How to get started with gold? Exploring the five main ways to understand the barriers and costs of investing in gold

In recent years, geopolitical risks have intensified, and inflation concerns continue to ferment, leading many to turn their attention to traditional safe-haven assets like gold. The problem is, there are many ways to invest in gold—some hold physical gold bars, others trade paper gold in accounts, and some rely on leveraged contracts to speculate on short-term price differences. How can you buy gold most cost-effectively? This article outlines five mainstream gold investment channels, comparing their risks, costs, and returns to help you find the most suitable method.

Is Gold Still Worth Buying Now? Let the Data Speak

International gold prices have experienced a remarkable surge over the past few years:

• Between 2022-2023, gold prices fluctuated dramatically between $2000 and $1700, mainly impacted by geopolitical conflicts and Federal Reserve rate hikes
• After entering 2024, thanks to rising expectations of US rate cuts and record-breaking central bank gold purchases worldwide, gold prices broke through historical highs. In 2024, global central banks net purchased 1,045 tons of gold—continuing a three-year streak exceeding 1,000 tons—directly supporting gold prices to surpass $2,700
• By 2025, international gold prices had broken through $3,700, with Goldman Sachs even projecting a target of $4,000 per ounce by mid-2026

Nevertheless, gold prices are influenced by complex and variable factors, making short-term trends difficult to predict precisely.

If you prefer to hold gold long-term for appreciation, the key is to find the right entry point and avoid chasing after price increases. In this case, consider buying physical gold, gold savings accounts, or gold ETFs, focusing on patience and waiting.

If you seek higher profits and can tolerate market risks, short-term and swing trading are options. This requires learning technical analysis to profit from buy-sell spreads. Gold futures and gold CFDs track international spot gold prices; once you master analysis methods, you can go long or short. The entry barrier is relatively accessible—for example, some platforms allow opening a trade with as little as $50.

Quick Comparison of 5 Major Gold Investment Methods

Want to know where to buy gold most cost-effectively? It depends on your investment purpose.

If your goal is to hedge against inflation, physical gold is worth considering, but be prepared for storage costs. If you aim to profit from volatility, paper investment tools like gold savings accounts, ETFs, futures, and CFDs are more flexible. Note that long-term investment returns in gold are usually not outstanding; real profit opportunities often come from short-term trading, which is best achieved through gold futures and CFDs.

1. Physical Gold: Tangible but Liquidity Is a Bottleneck

Physical gold includes bars, ingots, and commemorative coins. Usually available at banks or jewelry stores, but it’s recommended to buy gold bars directly. Be cautious with gold jewelry and commemorative coins—they include processing fees, and selling them involves paying handling and wear-and-tear costs, making the spread less favorable.

The core issue with physical gold is that it is not an income-generating asset. After purchase, you need to bear storage costs like safe deposit boxes, and liquidity is poor—there’s a “buy easy, sell hard” phenomenon. However, if you value long-term preservation and collection, physical gold still has unique appeal.

From a tax perspective, if physical gold transactions exceed NT$50,000, you must declare personal occasional trade income, calculated at a 6% profit rate, and include it in the following year’s comprehensive income tax.

Suitable for: Investors valuing collection and risk hedging

Advantages: Low risk | Direct buying/selling | Strong holding confidence

Disadvantages: Higher unit price | Requires proper storage | Additional costs

Where to buy physical gold bars more reasonably?

Most banks in Taiwan offer gold services, but for buying gold bars, large commercial banks are more reliable. Gold bars are generally unprocessed, with lower fees. These banks’ gold bars are usually sourced from internationally recognized refineries, ensuring quality. Sizes start from 100 grams, with options for 250g, 500g, and 1kg.

For smaller grams, jewelry stores or pawnshops are alternatives. Regardless of where you buy, purity is the most critical factor because sales are based on weight. Avoid fake gold bars (which have large bargaining margins), and don’t be tempted by flashy brands or appearances. Also, consider storage safety and actual costs involved.

2. Gold Savings Account: Between Physical and Paper

Gold savings accounts, also called “paper gold,” allow you to buy gold stored and managed by banks, eliminating the hassle of physical possession. Transactions are conducted via bank accounts, and many large financial institutions offer this service. If needed, gold savings accounts can be exchanged for physical gold.

Bank gold savings accounts typically have three purchase methods: NT dollar valuation, foreign currency valuation, and the newly introduced dual-currency gold savings account (which offers potential gains from both exchange rates and gold price fluctuations). Different methods have different fees.

Buying in NT dollars involves exchange rate risk (since international gold prices are quoted in USD), while buying in foreign currency involves initial currency conversion costs. Overall, the total costs of both methods are comparable, with moderate friction. However, each buy/sell incurs fees, so frequent trading can accumulate significant costs. It’s not recommended to trade excessively.

Tax-wise, profits from gold savings accounts are considered property transaction income, to be declared in the following year’s comprehensive income tax. Losses can be deducted from property transaction income, and any unclaimed deductions within three years can be carried forward.

Suitable for: Investors seeking low-cost, low-frequency trading

Advantages: Relatively controlled risk | Supports small transactions | Can be exchanged for physical gold

Disadvantages: Limited trading hours | Cannot short-sell | Currency exchange costs to consider

Which banks’ gold savings products are more user-friendly?

