Five major options for gold investment channels: how should investors enter to minimize costs?

Will Gold Prices Reach New Highs in 2025? Is It Still a Good Time to Enter?

In recent years, international instability and persistent inflation have made gold, a traditional safe-haven asset, once again a focal point for investors. Data shows that gold prices were highly volatile between 2022 and 2023, fluctuating between $1,700 and $2,000. In 2024, gold prices started to rise steadily, reaching new all-time highs. By 2025, gold prices have broken through the $3,700 mark, with institutions predicting further short-term gains.

Many factors are driving the rise in gold prices—expectations of Federal Reserve rate cuts, record gold purchases by central banks worldwide (in 2024, global central banks net bought 1,045 tons of gold, exceeding 1,000 tons for three consecutive years), and increasing geopolitical risks. However, investors need to understand that short-term gold price movements are full of uncertainties. The focus should not be on guessing the highs and lows but on finding a suitable entry strategy.

How to Buy Gold Most Cost-Effectively? Clarify Your Investment Goals First

Before choosing how to buy gold, you must ask yourself: Are you aiming for long-term preservation of value, or are you looking to make quick profits through price differences?

Long-term preservation route: Suitable for purchasing physical gold, gold savings accounts, or gold ETFs. These methods carry relatively lower risks, have moderate liquidity, and transaction costs are not particularly high. The downside is that returns tend to be steady without explosive gains.

Short-term trading route: If you have a certain risk tolerance, gold futures and gold CFDs(CFD) can offer higher profit opportunities. Both tools support two-way trading and leverage, allowing 24-hour continuous trading, suitable for experienced traders.

Cost Comparison of the Five Major Gold Investment Channels

Detailed Analysis of the Five Ways to Buy Gold

1. Physical Gold — Traditional Choice, Lowest Risk

Physical gold includes bars, ingots, commemorative coins, etc., available at banks or jewelry stores. Advantages are low risk and easy understanding; disadvantages include high unit prices, storage costs, and poor liquidity.

Recommended purchase targets: Gold bars over 100 grams, avoid gold jewelry and illusionary gold bars, as processing and handling fees significantly increase costs.

Tax reminder: Transactions exceeding NTD 50,000 require declaration of personal occasional trade income, calculated at a 6% profit rate.

2. Gold Savings Account — Digital Gold, No Storage Hassles

Gold savings accounts are a type of “paper gold” product offered by banks. Buyers do not hold physical gold but record holdings via an account. Handling fees range from 0.5% to 1%, offering more convenience than physical gold.

Advantages: Small transactions supported, can buy with TWD or foreign currencies, and can exchange for physical gold.

Disadvantages: Only supports buy low, sell high; cannot short; subject to exchange rate risk; frequent trading incurs cumulative fees.

3. Gold ETF — Best for Lazy Investors

Gold ETFs track gold prices via index funds, bought and sold like stocks, with low investment thresholds and high liquidity. Multiple gold ETFs are available in Taiwan and the US, with management fees between 0.25% and 1.15%.

Advantages: Easy trading, transparent costs, suitable for long-term holding.

Disadvantages: Only supports bullish positions, no shorting; trading hours are limited; annual management fees apply.

4. Gold Futures — Choice for Professional Investors

Gold futures are contracts based on international gold prices, allowing traders to profit from price differences. The international futures market operates nearly 24 hours, supports two-way trading, and uses margin trading with leverage multiples of 20~50 times.

Advantages: T+0 trading, two-way operation, all-day trading, very low transaction tax (only 0.0000025).

Disadvantages: Expiry dates and rollover costs; high leverage risk; physical delivery or forced liquidation required; requires professional trading skills.

5. Gold CFD — Fast Track for Small Investors

Gold CFDs(CFD) are contracts tracking spot gold, without physical delivery, no expiry date, more flexible than futures. Minimum entry is very low, around $20.

Advantages: Very low entry barrier, two-way operation, T+0 all-day trading, adjustable leverage, no expiry.

Disadvantages: High leverage risk; requires trading skills; overnight positions incur fees.

Tax reminder: Income earned via CFDs is considered overseas income; if exceeding NTD 1 million annually, it must be included in personal basic income.

Gold Futures vs. Gold CFD, Which Is More Suitable for You?

Both are suitable for short-term trading but have clear differences:

• Minimum Investment: CFD is lower, starting around $20.
• Trading Hours: CFD operates nearly 24/7; futures have specific expiry and rollover times.
• Cost Structure: CFD has no trading commission, futures incur trading taxes.
• Flexibility: CFD has no expiry concerns; futures require manual rollover.
• Target Audience: CFD suits small-capacity short-term traders; futures are better for well-funded professional investors.

Why Is Gold Investment So Popular?

Gold is widely held by institutional investors not because it offers explosive profits but because it provides certainty—it preserves purchasing power during market turbulence.

Empirical data shows that whenever geopolitical conflicts, financial crises, or inflation heat up, gold prices tend to rise ahead of other assets. That’s why professional portfolios often recommend a gold allocation of at least 10%.

How to Buy Gold: Act Immediately After Choosing Your Strategy

No matter which gold buying method you choose, the most important thing is to act immediately after clarifying your investment goals, rather than waiting for prices to rise further. Whether for long-term preservation or short-term trading, entering early can bring more profit potential.

Remember: There is no absolute best way to invest in gold—only the way that suits you best. Choose based on your capital, risk tolerance, and trading frequency; that’s the first step to success.