How to Buy Gold on Robinhood and What You Should Know First
You can buy gold on Robinhood, but only through a gold ETF, not physical gold bars or coins
Robinhood does not let you purchase physical gold directly. Instead, you can buy shares of a gold exchange-traded fund (ETF), which tracks the price of gold without requiring you to store or insure actual metal. The most common gold ETF available on Robinhood is the SPDR Gold Shares (ticker: GLD), which holds physical gold in a vault and lets you own a fractional stake in it.
When you buy GLD or a similar gold ETF on Robinhood, you own shares that move with the gold price. You can sell those shares anytime the market is open, just like any stock. The trade settles in your account within two business days, and you pay Robinhood's standard commission (currently zero for stocks and ETFs).
If you want to own physical gold coins or bars instead, you would need to use a different broker or a precious metals dealer. That route involves storage costs, insurance, and shipping, which can add 2 to 5 percent to your total cost per year.
Key Takeaways
- Robinhood offers gold through ETFs like GLD, not through physical gold you can hold or store yourself.
- Gold ETFs charge an annual expense ratio (typically 0.4 percent for GLD), which is deducted from your shares automatically.
- You can buy fractional shares of gold ETFs on Robinhood with as little as one dollar, making it accessible even with a small account.
- Gold ETFs are liquid — you can sell your shares during market hours and have cash in your account within two business days.
- Physical gold requires a separate dealer and adds storage and insurance costs that ETFs avoid.
How gold ETFs work on Robinhood
When you search for GLD (or other gold ETFs like IAU or GLDM) on Robinhood, you are buying shares of a fund that holds actual gold bullion in a secure vault. The fund's value moves with the spot price of gold — the price per ounce in the global market. Each share represents a tiny fraction of the gold the fund owns.
Robinhood charges no commission to buy or sell these shares. However, the fund itself charges an annual expense ratio, which is a percentage of your investment taken out each year to cover storage, insurance, and management. For GLD, this is currently 0.4 percent per year. For IAU (iShares Gold Trust), it is 0.25 percent. For GLDM (SPDR Gold MiniShares), it is 0.18 percent. These fees are deducted automatically from the fund's value, so you do not pay them separately.
You can buy fractional shares on Robinhood, meaning you can invest $10 or $100 and own a proportional piece of the fund. This makes gold accessible even if you do not have hundreds of dollars to invest at once.
The difference between gold ETFs and physical gold
A gold ETF is a paper investment — you own shares in a fund, not metal you can touch. The fund holds the actual gold, and you benefit from price movements without the burden of storage. Physical gold, by contrast, requires you to buy coins or bars from a dealer, store them in a safe or vault, and insure them against theft or loss.
Physical gold costs more to own. A typical precious metals dealer charges a markup of 5 to 10 percent above the spot price when you buy, and you pay storage fees (usually 0.5 to 1 percent per year) plus insurance. When you sell, you pay another markup. Over a five-year period, these costs can easily exceed what you would pay in ETF fees.
Gold ETFs also offer better liquidity. You can sell your shares instantly during market hours on Robinhood. Selling physical gold requires finding a buyer, which can take days or weeks, and you may not get the best price if you are in a hurry.
The main advantage of physical gold is psychological: you own something tangible. Some investors prefer that certainty, especially during market stress. But for most people saving for retirement or diversification, an ETF is simpler and cheaper.
Tax treatment of gold investments on Robinhood
Gold ETFs are taxed as collectibles under federal tax law, not as regular stocks. This means long-term capital gains on gold ETFs are taxed at a flat 28 percent rate, rather than the 0, 15, or 20 percent rates that apply to most stocks and funds. This is a significant disadvantage if you hold gold for more than a year.
Short-term gains (held less than one year) are taxed as ordinary income at your marginal tax rate, which could be higher or lower than 28 percent depending on your income. If you trade gold ETFs frequently, you will owe taxes on each sale, and Robinhood will send you a 1099 form listing all your transactions.
Physical gold is also taxed as a collectible at 28 percent for long-term gains, so the tax treatment is the same. However, some investors use gold as a hedge against inflation or economic crisis rather than as a profit-seeking investment, in which case the tax rate matters less than the insurance it provides.
