How to buy Gold on Robinhood Step-by-Step Guide

You can buy gold and other precious metal commodities through ETFs on the Robinhood platform, but this is not the only way to invest in gold.

There are multiple ways to buy gold on the Robinhood app and in we will go over some of them in this article.

ROBINHOOD AFFILIATE LINK WITH GOLD ETF

Investing in Gold through Robinhood

Robinhood specialized in low-cost securities trading, which is why it really doesn’t offer any ability to invest in gold bullion.

It does, however, give its users the ability to trade securities that are directly or indirectly backed by o connected to the precious metal.

It’s important to keep in mind that these trades are completely commission-free in the Robinhood, however, investing in gold ETFs always generate a very small expense ratio.

Buy Gold ETF on Robinhood (SPDR $GLD Gold Trust)

You can buy a gold ETF if you search the ticker ‘$GLD’ on the app, this ETF is operated by Standard & Poor’s, that’s why you can find the financial instrument with the name “SPDR Gold Trust”.

Buying this is ETF is the same as buying and holding physical gold, but with quite a few advantages. Holding this ETF will generate a 0.4% expense ratio, but for the individual investor this is much cheaper than the spread trying to buy and sell gold.

You also don’t have to worry about gold storage costs because since it is not in physical form you don’t have to worry about storing the gold in either a vault, a private bank or at home in a homemade vault.

You are also not buying gold mining stocks with leverage, you’re just buying a stage in physical gold bullion, without any of the setbacks of owning the physical asset.

It’s in our opinion the best option unless you plan on holding the gold for more than 10 years.

How to buy Gold stocks in Robinhood

ROBINHOOD AFFILIATE LINK WITH PROMOTION

You could also buy stocks through the Robinhood app. Here are some examples of securities available at Robinhood that are backed up or attached to gold in one way or another.

Coeur Mining Inc.

This enterprise is headquartered in Chicago and specializes in precious metals mining. It focuses on gold and silver operations in the Americas.

Its stock trades on the New York Stock Exchange under the ticker symbol CDE. Robinhood’s profile page shows an average daily volume of 8.5 million shares and a P/E ratio of blank.

This probably means the company has negative earnings, not a good sign. Nevertheless, the 9 ratings on Robinhood’s site show either buy or hold ratings with no sell ratings.

Franco-Nevada Corp.

This company manages gold-focused royalties and streams portfolio. So what this basically means is that Franco Nevada does not operate individual gold mines, but it rather invests on many gold operations in exchange for a future portion of their income.

This is a company that not only finances gold mining operations in exchange for a stake in said operations but also manages precious metal assets, with its largest investment of course being gold.

Its stock trades on the Toronto and New York stock exchanges under the ticker symbol FNV. Robinhood’s profile page a P/E ratio of 36 a 0.60 beta and a total daily volume of 619.7k shares, which are some of the best metrics for a gold stock on the market.

In our opinion this would be one of the best gold stocks to buy on the market as it has continued to outperform even S&P500 for 5 continuous years with an average return of 18% annually.

You can find Franco Nevada Corp on the Robinhood app under the ticker symbol ‘FNV’, right now Franco Nevada stock is trading at around $141 dollars per share.

Barrick Gold Corp.

Barrick Gold Corp. is another great gold stock in the market, this company directly focuses on gold and copper mining operations with 16 operating sites in 13 different countries and it is one of the world’s largest gold companies both in term of production and reserves along with Franco Nevada.

Its stock trades on the New York stock exchange under the ticker symbol GOLD. Robinhood’s profile page a P/E ratio of 15 a 0.13 beta and a total daily volume of 17 million shares, these metrics are not as impressive as Franco Nevada, but it is a good option nonetheless for your gold portfolio.

You can find Barrick Gold Corp on the Robinhood app under the ticker symbol ‘GOLD’, right now Barrick Gold Corp stock is trading at around $16 dollars per share.

Alternatives to Robinhood for investing in gold

If you instead wish to open an account using another broker than Robinhood we have a full dedicated article on the best stockbrokers in 2023 where we go over all of the pros and cons these have to offer.

But since we know you like things nicely summarized, we have a small table with the basic info on the best Robinhood alternatives for 2023, check it out:

STOCKBROKERS AFFILIATE LINKS

Bottom Line

You can easily invest in gold using the Robinhood app, and it being one of the easiest and most accessible options to the general public then it is no wonder why so many investors are hyped about putting some money on Gold ETFs or stocks using Robinhood, be noteworthy of the many different risks investing in gold represents however, and always make informed investment decisions.

We hope this article helped you, for more information on investing in precious metals, commodities, and jewelry we kindly ask you consider visiting our home page.