ways to buy in. If you’re one of them, there are a few gold options to consider.

Find out more about the gold investing options available to you here.

These are the 4 best gold investing options this August, experts say

If you want to invest in gold this August, here are a few choices experts say you may want to take a look at:

Physical gold bullion

You can’t see your stock market investments in the palm of your hand — or many other types of investments, for that matter. But when you buy physical gold, you get to see and hold your purchase.

“There is only one real way to invest in gold, and that is to buy gold,” says Ryan P. Derda, a vice president at American Independence Gold. “Everything else is a derivative and has counterparty risk.”

Plus, it’s easy for anyone to buy physical gold if they want to add it to their portfolio. It’s not just limited to gold investors, Ben Nadelstein, head of content at Monetary Medals, says.

“Buying physical gold products like coins or bars can be done at a local coin shop, through an online bullion dealer or even retailers like Costco and Walmart,” Nadelstein says. “With how easy and convenient it is to buy gold, you can pick it up fairly easily without weeding through brokerage sites or making online transactions.”

Get started and add gold to your portfolio today.

Gold ETFs

Gold exchange-traded funds (ETFs) can also be a smart option to consider, as they’re a way for many people to get into investing without a lot of risk. That, in turn, can make them a smart bet for a wide range of investors.

“Buying a gold ETF can be a low-cost option to get exposure to gold without needing to research specific mining operations or learning about more complex gold options contracts or futures trading,” Nadelstein says. “Investors can quickly compare different ETF options and are able to easily buy and sell shares of gold ETFs just like they do with other stocks or ETFs they may already own.”

There are typically some fees tied to the cost of investing in gold ETFs, but they are generally less expensive than other investment options with higher expense ratios.

The potential downside, though, is that gold ETFs are a security product; you don’t own the gold.

“You buy a share of a trust that owns the gold,” Derda says. “With an ETF, you don’t own the gold directly. Each ounce of gold is fractionally allocated, and you are not able to take delivery.”

In turn, gold ETFs might be a great way for certain people to start investing in gold. If you want something physical and tangible, though, you may want to stick to physical gold options.

Gold IRAs

For long-term investors, like those saving for retirement, you can leverage an individual retirement account (IRA) to invest in gold. And in some cases, Derda says, it’s better to use what you already have for a gold IRA than search for something new.

“If you have an existing IRA, 401K or annuity inside of your retirement account, I would use those existing funds to purchase gold in a gold IRA,” says Derda. “It’s possible to open a gold IRA and start from scratch. However, I would personally not go about it this way.”

Gold options, futures and bonds

Gold options, futures, and bonds may also be worth considering this August, experts say. While other types of gold investing assets offer higher returns, those advanced options may also pose a higher risk for newer investors.

“Gold bonds have been gaining popularity,” Nadelstein says. “Gold bonds can offer double-digit yields paid in gold [but] have credit risk which other gold investing options like gold leases do not.”

“There are other gold derivatives that would certainly be considered ‘more advanced’ and absolutely have more risk, [like] gold options contracts, gold futures contracts, and gold options on futures,” Derda says. “These contracts require leverage and carry increased counterparty risk.”

The bottom line

Ultimately, the best way to invest in gold is by buying gold, according to Derda.

“Gold is money, gold has no counterparty risk, and gold is easy to purchase [and] invest in,” Derda says. “Unless you are an experienced trader, I would stay away from using any leveraged derivatives products.”

As you narrow down the investing options, though, just be sure to watch out for fees and extra costs. The less you spend on those extra charges, the more money you keep in your pocket.

“Investors should always be mindful of annual or recurring fees that eat away at the value of their investment,” Nadelstein says. “Investors who want cost-effective exposure to the price of gold as well as the option for a gold income stream are more likely to consider gold leasing or gold bond investing.”