Gold is a popular way to diversify your portfolio and hedge against inflation. But at several thousand dollars per ounce, the metal might seem like an out-of-reach luxury for many investors.
Thankfully, there are several, more accessible ways for you to own gold, like gold ETFs, mutual funds, and fractional bars and coins. In this beginner-friendly guide, we’ll help you start investing in gold – even if your budget is under $100.
Best ways to invest in gold on a small budget
Although gold prices crossed $5,000 per ounce in early 2026, according to the World Gold Council, you don’t need to spend that much to start investing in the precious metal. You may buy small amounts of physical gold or invest incrementally through gold ETFs or other options.
Compare some of the most popular ways that investors with a small budget can own gold:
| Gold investment option | What it is | Best for | Do you own physical gold? | Typical minimum investment amount | Where to buy |
| Gold ETF | A fund tracking the price of gold that you can trade like stocks | Investors seeking the lowest-cost way to gain gold exposure | No | $1+ for fractional shares, ~$30–$100 for full shares | Fidelity, Vanguard and other brokerages |
| Gold mutual funds | A professionally managed fund invested in gold-related assets | Investors who want diversity and professional management | No | ~$100 to $3,000+ (varies on the fund and brokerage) | Fidelity, Vanguard and other brokerages |
| Digital gold | Fractional ownership of physical gold stored in a third-party vault | Investors who want to own physical gold without buying coins or bars outright | Yes | ~$1–$100 | Vaulted, OneGold |
| Gold coins and bars | Physical gold coins and bars purchased from dealers or mints | Investors who want direct ownership of physical gold | Yes | ~$100-$200+ for fractional-ounce coins and bars | APMEX, JM Bullion, local dealers |
How much money do you need to invest in gold?
You don’t need thousands of dollars to start investing in gold. The simplest and most cost-effective way to gain exposure to gold is through Gold ETFs, which trade like stocks and follow the price of gold over time. You can often purchase fractional shares of gold ETFs for just a few dollars, making it a common choice for beginner investors.
If you want to invest in physical gold, you can often get started with small bars or coins. The most widely available small denomination of physical gold is one gram, which costs about $100 to $200.
If you’re interested in investing in physical precious metals but gold still feels too expensive, you could also consider investing in silver.
Different ways to buy gold as a beginner
There are many ways to invest in gold, either by purchasing physical gold or gaining virtual exposure through stocks and funds.
Each of these options carries different cost structures and risks. Because funds and stocks can be quickly converted into cash, they’re typically more cost-effective for beginners. The trading costs are also typically lower, and may be limited to a brokerage fee for a specific transaction or annual expense ratios charged by a mutual fund.
Gold coins and gold bars
The simplest way to buy physical gold coins and bars on a budget is by making small, fractional purchases like 1-gram or 1/10-ounce gold bars or coins, like bullion, valued for its precious metal content, or collectible coins, which are historic.
You can purchase gold coins and bars directly through online retailers like APMEX and JM Bullion.
- Typical minimum investment: ~$100-$200+ for fractional-ounce coins and bars
- Fees and premiums: High; smaller bars and coins tend to have a large markup relative to the gold value
- Best for: Investors who want direct ownership of physical gold
Gold mutual funds and ETFs
Many gold mutual funds and ETFs track spot prices or invest in mining stocks, and are a good way to invest in the gold industry as a whole.
You can purchase gold mutual funds and ETFs through a brokerage account with institutions like Fidelity or Vanguard.
- Typical minimum investment: As little as $1 with fractional ETF shares; mutual funds may require $100 to $3,000 or more
- Fees and premiums: Low; No storage fees and minimal premiums over the gold spot price. Most have an annual fee, charged as a small percentage of your portfolio
- Best for: Beginners seeking an accessible, low-cost way to invest in gold
Gold stocks
Investing in individual publicly traded gold producers, miners or royalty firms is riskier compared to ETFs but may offer higher rates of return.
Investing in gold stocks is appealing to beginners because it’s simple to get started. If you have a brokerage account, it may be as simple as searching for a stock or ETF and making a purchase.
Like gold mutual funds and ETFs, you can purchase gold stocks through a brokerage account.
- Typical minimum investment: As little as $1 through fractional shares
- Fees and premiums: Low; typically limited to brokerage fees, if any
- Best for: Investors seeking higher growth potential and willing to take on more risk
Digital gold
Digital gold, or gold savings accounts, let you purchase small amounts of gold over time, and your account value is linked to the price of gold. You can purchase digital gold through online platforms like Vaulted and OneGold.
- Typical minimum investment: Often $25 to $100 per deposit
- Fees and premiums: Moderate; may include storage, administrative or transaction fees, depending on the provider
- Best for: Investors who want to gradually build a gold position
Gold mining funds
Rather than offering direct gold ownership, a gold mining fund invests a percentage of its total assets in the equity securities of precious metals mining companies. Like an ETF or mutual fund, it spreads your risk across a range of stocks, bonds or commodities that may go beyond gold, and you can purchase it through your brokerage account.