Gold ETF options available on Robinhood
| ETF Name | Ticker | Annual Expense Ratio | What It Holds |
|---|---|---|---|
| SPDR Gold Shares | GLD | 0.40% | Physical gold bars in a vault |
| iShares Gold Trust | IAU | 0.25% | Physical gold bars in a vault |
| SPDR Gold MiniShares | GLDM | 0.18% | Physical gold bars in a vault |
| Invesco QQQ Trust | QQQ | 0.20% | Tech stocks (not gold, but often held alongside) |
GLD is the largest and most widely held gold ETF, so it has the highest trading volume and the tightest bid-ask spread (the difference between buy and sell prices). This makes it easiest to buy and sell quickly. IAU has a lower expense ratio, which saves you money over time if you hold for years. GLDM is the cheapest option but has lower trading volume, which can mean slightly wider spreads.
All three hold actual physical gold, so the choice comes down to cost and liquidity. For most Robinhood users, GLD or IAU are the practical choices. GLDM is worth considering if you are investing a large amount and want to minimize fees.
How to buy gold on Robinhood step by step
Open the Robinhood app or website and tap the search icon. Type the ticker symbol of the gold ETF you want (GLD, IAU, or GLDM). Tap the result to open the fund's page.
On the fund page, you will see the current price, a chart of price history, and a "Buy" button. Tap "Buy" and enter the dollar amount you want to invest or the number of shares. Robinhood will show you the total cost and any fractional shares you will receive. Confirm the order, and it will execute immediately if the market is open (9:30 a.m. to 4 p.m. Eastern time on weekdays).
If you place an order after market close or on a weekend, it will execute at the next market open. Your shares will appear in your Robinhood account within seconds, and you can sell them anytime during market hours. You do not need to do anything else — the ETF automatically holds the gold and deducts its annual fee from the fund's value.
Reasons to buy or avoid gold on Robinhood
Gold is often used as a hedge against inflation and stock market downturns. When stocks fall or the dollar weakens, gold often rises, which can balance losses elsewhere in your portfolio. If you believe inflation will accelerate or you want insurance against economic crisis, a small gold position (5 to 10 percent of your portfolio) can make sense.
Gold produces no income — it pays no dividends or interest. You make money only if the price rises, which means you are betting on future demand rather than on the underlying business. Over the past 20 years, gold has returned about 7 percent per year on average, which is lower than stocks but higher than bonds. If you need income or growth, stocks or bonds may be better choices.
Gold is also volatile. The price can swing 10 to 20 percent in a few months based on interest rates, currency movements, and investor sentiment. If you cannot tolerate that swings or you might need the money soon, gold is not appropriate. But if you are saving for retirement and want a small diversifying position, Robinhood makes it simple and cheap to own gold through an ETF.
Frequently Asked Questions
Can I hold gold in a Robinhood IRA?
Robinhood does not offer IRAs yet, so you cannot hold gold ETFs in a tax-advantaged retirement account through Robinhood. You would need to open an IRA at a different broker like Fidelity or Schwab. However, you can hold gold ETFs in a regular taxable Robinhood account, and you can also hold them in a Roth IRA or traditional IRA at other brokers.
What is the difference between GLD and physical gold bars?
GLD is a fund that holds physical gold in a vault and lets you own shares of it. You never touch the gold, and you pay an annual fee. Physical gold bars require you to buy them from a dealer, store them yourself or in a vault, and insure them. Physical gold costs more upfront and more per year, but some investors prefer owning the actual metal.
Do I pay taxes when I buy gold on Robinhood?
No, you do not pay taxes when you buy. You pay taxes only when you sell and realize a gain. If you sell for more than you paid, the gain is taxed at 28 percent (long-term) or your ordinary income rate (short-term). Robinhood will send you a 1099 form at the end of the year listing all your sales.
Can I set up automatic purchases of gold on Robinhood?
Robinhood does not offer automatic recurring purchases (sometimes called "dollar-cost averaging") for individual stocks or ETFs. You have to place each buy order manually. However, you can set a calendar reminder to buy gold on a regular schedule, or you can place a large order once and hold it long-term.
What happens if the gold ETF runs out of gold?
Gold ETFs do not run out of gold. The fund can hold as much gold as investors want to buy, and it can sell gold from its vault to meet redemptions. The fund's value is backed by actual physical gold stored in secure vaults, so there is no risk that the fund will fail or that your shares will become worthless.