Stacker Guides · Buying
How to Buy Gold and Silver for the First Time
What to buy, where to buy it, what you should pay over spot, and the mistakes that cost first-time buyers the most. From someone with nothing to sell you.
By Joel Perkes · · 8 min read
To buy gold or silver for the first time, first decide what you want to own: coins, bars or rounds you hold yourself, or a fund that owns metal for you. Then compare the total price at two or three places, such as a large online dealer, a local coin shop, Costco or the US Mint. Turn each quote into a premium over the spot price, add shipping, card fees and any sales tax, and check what the same seller would pay to buy it back. For a first purchase, the most common choices are a one-ounce government coin such as an American Eagle or a Canadian Maple Leaf, or a small bar from a well-known refiner.
Buying your first ounce is a little like ordering at a restaurant where every menu lists the price of the cow. That number, the spot price, is real, but nobody sells you a steak at it. This guide walks through what to buy, where to buy it, what you should expect to pay over spot, and the handful of mistakes that cost first-time buyers the most.
Should you buy physical gold or a gold ETF?
Most “how to buy gold” pages from banks and brokers are really about funds, because that is what they sell. Both are ways to own gold; they are different things.
| What you buy | What you own | Main costs |
|---|---|---|
| Coins and bars you hold | The metal itself | Premium over spot, shipping, storage and insurance at home, the dealer’s spread when you sell |
| Metal in a vault in your name | Specific bars or coins, held for you | The premium, plus a yearly storage fee |
| Gold or silver ETF shares | Shares in a trust that owns vaulted bars | A yearly fee, for example 0.10% to 0.40% for the largest gold funds, and a broker’s commission if any |
A fund is cheap to buy and sell in any amount and needs no safe. Physical metal costs more to buy and sell, but it is in your hands and depends on nobody else’s promise. Many stackers own metal precisely for that second reason. Our cost to store gold calculator compares a home safe, a bank box, a vault, an ETF and a gold IRA over any number of years.
What should a beginner buy first: coins, bars or rounds?
| Type | Examples | Good to know |
|---|---|---|
| Government bullion coins | American Eagle, Canadian Maple Leaf, British Britannia, Austrian Philharmonic | Easiest to recognize and sell; higher premium than bars |
| Bars | 1 oz to 10 oz gold, 1 oz to 100 oz silver, from refiners such as PAMP, Valcambi or the Royal Canadian Mint | Lower premium per ounce as the bar gets bigger |
| Rounds | 1 oz silver pieces made by private mints | Coin-shaped but not legal tender; usually the cheapest silver per ounce |
| Junk silver | US dimes, quarters and halves dated 1964 or earlier | 90% silver, priced by face value; see what junk silver is |
Two things catch new buyers out. Fractional gold coins, such as a tenth-ounce Eagle, cost far more per ounce than one-ounce coins, because every coin needs the same minting and handling whatever its size. And proof coins, graded coins in plastic slabs, and anything sold as “limited” are priced as collectibles, so the extra you pay is rarely paid back when you sell. Our guide to whether graded and proof coins are worth the premium puts numbers on it, and Silver Eagle vs Maple Leaf vs Britannia compares the big silver coins.
Should you buy gold or silver first?
It depends on what you want, and it is a choice, not a rule. Gold packs a lot of value into a small space and carries lower premiums in percentage terms. Silver lets you buy in small amounts, but it costs more over spot per ounce and takes up much more room: $10,000 of silver fills a heavy box, while $10,000 of gold fits in a pocket. Our gold-silver ratio tool shows how many ounces of silver one ounce of gold buys today and how that has changed since 1970.
