How to Buy Gold and Silver on Vanguard

How to Buy Gold and Silver on Vanguard

If you are interested in buying gold and silver, you’ve come to the perfect place! We’ve prepared this guide to ensure you have all the information you need to understand the steps, implications, advantages, and disadvantages of choosing to purchase these precious metals on Vanguard.

Whether you need to learn how to open your account, monitor your portfolio, or select the right investment option, you will have all the details at your fingertips.

Please read this full article, as we’ll also be talking about the various taxes, investment alternatives, and whatever other details will be valuable in this endeavor of yours.

Understand though that investing is to be taken very seriously. This is especially true when considering adding precious metals to your portfolio.

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A Quick Look at Vanguard

Let’s start by talking about Vanguard for a bit. Put simply, it is an investment management company that has put together a series of well-designed financial products and services that are meant to help people like you get to your financial goals, which means that you can have a secure future.

Vanguard’s history sees it pioneering index fund investing at a low cost as early as 1975, which is when it was established. It stands to reason then that the company is highly trusted in the investment space. What we really like about it is the way it puts its customers first in all that it does as it wants them to make the most informed decisions possible.

Quick Look at Vanguard

Vanguard isn’t the only firm that does this, you can also check out other major institutions like Fidelity’s precious metals IRA, as they offer similar investment options.

Why Is Investing in Gold and Silver Products a Good Idea?

We think such an investment would be a very strategic move on your part since you would be diversifying your portfolio, taking a step to preserve your wealth, and hedging against market volatility.

Time has shown that precious metals have earned a reputation as safe-haven assets when economic times become uncertain. With gold and silver forming a part of your collection of investments, you spread your risk and minimize loss when market downturns happen.

Additionally, by holding these metals physically, you offer yourself a partial shield against inflation’s erosive effects.

How Do You Enter the Precious Metals Market with Vanguard?

Buying gold and silver on Vanguard is surprisingly straightforward, and boils down to the following steps:

  1. Opening your account
  2. Choosing the investment option that appeals to you
  3. Using the very intuitive trading platform the company offers to execute your purchase

With your account setup, you can begin to browse the different precious metal investment types, including individual retirement accounts that come with tax benefits. We are confident that you’ll find the platform seamless to use, whether it is for tracking your investments, getting updates in real-time, or completing transactions.

Step One: Opening Your Vanguard Account

It stands to reason that your first course of action is going to be opening an account with Vanguard. How else will you get access to the aforementioned investment options? Let’s also take this moment to highlight that Vanguard can be tailored to your individual risk preferences and financial goals.

Vanguard’s offerings span target-date funds, index funds, and ETFs, all of which are designed to meet different investment needs. By carefully analyzing your risk appetite and objectives, you can then start to go after options that are suitable for whatever your situation may be.

Step Two: Choosing Your Precious Metals Investing Option

With your Vanguard account operational, now it’s time to actually choose the investment types that are best suited to whatever strategy you would’ve settled on.

As you do this, you want to start by considering the asset allocation preferences, particularly the percentage that is to consist of precious metals. Let us reiterate that whatever products you choose should be reflective of your risk management strategy and tolerance level.

When you understand these elements well, you position yourself to make more informed decisions. Should you be investing in physical precious metals, mining companies, or exchange-traded funds?

Step Three: Consider How Much You Can Realistically Invest

The next step is going to be deciding what amount you’ll be investing in the gold and silver. Remember that your approach is meant to be as balanced as possible.

As you try to make this determination, the potential returns you’re aiming for in the long run and the level of risk you are comfortable with need to be your biggest considerations.

Once your wealth-building targets are being carefully thought about, it becomes possible to have a diverse portfolio that offers the kinds of protection previously alluded to.

We also think it’s essential to stay abreast of market trends and the different factors that will impact what the prices of precious metals will look like.

Step Four: Order Placement

By now, you know what gold and silver investment option appeals to you, which means it is time to use the well-designed platform provided by Vanguard to safely and efficiently execute your transaction.

The final steps here will be the confirmation of your decision and setting the trade execution in motion. There’s no need to worry about the process being painstaking, as your order will be complete in just a few clicks.

Be reminded that Vanguard has built-in market trend monitoring, real-time data access, and investment tracking. The use of the platform will provide you with a tremendous experience as you try to grow and manage your portfolio effectively.

Are There Fees and Expenses That Come with Buying Gold and Silver on Vanguard?

Buying Gold and Silver

We have to be fair and educate you on the full picture. Sure, being able to invest in a mining fund or in mutual funds is great, as are all the other options that Vanguard offers. However, there are fees and expenses that you need to be aware of, which include charges for setting up your account and for your transactions. These need to be considered as you work out the true investment costs and returns.

Let’s start with transaction costs. These need to be one of your fundamental considerations as you use the platform to make your purchases. Note that the charges are per transaction and will be affected by the types and amounts of precious metals being bought.

There are also account maintenance costs that recur and are meant to keep your investment account functional. Vanguard provides a fee schedule, and we would strongly advise you to review it so all potential charges are clear to you.

How Do You Go About Monitoring Your Vanguard Precious Metals Investments?

Getting your investments off the ground is one thing. However, once you get past that stage, you need to ensure that you are effectively managing and monitoring them. By doing so, you position yourself to evaluate asset valuation, keep on top of your portfolio performance, and ensure that any decisions you make are informed. This increases the likelihood of optimizing financial growth.

