Physical gold, gold funds, mining shares and gold IRAs carry different costs, tax rules and storage requirements.
Global gold investment increased 84% to a record 2,175 metric tons in 2025, according to the World Gold Council.
North American gold funds also posted a record year, attracting $51 billion in 2025, nearly 57% of global gold-fund inflows. But the pattern shifted in 2026. Asia and Europe led the buying through July, bringing global gold ETF net inflows to $11 billion. North American funds attracted $71 million in July, but investors had still withdrawn more than they added so far in 2026.
Read:Six portfolio “leaks” and how to fix them
If you want to add gold to your retirement portfolio, you have four common options. Here’s what to know about each.
Buy Gold Bars or Coins
One option is to buy gold bars or coins and own them directly.
You can buy from online dealers, local coin shops and some major retailers. You pay the current spot price plus a dealer markup called a premium. The Commodity Futures Trading Commission recommends getting the price, fees and commissions in writing before purchasing.
You can have the gold delivered or pay a storage company to hold it. If you take delivery, you are responsible for keeping it secure. Paid storage and optional insurance add to the cost. When you sell, the dealer may offer less than the spot price. That difference, along with the premium you paid, reduces your return.
The IRS treats profits from selling gold bullion held longer than one year as collectibles gains, taxed at up to 28%, depending on your taxable income. Profits on gold held for one year or less are taxed at the same rates as wages and other ordinary income. Keep in mind, gold you buy and hold this way sits outside any retirement account. If you want gold in a tax-advantaged account, you’d need the self-directed IRA route instead.
Invest in Gold-Backed Funds
You can buy shares of a fund that holds actual gold bars in a vault, through a normal brokerage account, just like buying any stock or ETF. Its share price generally follows the value of that gold after expenses. No special account is required; these funds trade in a standard brokerage account or IRA.
You can buy and sell shares during market hours, similar to a stock. You skip the dealer hunt you would otherwise do with physical gold. No arranging delivery, insurance or storage needed. However, you own shares rather than gold you can take home. When you want to cash out, you sell your shares through your brokerage account.
These funds charge annual fees that reduce your return. For example, the SPDR Gold MiniShares Trust, or GLDM, has an expense ratio of 0.10%v, while the iShares Gold Trust, or IAU, charges a sponsor fee of 0.25%. At those rates, a $10,000 investment would cost about $10 or $25 per year, respectively.
Because GLDM and IAU hold physical gold, profits from shares sold after more than one year in a taxable account are generally treated as collectibles gains, with a maximum 28% federal capital gains rate. Funds holding mining stocks or futures contracts follow different tax rules, so check the prospectus before buying.
Buy Gold Mining Stocks or Funds
Buying a mining stock means owning part of a company instead of a quantity of gold. Like gold-backed funds, mining stocks and funds trade in any standard brokerage account or IRA. No special setup needed. Gold mining stocks do not always follow the price of gold because production costs, management decisions and other business conditions also affect their value.
A mining fund spreads your investment across several companies. Take the VanEck Gold Miners ETF (GDX), for example. It holds shares in dozens of mining and precious-metals businesses and charges a 0.51% annual expense ratio.
Mining companies can pay dividends. Bars, coins and physically backed gold funds produce no income from the metal itself. Mining shares are taxed like other stocks. If you sell after holding them for more than one year in a taxable account, your profit generally falls under the IRS capital gains rates of 0%, 15% or 20%, depending on your taxable income. Dividends and capital gain distributions are taxable in the year they are paid, even if you reinvest them.
Hold Physical Gold in a Self-Directed IRA
To hold physical gold inside an IRA, you need what’s called a self-directed IRA, one where the custodian actually allows precious metals. You pick the metal you want and tell the custodian which dealer to buy it from.
Internal Revenue Code Section 408 requires IRA-owned gold to remain in the physical possession of a bank or approved nonbank trustee. Custodians commonly arrange storage through a precious-metals depository. Not every coin or bar qualifies, since the IRS has specific purity rules, though popular coins like American Gold Eagles are allowed.
A gold IRA carries account, transaction and storage fees. STRATA Trust Company, for example, lists a $150 annual IRA fee on top of a $40 precious-metals transaction fee and a $35 depository handling fee. Storage is another cost. Keeping your metal with other customers’ holdings costs $115 a year, while having it kept apart and identifiable as yours runs $175. Dealer markups and shipping cost extra.
Gold IRA Storage and Withdrawal Rules
A 2021 Tax Court case shows what happens if you keep IRA-owned gold at home. Donna McNulty had her IRA fund an LLC that bought American Eagle coins and shipped them to her house instead of an approved depository. The court ruled that the moment she received the coins, it counted as a taxable distribution.
Keep the gold with the custodian, and you avoid the home-storage problem McNulty ran into. Gold IRA withdrawals follow the usual IRA tax rules. Traditional IRA distributions are generally taxed as ordinary income no matter how old you are. Roth withdrawals are generally tax-free once you are 59½ and have had a Roth IRA for at least five years. A taxable distribution taken before age 59½ can also trigger a 10% additional tax unless an exception applies.
