How to buy gold to get the best value? Understand the advantages and disadvantages of the 5 major investment channels at a glance

Looking to invest in gold but don’t know where to start? As geopolitical conflicts intensify and central banks worldwide aggressively buy gold, many investors are wondering how to buy gold. In fact, gold investment is not just about buying physical gold bars; there are also gold savings accounts, ETFs, futures, and contracts for difference (CFDs), each with different thresholds, costs, and risks. This article will thoroughly analyze the advantages and disadvantages of five gold investment methods to help you find the most suitable entry point based on your investment style.

Is it worth buying gold starting in 2026?

Gold prices have experienced dramatic rises in recent years. From the $2,000 fluctuations in 2022-2023 to breaking new highs in 2024 driven by expectations of Fed rate cuts and record-breaking central bank gold purchases, gold prices have surged. By the end of 2025, gold has surpassed $3,700 per ounce, with Goldman Sachs predicting it could challenge $4,000/oz by mid-2026.

However, short-term trends are unpredictable. The key to deciding how to buy gold depends on your investment goals:

Long-term preservation investors: Focus on finding good entry points. Consider physical gold, gold savings accounts, or gold ETFs, waiting for time to bring returns.

Short-term traders: If you can bear market risks and understand technical analysis, gold futures and CFDs can amplify gains through two-way trading, but the risks are higher.

Cost comparison of 5 gold investment methods

Long-term investors: The lowest cost is with gold ETFs.
Short-term traders: The lowest transaction cost is with gold CFDs.

Physical gold trading: preservation but watch out for costs

Buying gold bars or coins is a traditional hedge, available at banks and jewelry stores. However, physical gold has two main drawbacks:

High costs: Includes manufacturing and handling fees at purchase, plus storage and insurance costs later. Physical gold does not generate interest, so these additional expenses erode returns.

Poor liquidity: Selling often involves difficulties, unfavorable prices, and additional costs like wear and discounts, especially for jewelry and commemorative coins, making them less suitable for investment.

Tax reminder: Transactions exceeding NT$50,000 must be declared as personal occasional trade income. Profits are taxed at a 6% net profit rate and included in next year’s comprehensive income tax.

Suitable for: collectors seeking physical holdings or long-term asset allocation.

Gold savings accounts: bank-managed peace of mind

Gold savings accounts (paper gold) allow you to benefit from gold price increases without holding physical gold, as banks store the gold for you. Banks like Bank of Taiwan, E.SUN Bank, and Yuanta Bank offer this service.

Three purchase options: NT dollar purchase (exposure to exchange rate risk), foreign currency purchase (exchange costs), dual-currency gold savings (benefit from both exchange rate and gold price movements).

Cost considerations: All options involve moderate friction costs. Frequent trading accumulates fees and exchange risks. It’s recommended to keep trading infrequent to avoid unnecessary costs.

Tax treatment: Profits are considered property transaction income, reported in the following year’s individual comprehensive income tax. Losses can be carried forward.

Suitable for: conservative investors wanting to enter the market without frequent trading.

Gold ETF trading: low-cost entry for small investors

Gold ETFs track gold prices via index funds, with the lowest investment threshold and best liquidity. In Taiwan, there’s 00635U; in the US, GLD and IAU are popular.

Cost structure: Taiwan gold ETF annual fee around 1.15% plus trading fees; US ETFs have annual fees of only 0.25-0.4%, but require currency exchange costs. US ETFs generally have lower expenses.

Trading features: Only long positions, no short selling. Suitable for long-term dollar-cost averaging, not for short-term speculation.

Suitable for: beginners, long-term asset allocators, low-cost investors.

Gold futures: short-term profit pursuit

Gold futures are contracts based on international gold prices, allowing two-way trading (long/short), with long trading hours and low holding costs. Margin trading amplifies capital efficiency.

Risks: Futures contracts have expiration dates; if not closed before expiry, forced delivery occurs, incurring rollover costs. Leverage magnifies both gains and losses, requiring strict risk management.

Tax benefits: Futures trading income is exempt from income tax, with a very low transaction tax of 0.0000025, making it tax-efficient.

Trading hours: Taiwan futures markets are shorter, but overseas brokers offer nearly 24-hour trading with higher liquidity.

Suitable for: experienced derivatives traders, short-term traders, medium-capital investors.

Gold CFDs: lowest entry barrier for quick trading

Gold CFDs are contracts tracking spot gold, without physical ownership or expiry dates, offering more flexibility than futures. The biggest advantage is the extremely low entry threshold—some platforms require only $18-50 to start trading.

Trading features: Two-way trading, T+0 (same-day) trading, flexible leverage. Fees mainly come from spreads and overnight financing.

Risk warning: Leverage amplifies both profits and losses. Beginners should avoid leverage initially and practice with low costs.

Tax considerations: Income from international gold trading is considered overseas income. If annual income exceeds NT$1 million, it must be included in the basic income calculation.

Futures vs CFD: CFDs have no minimum contract size (lower margin), no expiry, and better trading costs, but futures have deeper liquidity.

Suitable for: investors seeking quick entry, small investment amounts, and willing to learn trading.

How to buy gold? Choose the best method based on your investment goals

The core of gold investment is not the channel itself but your investment objectives and risk tolerance.

For preservation and hedging: Choose physical gold (traditional, tangible, psychological comfort) or gold ETFs (low cost, liquidity, long-term allocation).

For steady income: Gold savings accounts offer bank custody convenience, avoiding physical storage issues.

For short-term profit: Gold futures and CFDs are options, but require technical skills and risk awareness. CFDs, with the lowest entry barrier and 24/7 trading, are more suitable for beginners.

No matter how you buy gold, remember one thing: don’t wait for prices to rise before entering. Good investing starts with finding the right entry point and method that suits you. With central banks continuing to buy gold and geopolitical risks persisting, allocating 10-15% of your portfolio to gold as a hedge remains a standard practice among institutional investors.