Many banks in Taiwan offer gold savings accounts. Larger commercial banks and mid-tier financial institutions have more mature products, user-friendly interfaces, and responsive customer service. Choose based on personal preference.

3. Gold ETF: Small Investment, High Liquidity

Gold ETFs are “gold index funds.” As funds, they charge management fees. Investors can choose domestic Taiwan gold ETFs or overseas gold ETFs, each with its features.

Taiwan’s local gold ETFs have management fees (~1.15% annually), transaction fees (0.15%), and a trading tax (0.1%). US gold ETFs’ costs include management fees (0.4%-0.25% annually), transaction fees (0%-0.1%), and currency conversion costs (~0.32%).

Advantages of gold ETFs include low investment threshold, good liquidity, and easy trading. However, they can only go long, not short. This makes them especially suitable for beginners and retail investors aiming for long-term holding, often serving as the first step into the gold market.

Suitable for: Beginners and long-term investors

Advantages: Flexible trading | Affordable entry | Sufficient liquidity

Disadvantages: Watch management fees | Trading hours are limited

Where to buy gold ETFs more cheaply?

Besides local brokers for Taiwan ETFs, if you have an overseas brokerage account, US gold ETFs tend to have lower costs and smaller tracking errors. However, this requires opening a US stock account and currency exchange.

4. Gold Futures: T+0 Trading 24/7, but Risks and Rewards Coexist

Gold futures are contracts based on international gold prices. Your profit or loss depends on the price difference at entry and exit. Upon expiration, you need to settle or roll over.

Futures support two-way trading, long trading hours, and lower holding costs. With a margin deposit, leverage can amplify your capital. It’s especially suitable for short-term traders and professionals. Gold futures prices are linked to international markets 24/7, making manipulation difficult.

The downside is that all futures have expiration dates, involving delivery or rollover costs. Holding a position into the delivery month results in forced settlement. Due to leverage, profits can be magnified, but so can losses—strict risk management is essential.

Tax-wise, gold futures are classified as futures commodities. The futures transaction tax has been suspended, with only a small transaction tax (~0.025%).

Where to trade gold futures?

In Taiwan, futures are traded through the local futures exchange, with shorter trading hours. Overseas futures brokers offer nearly 24/7 trading, with higher liquidity and volume. Many overseas brokers have Chinese interfaces and customer service, making operation straightforward.

Suitable for: Short-term traders, swing traders, larger capital investors

Advantages: T+0 trading 24/7 | Long and short positions | Leverage enhances capital efficiency

Disadvantages: Leverage risk | Delivery and rollover costs | Requires risk management

5. Gold CFDs: The Cheapest Leverage Tool

If you have derivatives trading experience, CFDs are a quick way to enter the gold market.

CFDs track spot gold prices, support two-way trading, no physical delivery, and no expiration date—more flexible than futures. Your profit comes from the price difference between buy and sell. The main features are very low entry thresholds, flexible leverage, and simple costs mainly from spreads and overnight financing.

Trading gold CFDs is simpler than other derivatives—no need to choose products, just judge the gold price trend, making it relatively easy to learn.

Tax-wise, if overseas trading profits exceed NT$1 million in a year, they must be included in the personal basic income, taxed under the minimum tax regime.

Futures vs CFDs, what are the differences?

• Contract size: Futures have fixed minimum sizes; CFDs are more flexible with lower margin requirements
• Expiration: Futures have fixed delivery dates; CFDs have no time limit
• Cost structure: Futures involve fees and taxes; CFDs mainly have spreads
• Capital requirement: Futures generally require more capital

Suitable for: Small-scale swing traders, quick testers

Advantages: Small initial capital | Long and short | T+0 trading | Easy account opening

Disadvantages: High leverage risk | Needs trading skills | Choose regulated platforms

Where to trade gold CFDs more safely?

CFD is a global market, with larger overseas platforms. The market is mixed, so ensure the broker is regulated by reputable international financial authorities to avoid scams. It’s recommended to choose brokers with recognized regulation.

Why Does Gold Always Have a Market?

◆ Gold is inherently a store of value, repeatedly proven to hedge against inflation

◆ The gold market is globalized, with ample liquidity, so there’s no shortage of buyers

◆ During turbulent times, gold is a recognized “safe haven,” widely allocated by institutions

◆ When the dollar depreciates or inflation rises, gold often becomes the last line of defense

It may sound like old news, but why do institutional investors still insist on allocating gold in their portfolios? Because gold provides a sense of security and certainty. Although it is more volatile than fixed deposits and doesn’t generate fixed income like bonds, and doesn’t have the limitless imagination of stocks, during increasing market uncertainty and financial risks, gold offers psychological support to investors. Almost all investment institutions recommend allocating at least 10% of their portfolios to gold.

Whenever the economy downturns, markets become volatile, or geopolitical risks rise, the enthusiasm for investing in gold surges. Historically, whenever systemic economic risks, geopolitical crises, or wars occur, gold prices tend to fluctuate sharply. For example, after the Russia-Ukraine conflict erupted in 2022, gold prices soared to $2,069. Recently, in 2024-2025, with record central bank gold purchases and rising rate cut expectations, international gold prices again broke through $3,700.

Because the international gold market is large and long-established, it reacts quickly to major events, creating its characteristic rapid surges and drops. As a result, many investors use gold both for short-term trading to profit from price swings and as a hedge in their portfolios.