Yes, you can buy gold on Robinhood through fractional shares of gold ETFs

Robinhood does not sell physical gold bars or coins. Instead, it lets you buy fractional shares of gold exchange-traded funds (ETFs), which are funds that track the price of gold. The most common one on Robinhood is the SPDR Gold Shares ETF, ticker symbol GLD. When you buy a share of GLD, you own a piece of a fund that holds actual gold bullion in a vault.

This matters because it means you are not storing gold yourself — the fund holds it. You also cannot withdraw physical gold from your Robinhood account. What you own is a claim on the fund's holdings, and you can sell it back to Robinhood whenever the market is open, just like any other stock.

Robinhood also offers other precious metals ETFs, including ones that track silver and platinum. The process for buying any of them is the same as buying a regular stock.

Key Takeaways

  • Robinhood sells fractional shares of gold ETFs like GLD, not physical gold bars or coins.
  • When you buy a gold ETF share, you own a piece of a fund that holds actual gold in a vault, but you cannot withdraw the physical metal.
  • Gold ETFs trade during regular market hours, and you can sell your shares back to Robinhood anytime the market is open.
  • You pay no commission to buy or sell gold ETFs on Robinhood, but the fund itself charges a small annual fee.

How to search for and buy a gold ETF on Robinhood

Open the Robinhood app and tap the search icon at the bottom. Type "GLD" or "gold" into the search box. The SPDR Gold Shares ETF will appear in the results. Tap it to open the fund's page.

On the fund page, you will see the current price, a chart, and a button that says "Buy". Tap "Buy", then enter the dollar amount or number of shares you want. Robinhood will show you how many fractional shares that amount buys. Review the order and tap "Confirm" to complete the purchase.

The order goes through when ready during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). If you place an order after market close, it will fill when the market opens the next trading day.

What fees you will pay

Robinhood charges no commission to buy or sell gold ETFs. However, the ETF itself charges an annual expense ratio — a small percentage of your investment that goes to the fund's operating costs. For GLD, this fee is currently around 0.40% per year, meaning if you own $1,000 worth of GLD, you pay about $4 per year.

This fee is deducted automatically from the fund's value, so you do not pay it separately. Different gold ETFs charge different fees, so if you are comparing options, check the expense ratio on each fund's page in the Robinhood app.

Why people buy gold through ETFs instead of physical gold

Buying gold through an ETF on Robinhood is simpler than buying physical gold. You do not have to find a dealer, arrange storage, or insure the metal yourself. You can buy as little as a fraction of a share — you do not need to buy a whole ounce or bar. And you can sell when ready during market hours if you need the money.

Physical gold, by contrast, requires you to find a reputable seller, pay for find storage or insurance, and deal with the hassle of selling it later. Some people prefer physical gold because they can hold it, but for most people investing through a brokerage account, an ETF is more practical.

How gold ETF prices move

The price of a gold ETF share tracks the spot price of gold — the current market price for one ounce of gold. When the price of gold goes up, the ETF share price goes up. When it goes down, the share price goes down. The ETF's price lags the spot price slightly because of the fund's operating costs, but the movement is nearly identical.

Gold prices change throughout each trading day. You can watch the price in real time in the Robinhood app. If you want to sell, you can do so anytime the market is open and lock in whatever the current price is at that moment.

Tax treatment of gold ETF gains

When you sell a gold ETF share for more than you paid for it, you owe capital gains tax on the profit. The tax rate depends on how long you held the shares. If you held them for less than one year, the gain is taxed as short-term capital gains, which is taxed at your ordinary income tax rate. If you held them for more than one year, it is taxed as long-term capital gains, which usually has a lower rate.

Robinhood will send you a tax form (Form 8949) at the end of the year showing your sales and gains. You will report this on your tax return. Keep records of what you paid for each share and when you sold it, because you will need those numbers for your taxes.

Other ways to own gold through Robinhood

In addition to gold ETFs, Robinhood lets you buy shares of gold mining companies — companies that extract and sell gold. These stocks move differently than the gold price itself because they depend on the company's operations, management, and profitability. Some people use mining stocks as a way to bet on gold prices, but they carry more risk than owning the metal directly through an ETF.

You can search for mining companies the same way you search for ETFs — just type the company name or ticker into the search box. Popular gold miners include Newmont Corporation (NEM) and Barrick Gold (GOLD), though there are many others.

Frequently Asked Questions

Can I withdraw physical gold from my Robinhood account?

No. When you buy a gold ETF on Robinhood, you own shares of a fund, not physical gold. The fund holds the gold in a vault, and you cannot withdraw it. If you want physical gold, you would need to sell your shares and use the cash to buy gold bars or coins from a dealer.

What is the minimum amount I can invest in gold on Robinhood?

There is no set minimum. Because Robinhood offers fractional shares, you can buy as little as $1 worth of a gold ETF if you want. Most people invest larger amounts, but the choice is yours.

Does Robinhood offer gold futures or options on gold?

Robinhood does not offer gold futures. It does offer options on some gold ETFs if you have options trading turned on in your account, but options are more complex and carry higher risk than straightforward buying and holding shares.

How do I know if a gold ETF is the right choice for me?

That depends on your goals and risk tolerance. Gold is often used as a hedge against inflation or stock market downturns, but it does not pay dividends and its price can be volatile. Consider whether gold fits your overall investment plan before buying. If you are unsure, you may want to speak with a financial advisor.

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

Robinhood does not have an automatic investment feature for individual stocks or ETFs. You have to place each buy order manually through the app. Some other brokerages offer automatic investing, but Robinhood does not.