How to Invest in Gold in 2026: ETFs vs Physical Bullion vs Mining Stocks, Compared for Canadians and Americans

Gold has been one of the standout investments of the 2020s. On September 25, 2026, it traded around $4,321 an ounce. Central banks have been buying heavily, and the Iran conflict and above-target inflation have added to demand.

If you're thinking about owning some, the first decision isn't whether but how. Here are your four main options.

Option 1: Gold ETFs (easiest for most people)

A physically backed gold ETF holds real gold bars in a vault. Each share represents a small amount of gold, and the price follows the gold price.

Popular US-listed gold ETFs:

Fees change occasionally; check the fund's page before buying.

Canadian investors can choose Canadian-listed gold bullion ETFs from iShares, BMO and others, including currency-hedged and unhedged versions. Gold is priced in US dollars, so unhedged funds rise when the loonie falls. See Currency-Hedged vs Unhedged ETFs.

Pros: cheap, easy to buy and sell, can go in a TFSA, RRSP or IRA, no storage worries. Cons: you don't hold the metal yourself; small annual fee.

Option 2: Physical gold (bars and coins)

You buy bars or coins, such as Canadian Gold Maple Leafs or American Gold Eagles, from a dealer, a bank or a mint.

Pros: you own it directly, with no fund or counterparty. Cons:

• Premiums: you pay above the gold price when you buy, often a few percent, and receive below it when you sell.
• Storage and insurance: a safe-deposit box or home safe costs money and carries risk.
• Selling takes effort: you need to find a buyer and may need to verify authenticity.
• Can't go in most registered accounts.

Physical gold suits people who want an asset outside the financial system. For most investors, it's more expensive than an ETF.

Option 3: Gold mining stocks

Miners are companies that dig gold out of the ground. You can buy individual miners or a mining ETF.

Miners are a leveraged bet on gold. Suppose a miner's all-in cost to produce an ounce is $1,800:

That leverage works in reverse, too. Miners also face risks gold doesn't: rising costs, mine accidents, political risk, debt and management mistakes. Recent results show another catch: record earnings don't always mean record cash, as we explain in Gold Miners: Record Earnings, Less Cash.

Canada is home to many of the world's largest gold miners, and they make up a meaningful part of the TSX.

Option 4: Royalty and streaming companies

These companies finance mines in exchange for a share of future production or revenue. They don't run mines, so their costs are lower and more predictable. They sit between gold ETFs and miners in risk. Several of the biggest are Canadian.

How gold is taxed

United States:

• Physical gold and many physically backed gold ETFs (structured as grantor trusts) are taxed as collectibles. Long-term gains face a maximum 28% federal rate, higher than the usual 15% or 20% long-term rate.
• Mining stocks and mining ETFs are taxed like regular stocks.
• In an IRA or Roth IRA, this doesn't matter.

Canada:

• Gains on gold ETFs, miners and, for most investors, physical gold are generally capital gains, with 50% included in income.
• Gold ETFs and listed miners are qualified investments for TFSAs and RRSPs, so gains there can be sheltered entirely.

How much gold should you own?

There's no single right answer. Gold has no earnings and pays no dividends, so its long-run return depends only on what the next buyer will pay. It tends to shine during crises, high inflation or a weak US dollar, and to lag during strong economies.

Many portfolio models hold 0% to 10% in gold as a diversifier. A small allocation can cushion a portfolio in bad years without dragging too much in good ones.

Remember: after a big run, gold can fall hard. It dropped more than 40% from its 2011 peak before recovering years later.

Five mistakes to avoid

1. Buying after a big spike with money you'll need soon.
2. Overpaying for coins with high dealer premiums or "collectible" markups.
3. Confusing miners with gold. They can fall even when gold rises.
4. Ignoring fees. A 0.40% fee costs four times as much each year as a 0.10% fee on the same gold.
5. Making gold your whole plan. It works best as a small supporting piece.

Bottom line

For most people, a low-cost, physically backed gold ETF in a registered or retirement account is the simplest way to own gold. Physical bullion suits those who want the metal in hand. Mining stocks are for investors who want more upside and accept more risk. Whatever you choose, keep gold to a size that helps your portfolio, not one that defines it.

Frequently asked questions