Where is the best place to buy gold and silver?
| Where | Pros | Cons |
|---|---|---|
| Large online dealers | Wide choice, prices close to the cheapest, posted buy-back prices | Shipping and card fees; you wait for delivery |
| Local coin shop | See the item first, no shipping, can pay cash, can sell back to the same shop | Prices vary a lot from shop to shop; smaller stock |
| Costco (members, online) | Gold bars and coins and silver coins near spot, plus membership and card rewards | Limits per member, sells out, won’t buy it back |
| US Mint | Sells proof and collector coins directly | Doesn’t sell bullion coins to the public; collector prices well above the metal |
| Marketplaces and private sales | Sometimes the cheapest prices | Fakes are common; you must test what you get |
| TV, radio and phone sellers | Easy to reach | Often push high-markup coins and gold IRAs; compare before buying anything |
The US Mint doesn’t sell bullion Eagles to the public. It sells them to a short list of wholesalers called authorized purchasers, who sell to dealers, which is why you buy an Eagle from a dealer rather than from the Mint. For Costco, our Costco gold and silver calculator shows what you really pay after rewards. In one example on that page, a one-ounce bar priced 2.5% over spot comes out about 1.6% under spot after the 2% Executive reward and 2% card cash back.
How much over spot should you pay for gold and silver?
Expect to pay something over spot for every coin and bar, because minting, wholesale, the dealer and shipping all cost money. The price-comparison site FindBullionPrices tracks the cheapest dealer price each day. Its monthly averages from June 2025 to October 2026 ran from 0.56% to 3.75% over spot for a one-ounce Gold Eagle, and from 1.98% to 14.23% for a one-ounce Silver Eagle. Generic silver rounds and big silver bars ran lower. Premiums jump when everyone buys at once.
Our guide to why gold and silver cost more than spot explains where the premium goes, and the premium calculator turns any quote into a premium and gives it a grade.
Can you buy gold or silver at the spot price?
Rarely, and only in small amounts. Dealers sometimes list one ounce of silver “at spot” for new customers, usually with a limit per household and normal shipping charges, so the true price lands above spot. Marketplace listings below spot do exist, but they are the bargain bin, and the place fakes are most often sold. A fair way to judge any deal is the total delivered price against the same item at two other sellers.
How should you pay for gold and silver?
- Bank wire or check: often the cheapest price on dealers’ websites, because the dealer pays no card fee. Checks usually delay shipping until they clear.
- Credit or debit card: convenient, with buyer protection, but many dealers charge a few percent more, which can wipe out the gap between two dealers.
- Cash at a shop: fine, but a dealer must report cash payments over $10,000 on IRS Form 8300. Our guide to what dealers report to the IRS explains the rules, including what counts as cash.
- Sales tax: depends on your state and is charged on where the metal is delivered. Many states exempt bullion completely or above a threshold such as $1,000; a few tax every purchase. See taxes on gold and silver.
How do you know a gold dealer is trustworthy?
Look at how it behaves, not at its advertising. A dealer worth using ships items in stock promptly, posts prices close to other large dealers, shows a buy-back price, and doesn’t press you to switch to something “better”. Warning signs are long delivery delays, offers to “hold” the metal for you in a storage program, prices far below everyone else, and salespeople steering you to rare coins or a gold IRA. In July 2026 a gold dealer known for its TV ads filed for bankruptcy. It owed customers at least $60 million and said it had no metal left. Our guide to what happens if a gold dealer goes bankrupt explains who got hurt and why.
How to buy gold and silver for the first time, step by step
- Set an amount you can leave alone for years. Prices fall as well as rise, and the round-trip cost of buying and selling is easier to recover over time.
- Choose one item. A one-ounce government coin or a small bar from a big refiner is the simplest start.
- Get three quotes, including shipping, card fees and tax, from places you can check.
- Turn each into a premium over spot with the premium calculator, and note each seller’s buy-back price.
- Pay the cheapest way you are comfortable with, and keep the invoice: it records what you paid, which you need for taxes when you sell.
- When it arrives, check it. Weigh it and measure it against the published size: see how to tell if gold is real and how to tell if silver is real, or run the Is My Coin Fake? check.
- Store it, and tell no one who doesn’t need to know. See where to store gold and silver at home.
What does it cost to sell gold and silver later?
