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How To Invest in Silver and Gold on Charles Schwab and WeBull


2021 can I trade precious metals, silver and gold commodities, bullion, gold ETFs and precious metals mutual funds on Charles Schwab and WeBull? How to buy gold?



Investing in Gold and Silver at WeBull and Charles Schwab


Investing in gold and silver is possible at several brokerage firms. Schwab and Webull, for example, offer numerous ways to tap into the precious metals market. Keep reading. This article will give you all the details you need to start trading metals.


Charles Schwab


It’s not possible to trade physical gold or silver bullion or coins at Schwab. However, the broker-dealer does offer several other methods to tap into the precious metals market.

The first is the futures market, where gold and silver futures contracts trade regularly. Schwab customers can trade these contracts for a small commission ($1.50 per side). Some of the available contracts we found include SIU19, the front-month silver contract, and PAU19, the same contract for palladium.

Besides futures, Schwab also offers options on futures. These grant the right, but not the requirement, to buy or sell a futures contract at a specified price in the future. While the metal itself serves as the underlying instrument on a futures contract, for an options contract, the underlying instrument is the futures contract.

After futures, Charles Schwab provides trading in gold ETFs and mutual funds that hold physical metal. For example, we found GLDM, the SPDR Gold MiniShares fund that tracks the price of gold bullion. The fund charges a very low expense ratio (0.18%) and is available commission-free through Schwab. Its larger cousin GLD is also available commission-free at Schwab, and the two funds track each other exactly.


Charles Schwab Gold ETF


Options on stocks and ETFs can also be traded at Schwab. This would be an easy to way to take a long or short position on a precious metals fund or gold mining stock without actually trading the underlying security.


Open Webull Account



Open WeBull Account


Webull


Webull doesn’t offer trading in futures, options on futures, or precious metals. This is not a significant drawback since most investors should not use these products. The broker does offer trading in silver and gold stocks and ETFs.

We found many gold mining stocks on Webull’s desktop platform. Because the success or failure of these securities is connected to the price of gold, these would be a good way to tap into the precious metals market. Furthermore, because Webull permits shorting, it’s also possible to make bearish bets on gold.

One stock in particular is Yamana Gold Inc. Trading under the ticker AUY, it is easily tradable on the Webull platform. The broker charges no commissions on any stock trade.

Yamana currently pays a dividend of 2.50%. It has an average daily volume of 15.8 million shares, which means the bid-ask spread is very tight, further reducing the cost of trading. Webull’s platform grades the stock a weak buy, averaged from several analysts. On the day we did our research, Yamana was not available for shorting, but other gold stocks were.

Of course, investors can also trade GLDM and GLD on Webull at no commission.


Open Webull Account



Open WeBull Account