With the rise of digital brokerages like Robinhood, investing in gold has become easier than ever. Robinhood allows you to invest in gold in just a few taps on your phone. Here are 5 easy ways to buy and invest in gold using the Robinhood app.
Buy shares of a gold ETF on Robinhood
One of the simplest ways to gain exposure to the price of gold on Robinhood is to buy shares of a gold ETF like IAU or GLD. These ETFs hold physical gold bullion and track the gold spot price. When you buy shares of IAU or GLD on Robinhood, you essentially own fractional shares of the underlying physical gold.
Invest in gold mining stocks on Robinhood
In addition to gold ETFs, you can invest in stocks of gold mining companies like Barrick Gold and Newmont Mining on Robinhood. When gold prices rise, these miners generally see increased revenues and profits. However, gold mining stocks carry more risk than physical gold.
Buy gold futures contracts on Robinhood
For traders who want direct exposure to gold prices, Robinhood offers gold futures contracts. Futures allow advanced traders to speculate on gold prices. However, futures carry significant risk and require close monitoring.
Invest in a gold mutual fund on Robinhood
Robinhood allows you to invest in mutual funds that focus on gold and precious metals. Some examples are USAA Precious Metals Fund and Franklin Gold and Precious Metals Fund. These funds invest in a basket of gold mining and precious metals stocks.
Use Robinhood Gold margin investing
Robinhood Gold allows users to trade on margin, meaning you can borrow money from Robinhood to increase your buying power. This allows you to buy more shares of gold ETFs than you could normally afford. However, margin trading amplifies both gains and losses.
In summary, Robinhood provides several easy options for investing in gold, including gold ETFs, mining stocks, futures, mutual funds, and margin trading. Each method carries different risks and rewards for gaining exposure to gold prices.