Dealers buy below the price they sell at, so most of the premium you pay is lost on a quick round trip. Popular government coins usually fetch the best buy-back prices, which is part of what their higher premium buys. Our guide to where to sell gold and silver compares what coin shops, pawn shops, online dealers and gold buyers pay. In the US, a profit on metal held over a year is taxed as a collectible, at your ordinary rate up to 28%; the capital gains tax calculator works it out.
Outside the US
The steps are the same everywhere; the tax is not. Investment gold is free of VAT in the United Kingdom and the European Union, while silver carries VAT, 20% in the UK, which is why many British stackers favor gold. Canada charges no GST/HST on gold of 99.5% purity or better or silver of 99.9% or better, and Australia charges no GST on investment-grade gold or silver of the same purities. Our guide to why bullion costs more than spot has the table, and the premium calculator works in your own currency.
The first ounce
Nobody gets the very lowest price on their first purchase, and that’s fine. A plain coin or bar, from a seller you checked, at a premium you worked out yourself, is a good first ounce. The second one is where you start to get picky.
Sources
- Premiums over spot: FindBullionPrices premium history, lowest tracked price before shipping, monthly averages June 2025 to October 2026, as summarized in our guide why gold and silver cost more than spot.
- How the US Mint sells bullion coins: United States Mint, Authorized Purchasers of United States Mint Bullion.
- Cash reporting: IRS, Form 8300 and reporting cash payments of over $10,000.
- ETF yearly fees and storage costs: our cost to store gold calculator (fund expense ratios as listed there, June 2026).
- Costco example: our Costco gold and silver calculator.
- Dealer bankruptcy: our guide what happens if a gold dealer goes bankrupt and its sources.
- Sales tax and VAT: our guides on taxes on gold and silver and why gold and silver cost more than spot.
Questions people actually ask
What is the best way to buy gold for a beginner?
Many beginners start with a one-ounce government coin, such as an American Eagle or Canadian Maple Leaf, or a small bar from a well-known refiner, bought from a dealer whose total price they compared with two other sellers.
Where is the best place to buy gold?
There is no single best place. Large online dealers usually have the lowest prices before shipping, local coin shops let you see the item and pay cash, Costco sells some gold to members near spot, and the US Mint sells collector coins. Compare the total delivered price and the buy-back price.
How do I buy physical gold?
Choose a coin or bar, get quotes from two or three sellers, turn each into a premium over the spot price, add shipping, card fees and sales tax, then buy from the best total and check the item when it arrives.
Can you buy gold at the spot price?
Rarely. Coins and bars cost more than spot because minting, wholesale, the dealer and shipping all cost money. Occasional at-spot offers are limited and add shipping, so the delivered price ends up above spot.
How much over spot should I pay for gold?
For one-ounce Gold Eagles, the cheapest dealer prices averaged 0.56% to 3.75% over spot each month from June 2025 to October 2026, according to FindBullionPrices. Fractional coins and collector coins cost much more per ounce.
How much over spot should I pay for silver?
For one-ounce Silver Eagles, the cheapest dealer prices averaged 1.98% to 14.23% over spot each month from June 2025 to October 2026, according to FindBullionPrices. Silver rounds and large bars usually cost less over spot.
Is it better to buy gold coins or bars?
Bars usually cost less per ounce, and larger bars cost less still. Government coins cost a little more but are easier to recognize and often fetch better buy-back prices.
Can I buy gold directly from the US Mint?
Only collector and proof coins. The US Mint sells bullion coins such as Eagles only to authorized purchasers, wholesalers who sell to dealers.
Do I pay tax when I buy gold?
It depends on your state. Many states exempt bullion completely or above a threshold, often $1,000, and a few tax every purchase. Sales tax is charged by where the metal is delivered.
Is buying gold from TV ads a good idea?
Compare carefully. TV and phone sellers often promote high-markup coins and gold IRAs. Check the same item's price at large dealers and ask what the seller would pay to buy it back the next day.