We encourage everyone to keep a close eye on all precious metal holdings, and you are no exception. How else are you going to see their contribution to your portfolio and diversification efforts? Review asset performance regularly, as this will help to identify rebalancing opportunities and other investment strategy adjustments as needed.

Finally, you can understand the driving factors that cause precious metal values to change, which means you know when to purchase, sell, or hold on to these assets.

Are There Any Tax Implications of Using Vanguard to Buy Gold and Silver?

Let’s take a moment to consider the tax implications of your gold and silver purchases on Vanguard. After all, you want to be proceeding toward your wealth accumulation objectives effectively, as you remain consider compliance with regulations and laws.

One of your biggest considerations is going to be capital gains taxes. These are incurred whenever precious metals are sold for profit. The rates applicable will differ based on how long the assets are held.

Additionally, you want to think about the reporting requirements that apply to you. Should there be any gains from the sales of gold or silver, that information needs to be on your tax return reports.

What Other Precious Metals Investment Alternatives Are There?

You don’t have to buy your gold and silver through Vanguard. One of the beautiful things about this industry is that you can go the route of buying gold and silver coins, investing in gold mining companies, purchasing ETFs, or even considering futures elsewhere. It is all about considering wealth-building opportunities that may be attractive to you.

Just remember that each choice will have its benefits and drawbacks that you need to think about. For example, if you buy physical gold and silver, you give yourself some level of inflation protection. However, a gold ETF would provide easy liquidation.

Carefully assess what you can tolerate and what you want to achieve as you think about investing in these asset classes.

Physical Gold and Silver

Starting with the easiest piece of the puzzle to understand, physical gold and silver are tangible and will allow some level of confidence during uncertain economic times, which is why this route is so popular for those who want to secure their wealth.

These precious metals have historically kept their purchasing power and reduced the amount of risk that an investor is exposed to. We would highly recommend going this route if improving your resilience is essential to you.

Gold and Silver ETFs

A gold and silver ETF is a great option if you want some level of exposure to precious metals as you diversify your portfolio and benefit from flexibility and liquidation potential.

With ETFs in the mix, you can spread your investments across multiple sectors, which means that your overall portfolio becomes less volatile.

Additionally, you are getting access to gold and silver’s historically solid performance without the need to hold any of it physically. This is great for both inexperienced and advanced investors.

Silver and Gold Mining Stocks

What about the relationship between precious metals and mining companies? Why not benefit from that? The mining industry has always been a strong one, and going this route means that investors can get a piece of the profitability pie.

As you can infer from the wealth protection insights provided above, whenever economic times become uncertain, the demand for precious metals tends to increase.

Note, however, that mining securities come with risks that may be associated with mining companies on an individual level, such as geopolitical factors, operational challenges, and more.

Silver and Gold Futures

Now, we turn our attention to gold and silver futures, which offer a speculative investment type. Here, the aim is to capitalize on movements in the prices of precious metals on the market. If leveraging future pricing trends is your thing, then this may be the best avenue for you.

Essentially, you commit to purchasing or selling a certain amount of gold and silver at a set price on a date in the future. The profit or loss will then depend on the actual movement of the asset price and what it is on the day of the transaction.

Of course, you must consider the risk involved in dealing with futures since price volatility is a big one. You will need a good grasp of market timing if you are to succeed with this kind of investment.

Gold IRAs

A gold IRA is like a standard IRA, except that the underlying asset that backs the account is a precious metal. This means that there are traditional, Roth, and even SEP gold IRAs that are counterparts to their typical variations.

It just so happens that you can fund a precious metals IRA by rolling over funds from your existing retirement account if you so desire. Bear in mind though that the IRS limits the kinds of gold and silver coins and bullion that can be used.

Additionally, there are costs such as account maintenance charges and depository fees that come with these investments.

What Are the Pros of Buying Precious Metals on Vanguard?

Store of Value/Hedge Against Inflation

As indicated before, gold works great as a hedge against inflation since it maintains its value and purchasing power with an inverse relationship to your standard Fiat currencies. Therefore, if you find yourself wanting to secure your holdings or protect yourself from inflation, then this is a great route to go.


You don’t want your portfolio to consist of a single asset or to be too heavily skewed in one direction since doing so means that most or all of your investment line will crumble if a single thing is to fail. To this end, you want to try to branch out with different kinds of investments that come with different risk profiles and benefits.

Precious metals offer a great layer of diversity as an alternative investment type, especially if you want one that doesn’t respond to standard market factors.

What Are the Cons of Buying Vanguard Precious Metals?

Limited Growth Potential

While gold and silver are great at maintaining their value in the face of economic uncertainty, this may not be the best route to go if you are trying to grow your wealth at a rapid pace. While it is true that any investment could turn a profit or loss, the potential for gold is not as great as that of stocks, for example.

Liquidity Challenges

Unless it is that you buy into ETFs or a similar option, you will find that precious metals are not very liquid, especially if you buy them physically. Even if you do find a buyer, you will likely have to sell your holdings at a loss.

Now You Know All About Precious Metals Investing with Vanguard

Vanguard is an incredibly user-friendly platform that you can use to invest in gold and silver. It offers insights such as asset tracking and performance monitoring to help you stay on top of your portfolio. Remember though that you can buy into one of the alternatives alluded to, so long as doing so aligns with your goals and risk tolerance.

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#1 Overall Gold IRA Company (2023)
#2 Top-Ranked Gold IRA Company
#3 Top-Ranked Gold IRA Company

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