Comprehensive analysis of 5 channels to buy gold: How beginners can choose the most cost-effective option

Looking to buy gold for preservation or profit from price differences but don’t know where to start? In recent years, geopolitical conflicts and ongoing inflation pressures have made gold an increasingly attractive safe-haven asset. However, there are many ways to buy gold—from physical bars to online contracts for difference (CFDs)—each with different costs, risks, and returns. This article provides a detailed analysis of five mainstream gold investment channels to help you quickly find the most suitable way to buy gold.

Is Buying Gold Still Worth It in 2026? Analysis of Gold Price Trends and Investment Timing

Gold prices have experienced significant volatility over the past few years. Between 2022 and 2023, influenced by geopolitical conflicts and Federal Reserve rate hikes, gold fluctuated sharply between $2,000 and $1,700. But starting in 2024, the situation reversed—expectations of rate cuts in the U.S. increased, and record-breaking gold purchases by global central banks pushed prices to new highs.

Data shows that in 2024, global central banks net purchased 1,045 tons of gold, exceeding the thousand-ton mark for the third consecutive year. This unprecedented gold-buying frenzy directly supported gold prices to break through $2,700. By 2025, gold prices even surged past $5,600, with an annual increase of nearly 65%. These figures indicate that institutional investors remain optimistic about gold’s long-term prospects.

So, the question is: Is it still worth buying gold now?

In the short term, gold prices are difficult to predict due to factors like exchange rates, geopolitical risks, and Federal Reserve policies. But if your goal is long-term preservation, the key isn’t whether prices have already risen but finding a reasonable entry point to avoid buying at a high. Additionally, different investment periods require different methods—long-term holdings can consider physical gold or ETFs, while short-term traders might look at futures and CFDs.

Comparing 5 Main Ways to Buy Gold: Costs and Benefits at a Glance

Before deciding how to buy gold, check this comparison table to quickly identify the most suitable investment channel for you:

Quick decision: Which should you choose?

• Want physical storage and long-term hedging? → Buy physical gold
• Have spare cash but don’t want to worry about trading details? → Gold savings account or ETF
• Have some market knowledge and want quick profits? → Gold futures or CFD

Want to Preserve Value and Hedge Risks? What to Watch Out for When Buying Physical Gold

Physical gold includes bars, ingots, and commemorative coins, representing the most traditional way to preserve value. Its biggest advantage is not relying on any financial institution or government credit, maintaining value even in extreme situations, making it the ultimate insurance in your portfolio.

However, buying physical gold also has obvious drawbacks. First, initial investment is relatively large—often several thousand to tens of thousands of yuan—creating a barrier for ordinary investors. Second, liquidity can be an issue—while easy to buy, selling can be tricky, with significant bid-ask spreads. Plus, there are hidden costs like storage fees, authentication costs, and transportation insurance, which are often underestimated.

The right approach to buying physical gold:

Buy from banks rather than jewelry stores. Major Malaysian banks like Maybank, CIMB, Public Bank, RHB Bank, and U.S. institutions like JPMorgan, Bank of America, and Wells Fargo offer standardized gold bars. These bars are uniform (1g, 5g, 10g, 1 oz, etc.), with transparent buyback policies and lower fees. In contrast, jewelry store gold often includes processing fees, brand premiums, and wear-and-tear costs, making it less cost-effective.

If you must buy small grams of gold from a jewelry store, remember: Focus on purity, not appearance. Since resale is based on weight, decorative “fantasy” gold bars may look attractive but often carry 30%-50% premium over standard bars. For hedging against inflation, it’s unnecessary to pay extra for aesthetics.

Also, insist on LBMA certification or other authoritative authentication certificates when purchasing, which can save you trouble when liquidating later. Keep your purchase receipts safe to simplify tax reporting and future transactions.

Gold Savings Accounts vs. Other Methods: How Big Are the Fee Differences?

A gold savings account (also called paper gold) is a “virtual holding”—you own the gold but the bank handles storage, and you get a proof of ownership. This method is more convenient than physical gold, especially for small transactions.

In Malaysia, banks like Maybank, Public Bank, HSBC, RHB, and CIMB offer gold savings accounts, sometimes with multi-currency options (MYR, USD, dual currency). While this adds flexibility, it also introduces exchange rate risk—if you buy in MYR, you face RMB/USD fluctuations; if in USD, initial currency conversion costs apply. Overall, the costs are moderate.