- Typical minimum investment: Around $1 to $100, depending on the fund
- Fees and premiums: Moderate; Annual fund expenses can be higher than general index funds, but lower than many physical gold products
- Best for: Investors seeking diversification across multiple gold-related companies
Gold IRAs
Gold IRAs are self-directed retirement accounts where investors can hold physical gold and other precious metals through a custodian. The best way to roll retirement funds into a gold IRA is by working with a gold IRA provider like Goldco or American Hartford Gold.
- Typical minimum investment: Often $10,000 to $25,000 or more, depending on the provider.
- Fees and premiums: High; Setup fees, custodian fees, storage costs and dealer markups make this a more expensive option
- Best for: Retirement investors with larger account balances seeking diversification
Where to buy gold online and in-person
Where you buy gold will depend on the type of investment you’re making and how much assistance you need. These are among the most common places to go when buying gold:
- Online bullion dealers: Companies such as APMEX and JM Bullion sell physical gold bars and coins directly to investors.
- Brokerage accounts: You can often buy products like gold ETFs, mutual funds and gold mining stocks through brokerage platforms like Fidelity or Vanguard.
- Local coin shops and bullion dealers: If you prefer an in-person experience, you can purchase physical at pawn shops, coin shops and even some major retailers like Costco.
- Gold IRA providers: If you want to hold gold and precious metals in a retirement account, gold IRA providers such as Goldco and American Hartford Gold can help you open and facilitate your account, as well as make direct gold purchases.
Common mistakes when investing in gold
When just starting, several pitfalls can cause investors to overspend on gold. These may include:
- Not understanding markups, storage or fees: Buying gold isn’t as simple as entering a transaction on a brokerage website. Peter Reagan, Financial Market Strategist of Precious Metals IRA company Birch Gold Group, says, “New investors tend to overspend on gold due to knowledge gaps regarding premiums above the spot price of gold and the costs involved in the investment.” While the spot price is the per-ounce price of gold, the total cost of buying includes dealer markups, storage costs and transaction fees.
- Overpaying for “premium” products: Beginners may purchase collectible coins, which are typically rarer, historical coins that may be more expensive than bullion coins but cannot be held in a Gold IRA. When a product is effectively marketed, it’s easy to misunderstand its true value. A collectible coin may hold some sentimental value, but the actual gold content may not be worth what you paid.
- Emotional or fear-based buying: Reagan says beginner investors “tend to over-buy at unfavorable prices due to their emotional attachment to gold as an investment choice.”
How to avoid common gold scams
Like any investment, investing in gold has risks. You should take a few precautions to reduce your risk of overspending and avoid scams:
- Compare pricing across sellers: Dealers add markups to gold prices. Always compare pricing and fees to find the best price for you.
- Ask for full fee disclosures: Before you buy, ask for an itemized receipt to understand exactly what you’re paying for.
- Avoid urgency or guaranteed claims: Reputable dealers want to earn your business through service and pricing. Beware of marketing ploys that guarantee value or insist you buy fast.
- Verify credentials independently: If you’re unsure of a dealer’s legitimacy, check their credentials on the American Numismatic Association (ANA) dealer directory and search complaints with the Better Business Bureau (BBB).
Bottom line: Should you invest in gold?
Despite the high per-ounce price, gold investing doesn’t require a large initial investment. You can acquire both physical gold and invest in lower-cost gold securities without breaking the bank.
Before you start, make sure you understand the costs and have a diversification strategy to avoid overcommitting to a single asset. Over time, you can continue to buy more and scale your gold holdings gradually.
About the editor
Roxanne Downer is an editor and writer with nearly 20 years of experience covering personal finance, consumer services and investing. She specializes in translating complex topics and cutting through industry jargon and sales tactics to deliver clear, trustworthy guidance readers can actually use—whether they’re comparing providers, managing debt or exploring new investment strategies.
Frequently asked questions
What is the cheapest way to start investing in gold?
Generally, the lowest-cost way to invest in gold is through gold ETFs or gold mining stocks. You can often buy fractional shares for less than $50.
Is it better to buy physical gold or gold ETFs on a budget?
If you’re on a tight budget, it’s much more cost-effective to buy gold ETFs than physical gold. Physical gold requires storage costs and additional transaction fees that make purchases more expensive.
Can you invest in gold with $100 or less?
Yes. Gold ETFs and gold stocks are among the ways that you can gain exposure to gold in your portfolio for under $100. Fractional gold bars and coins are a way to purchase physical gold for under $100.
What if I invested $10,000 in gold 20 years ago?
In September 2006, the price of one ounce of gold was about $624, meaning that $10,000 would have bought you about 16 ounces of gold. In September 2026, that same amount of gold would be worth about $71,000.
What is the cheapest way to purchase gold?
The cheapest way to invest in gold is typically through a gold ETF. If you want to purchase physical gold at the lowest cost, fractional bars or coins sold through online retailers like APMEX or JM Bullion are typically the most cost-effective.