Yes, you can buy gold on Robinhood, but not physical gold

Robinhood lets you buy fractional shares of gold ETFs — exchange-traded funds that track the price of gold — but you cannot order a bar or coins to your home. When you buy gold through Robinhood, you own a share of a fund that holds gold or gold futures contracts, not the metal itself. The price moves with the spot price of gold, so you profit or lose money the same way you would if you owned physical gold, but you hold it as a digital position in your brokerage account.

The main gold ETFs available on Robinhood are GLD (SPDR Gold Shares) and IAU (iShares Gold Trust). Both track the price of gold bullion. You can buy fractional shares starting with as little as $1, and you can sell whenever the market is open. There are no storage fees, insurance costs, or shipping hassles — Robinhood handles all of that behind the scenes because the fund manager holds the actual gold in vaults.

Key Takeaways

  • Robinhood offers gold ETFs like GLD and IAU, which let you own a stake in gold without taking physical possession.
  • You can buy fractional shares with small amounts of money, starting at $1 or less depending on the current price.
  • Gold ETFs charge annual expense ratios (typically 0.4% to 0.5% per year), which is deducted from your holdings automatically.
  • You can sell your gold position instantly during market hours, but you cannot convert it to physical gold through Robinhood.
  • If you want to own physical gold bars or coins, you will need to use a different broker or dealer that specializes in bullion.

How gold ETFs work on Robinhood

When you buy shares of GLD or IAU, you are buying a piece of a fund that holds actual gold bullion in secure vaults. The fund manager — State Street for GLD, BlackRock for IAU — stores the gold and publishes the amount held each day. The price of each share moves almost exactly with the price of gold per ounce, minus the fund's annual fee.

You do not have to think about storage, insurance, or authentication. The fund takes care of all of that. You simply buy and sell shares like you would any stock. Dividends are rare with gold ETFs, so your return comes entirely from the price of gold going up or down. If gold rises from $2,000 to $2,100 per ounce, your shares rise by roughly 5% (minus the annual fee).

Costs and fees for gold ETFs

GLD charges an annual expense ratio of 0.4%, and IAU charges 0.25%. This means if you hold $1,000 in GLD for one year, you pay $4 in fees. If you hold $1,000 in IAU for one year, you pay $2.50. These fees are deducted automatically from the fund's value, so you will not see a separate bill — the share price simply reflects the cost.

Robinhood itself does not charge a commission to buy or sell gold ETFs. You pay no trading fee. The only ongoing cost is the fund's expense ratio. If you buy and sell frequently, you may also trigger capital gains taxes, which is a separate issue from the fund fees themselves.

Why people choose gold ETFs instead of physical gold

Gold ETFs are liquid — you can sell in seconds during market hours and have the money in your account. Physical gold requires you to find a buyer, arrange shipping, and wait for payment. ETFs also require no storage vault, no insurance policy, and no worry about theft or damage. You do not have to authenticate the gold or worry about purity.

The downside is that you do not own the physical metal. If you want to hold gold in your hand or store it in a safe, an ETF will not satisfy that goal. You also cannot use gold ETF shares as a hedge against financial system collapse in the way some people view physical bullion — if Robinhood or the fund manager faces a crisis, your shares could be affected differently than physical gold you own outright.

Alternatives if you want physical gold

If you want to own actual gold bars or coins, you will need to use a different broker or dealer. Companies like APMEX, JM Bullion, and Kitco sell physical gold and ship it to you. You pay a markup over the spot price (usually 5% to 10%), plus shipping and insurance costs. You also have to store it yourself or pay a vault service to hold it.

Some brokers like Fidelity and Charles Schwab offer access to physical gold through specialized accounts, but Robinhood does not. If owning the metal itself is important to you, you will need to go outside Robinhood's platform.

How to buy gold ETFs on Robinhood

Open the Robinhood app or website and search for "GLD" or "IAU" in the search bar. Tap or click on the fund you want. You will see the current price, a chart, and a "Buy" button. Tap "Buy," enter the dollar amount or number of shares you want, and confirm the order. The order executes instantly during market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays). After-hours orders are queued and execute at the next market open.

You can set up recurring purchases if you want to buy gold on a fixed schedule — weekly, monthly, or at other intervals. You can also set price alerts so Robinhood notifies you when gold hits a certain price. To sell, find the position in your portfolio, tap "Sell," enter the amount, and confirm.

Tax implications of gold ETFs

When you sell gold ETF shares for a profit, you owe capital gains tax on the difference between what you paid and what you sold for. 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 (at your ordinary income tax rate). If you held them for more than one year, it is taxed as long-term capital gains (usually 15% or 20%, depending on your income).

Robinhood will send you a 1099 form at tax time showing your gains and losses. Keep track of your purchase and sale dates and prices so you can report them accurately. If you buy and sell frequently, the tax burden can add up quickly.

Frequently Asked Questions

Can I convert my gold ETF shares to physical gold?

No. Robinhood does not offer a way to convert ETF shares into physical gold bars or coins. The fund manager holds the gold in vaults, and you own a share of that fund, not the metal itself. If you want physical gold, you must sell your shares and buy from a separate bullion dealer.

What is the difference between GLD and IAU?

Both track the price of gold, but IAU has a lower expense ratio (0.25% versus 0.4%), so it costs less to hold over time. GLD is larger and more heavily traded, so it may have tighter bid-ask spreads. For most people, IAU is the cheaper choice, but either will move with the gold price.

Can I buy gold on Robinhood with fractional shares?

Yes. Robinhood lets you buy fractional shares of GLD and IAU, so you can invest any dollar amount, even $1. You do not have to buy a whole share. This makes gold accessible to people with small amounts of money to invest.

Does Robinhood charge fees to buy or sell gold ETFs?

Robinhood charges no commission to buy or sell. The only cost is the fund's annual expense ratio, which is deducted automatically. GLD costs 0.4% per year, and IAU costs 0.25% per year.

What happens to my gold ETF shares if Robinhood goes out of business?

Your shares are held in your account at a custodian, not by Robinhood itself. If Robinhood fails, your shares transfer to another broker and remain yours. They are also covered by SIPC (Securities Investor Protection Corporation) up to $500,000 per account. Your gold ETF shares are separate from Robinhood's business and are protected.