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How to Buy Gold on Robinhood

By Cassandra Finch · Education and Health Savings Writer

You can buy gold on Robinhood through fractional shares of gold ETFs, not physical gold bars

Robinhood does not let you buy physical gold. Instead, you can purchase fractional shares of exchange-traded funds (ETFs) that track gold prices. The most common option is GLD (SPDR Gold Shares), which holds physical gold in vaults and lets you own a piece of it without taking delivery. You can also buy IAU (iShares Gold Trust), which works the same way.

Both ETFs trade like stocks on Robinhood — you can buy as little as one share or a fraction of a share, and the price moves with the spot price of gold. There are no special account types or waiting periods. You simply search for the ticker, enter the dollar amount or number of shares you want, and place the order during market hours.

The trade-off is that you own shares in a fund, not gold itself. The fund charges a small annual fee (typically 0.40% per year for GLD and 0.25% for IAU), which comes out of your returns. You also cannot take physical delivery of gold from either fund without jumping through extra steps that most retail investors never use.

Key Takeaways

  • Robinhood offers fractional shares of gold ETFs like GLD and IAU, which track the price of physical gold without requiring you to store it.
  • You can buy gold ETFs on Robinhood the same way you buy stocks — by searching the ticker and entering a dollar amount or share count.
  • Gold ETFs charge annual fees (typically 0.25% to 0.40%) that reduce your returns over time.
  • If you want to own physical gold bars or coins, Robinhood is not the right platform — you would need a precious metals dealer or bank.

How to place a gold ETF order on Robinhood

Open the Robinhood app or website and tap the search icon at the bottom. Type GLD or IAU into the search box. When the ETF appears, tap it to open the detail page, which shows the current price, daily change, and a chart.

Tap the "Buy" button. You will see two options: enter a dollar amount (for example, $500) or enter a number of shares. If you enter a dollar amount, Robinhood will calculate the fractional shares automatically. Confirm the order and it will execute during market hours (9:30 a.m. to 4:00 p.m. Eastern Time on weekdays when the stock market is open).

Your shares will settle in two business days, meaning the cash leaves your account immediately but the shares are fully yours after two days. You can sell at any time during market hours with no holding period or penalty.

GLD versus IAU: which gold ETF to choose

Both GLD and IAU hold physical gold and track the spot price closely. The main difference is cost: IAU charges 0.25% per year while GLD charges 0.40% per year. Over decades, that 0.15% difference compounds — on a $10,000 investment, you would pay $15 more per year with GLD than with IAU.

GLD is older and more heavily traded, which means tighter bid-ask spreads (the difference between the buy and sell price at any moment). For most Robinhood users, this difference is negligible. IAU is slightly cheaper to hold long-term. Either one is a straightforward way to own gold exposure without storage or insurance costs.

A third option, GLDM (SPDR Gold MiniShares), is similar to GLD but with a lower fee of 0.10% per year. It is less liquid than GLD, meaning the bid-ask spread may be slightly wider, but the lower fee makes it worth considering if you plan to hold for years.

Why Robinhood gold ETFs are not the same as owning physical gold

When you buy GLD or IAU on Robinhood, you own shares in a fund, not gold itself. The fund owns the gold and stores it in secure vaults. If the fund shuts down or faces financial trouble, your shares are protected by law — the gold belongs to shareholders, not the fund company. But you cannot walk into a Robinhood office and ask for a gold bar.

This matters if you want gold for a specific reason. If you are buying gold as insurance against economic collapse or currency failure, holding ETF shares on a brokerage account is not the same as holding physical gold in your possession. If you want gold for jewelry or collectible purposes, ETFs do not help. If you simply want gold as a long-term investment that moves differently than stocks, ETFs work perfectly.

ETFs also mean you are exposed to the fund's annual fees and the brokerage's solvency. Robinhood is a regulated broker and unlikely to disappear, but it is a real counterparty risk that does not exist if you own physical gold outright.

Tax treatment of gold ETF gains on Robinhood

Gold ETFs are taxed as collectibles under federal tax law, not as regular investments. This means long-term capital gains on gold ETFs are taxed at a maximum rate of 28%, not the 15% or 20% rate that applies to most stocks and stock funds.

If you hold GLD or IAU for more than one year and sell at a profit, you owe 28% federal tax on the gain (plus state tax if your state has a capital gains tax). If you sell within one year, the gain is taxed as ordinary income at your regular tax rate, which could be higher or lower depending on your income bracket.

This is a real cost that many investors overlook. A stock fund held long-term might cost you 15% in taxes, but a gold ETF costs you 28%. Over a 20-year holding period, this difference is substantial. Keep this in mind when deciding whether gold ETFs fit your overall investment plan.

Alternatives to buying gold on Robinhood

If you want physical gold, you can buy from a precious metals dealer like APMEX, JM Bullion, or Kitco. You pay a markup over the spot price (usually 3% to 8%) and you have to store it yourself or pay for vault storage. Shipping and insurance add to the cost.

Some banks and brokers offer allocated gold accounts, where you own specific bars stored in a bank vault. This costs more than ETFs but gives you the security of physical ownership without the hassle of storage. Fidelity and some other brokers offer this option, though not Robinhood.

If you want gold exposure without the collectibles tax rate, you can buy mining company stocks or mining ETFs like GDX (VanEck Gold Miners ETF). These are taxed as regular stocks at the lower long-term capital gains rate. The downside is that mining stocks move differently than gold itself — they are more volatile and tied to company performance, not just the price of gold.

Frequently Asked Questions

Can I set up automatic purchases of gold ETFs on Robinhood?

Robinhood does not offer automatic recurring investments or dividend reinvestment for individual stocks or ETFs. You have to place each order manually. Some other brokers like Fidelity or Vanguard offer automatic investment plans, which might be better if you want to buy gold regularly.

What happens to my gold ETF shares if Robinhood goes out of business?

Your shares are held in your name and protected by the Securities Investor Protection Corporation (SIPC), which insures brokerage accounts up to $500,000. The gold itself belongs to the ETF shareholders, not Robinhood. Even if Robinhood failed, your shares would transfer to another broker and the gold would remain safe in the vault.

Is there a minimum amount I have to invest in gold on Robinhood?

No. Robinhood lets you buy fractional shares, so you can invest $1, $10, or any amount you want. There is no minimum purchase or account balance required to own gold ETFs on Robinhood.

Do gold ETFs pay dividends?

GLD and IAU do not pay dividends. They are designed to track the price of gold, not generate income. If you want gold exposure plus dividend income, you would need to buy mining stocks or mining ETFs instead, though those move differently than gold itself.

Can I sell my gold ETF shares anytime?

Yes. You can sell GLD or IAU shares during market hours (9:30 a.m. to 4:00 p.m. Eastern Time on weekdays) with no holding period, no penalty, and no waiting. The order executes immediately at the current market price, and the cash settles in two business days.