Major downside of gold savings accounts: Frequent trading can rack up high fees. Each buy/sell incurs transaction fees, and currency conversion costs are hard to control. For long-term holdings, physical gold or ETFs might be more cost-effective; for frequent trading, CFDs are preferable.

Small Funds to Buy Gold—Is ETF More Cost-Effective?

Gold ETFs (gold index funds) have been the most popular retail gold investment tool over the past decade. Their advantages are clear: very low threshold (sometimes just 100 yuan), high liquidity (can buy/sell anytime), and transparent fees (usually 0.25%-0.4%).

Major ETFs include:

• Malaysia: 0828EA (management fee 1%/year)
• US: GLD (0.4%), IAU (0.25%)
• Hong Kong: 7800 (Hang Seng Gold ETF)

From a cost perspective, US ETFs tend to have lower management fees but require opening a US brokerage account and currency exchange. Local ETFs have slightly higher fees but avoid exchange hassles.

Limitations: ETFs can only go long; they cannot profit from falling prices. Suitable for those bullish on gold long-term but not for traders aiming to profit from declines. Also, ETFs usually trade during stock market hours, unlike 24/7 CFDs.

Want Short-Term Trading? Futures vs. CFDs—How to Choose

Gold futures and CFDs are derivatives supporting both long and short positions, with leverage amplifying gains. But they differ significantly:

Gold Futures:

• Managed by exchanges, with good liquidity
• Have minimum contract sizes and higher capital requirements
• Require delivery or rolling over at expiry, incurring costs
• Trading hours are limited (US CME futures are nearly 24 hours, but local Malaysian futures are only during business hours)
• Suitable for professional investors

Gold CFDs:

• Can open positions with as little as $50 (some platforms)
• No expiry date; can hold as long as desired
• 24-hour global trading, more flexible
• Multiple leverage options (1x to 100x), allowing beginners to choose lower leverage
• Simple fee structure (spread and overnight fees), more transparent

For short-term traders, CFDs are clearly more user-friendly. You don’t need to precisely calculate contract sizes or worry about expiry and rollover costs.

5 Things Beginners Must Know About Buying Gold CFDs

If you decide to buy gold via CFDs, keep these points in mind:

1. Leverage is a double-edged sword
CFD platforms typically offer 1x, 10x, 20x, 50x, 100x leverage. Higher leverage means you can control $5,000 with just $50, but risks are amplified. Beginners should start with 1-5x leverage, gaining experience before increasing.

2. Spreads and overnight fees are real costs
CFD platforms usually don’t charge traditional commissions but make money through spreads and overnight financing. Frequent trading or long-term holding can quickly accumulate costs.

3. Choose regulated, reputable platforms
Not all CFD brokers are safe. Check for licenses from authorities like ASIC (Australia), CIMA (Cayman Islands), FSC (Belize). Large brokers like IG Markets, Plus500, eToro are well-regulated and safer.

4. Learn technical analysis
Successful short-term trading requires understanding charts, support/resistance levels, and key price points. Use demo accounts to practice before risking real money.

5. Set stop-loss and take-profit levels
Leverage can cause rapid losses. Always predefine exit points to protect your capital—this is essential for survival.

How to Choose the Best Way to Buy Gold? Quick Decision Guide

Finally, tailored recommendations for different investor types:

Conservative Investor

• Goal: Hedging, preservation
• Recommended: Physical gold or gold savings account
• Why: Lowest risk, peace of mind

Busy Professional

• Goal: Asset allocation, steady returns
• Recommended: Gold ETF
• Why: Automated, transparent, low maintenance

Experienced Trader

• Goal: Profit from price swings, higher returns
• Recommended: Gold futures or CFD
• Why: Flexibility, leverage

Limited Funds, Curious to Try

• Goal: Low-risk learning, small-scale experience
• Recommended: Gold CFD (1-5x leverage)
• Why: Low entry barrier ($50), practice with demo accounts

There’s no one-size-fits-all “best” way to buy gold—only what suits your investment horizon, risk appetite, and capital. Remember: Don’t chase trends; find your rhythm. Opportunities always exist, but the right opportunity is the one that fits you best.