How to get gold bars? Comprehensive evaluation of the five major gold investment channels, a big comparison of investment benefits

Recently, the geopolitical situation has been tense, and inflation concerns continue to rise. As a traditional safe-haven asset, gold has once again become a focus of investors’ attention. Many people think of investing in gold, and the first idea that comes to mind is buying physical gold bars, but gold investment is far more than that. This article will analyze five ways to buy and sell gold in detail, helping you understand the risks, costs, and returns of each investment channel.

Is now a good time to invest in gold? How is the gold price trend?

Price volatility and market environment

Gold prices have experienced significant fluctuations in recent years. Between 2022 and 2023, gold prices fluctuated sharply between $1,700 and $2,000, mainly influenced by geopolitical conflicts and central bank rate hikes. After entering 2024, due to increased expectations of US rate cuts and continuous gold reserve increases by global central banks, gold prices have been rising steadily. The net purchase of gold by central banks worldwide in 2024 reached 1,045 tons, a record high, directly pushing the gold price above $2,700. By September 2025, gold prices had broken through $3,700, and international investment banks even forecast that by mid-2026, it could reach $4,000 per ounce.

Timing and strategy selection

Although the outlook for gold prices is optimistic, many factors influence the market, making short-term trends difficult to predict accurately. For investors aiming for long-term appreciation of gold, the key is to find the right entry point rather than chasing high prices. Such investors may consider buying physical gold bars, gold savings accounts, or gold ETFs.

On the other hand, if you have the risk tolerance and want to earn higher profits through short-term trading, you need to master technical analysis and profit from buying and selling price differences. Gold futures and gold CFD( contracts) are more suitable tools. These derivatives track international gold prices, allowing both long and short positions if the judgment is correct. It’s worth noting that these tools usually require very low initial capital; many brokers allow starting with just $50.

Comparison and analysis of five gold investment methods

Core questions when choosing a gold investment channel

Where is the most cost-effective place to buy gold bars?

It depends on your investment goals: are you aiming for value preservation against inflation, or do you want to profit from buying and selling price differences?

If you want to buy physical gold bars and coins for long-term asset allocation, larger amounts require more capital, mainly for inflation hedging and asset preservation. For large grams of gold, it’s recommended to buy directly from banks, which are safe and reliable but consider storage costs. For smaller grams, you can buy from jewelry shops, focusing on verifying purity and comparing prices to find the best deal.

If you prefer not to buy physical gold, you can choose from gold savings accounts, gold ETFs, gold futures, or gold CFDs. These tools mainly facilitate trading to profit from price differences. Note that long-term returns on gold are generally not very high; traders often adopt short-term strategies when opportunities arise. Gold futures and gold CFDs are most suitable for such short-term trading needs.

Detailed explanation of five major gold investment methods

1. Physical Gold Investment

Physical gold includes gold bars, ingots, jewelry, and commemorative coins, which can be purchased at banks and jewelry shops. It’s recommended to focus on gold bars, and be cautious with jewelry and coins—these often include manufacturing costs in their prices, and selling may incur handling fees and wear-and-tear costs, limiting investment value.

Core issues with physical gold

Physical gold is not interest-bearing; it requires specialized storage like safes or insurance vaults, and liquidity is poor, making it difficult to buy or sell quickly. While holding physical gold provides psychological satisfaction, it is costly as an investment tool. However, as a hedge and long-term preservation or collection, it still has certain value.

Tax considerations

Transactions exceeding TWD 50,000 must be declared as personal occasional trade income. When selling gold bars or jewelry, gains are taxed at a net profit rate of 6%, included in the following year’s individual comprehensive income tax declaration.

Buying gold bars

Taiwanese banks are the main channels for purchasing physical gold bars, and they are the only banks in Taiwan with physical gold trading services. The processing fees are relatively low, and quality is guaranteed. Currently, they mainly sell 100g, 250g, 500g, and 1kg specifications.

For small grams of gold, you can go to jewelry shops or pawnshops. Regardless of where you buy, purity is the most critical factor, as prices are based on weight. Avoid buying illusionary gold bars, as bargaining space is large, and don’t be fooled by appearance or brand. Also, consider the security of storage.

Suitable for: collectors, long-term asset hedging, and value preservation investors

2. Gold Savings Account

Gold savings accounts, also called “paper gold,” allow investors to buy gold with the bank managing the account rather than holding physical gold. Compared to physical bars, this method is more convenient; buying and selling are done directly through the account, and physical gold can also be exchanged. Many large banks offer this service, including Bank of Taiwan, CTBC Bank, First Commercial Bank, and Hua Nan Bank.

Three purchase methods

Banks offer TWD purchase, foreign currency purchase, and the latest dual-currency gold savings account. The handling fees vary significantly. TWD purchases involve exchange rate risk because international gold prices are quoted in USD; foreign currency purchases involve initial currency exchange costs. Overall, the total costs of both methods are similar, representing a moderate friction cost level.

Note that each buy/sell incurs fees; frequent trading can accumulate high costs, so it’s advisable not to trade excessively.

Tax explanation

Profits from buying and selling gold savings accounts are considered property transaction income and must be included in the following year’s individual comprehensive income tax. Losses can be deducted from property transaction income, and if not fully deducted in the current year, they can be carried forward for three years.

Recommended banks

Banks such as Bank of Taiwan, E.SUN Bank, and E.SUN Bank offer gold savings accounts, each with its features.

Suitable for: low-cost long-term investors, low-frequency traders

3. Gold ETF Investment

Gold ETFs are “gold index funds.” As fund products, management fees are involved. Investors can choose Taiwan gold ETFs like 00635U or US-listed gold ETFs like GLD, IAU.

Cost structure

Taiwan gold ETFs include: management fee(1.15%/year) + transaction fee(0.15%) + trading tax(0.1%)

US gold ETFs:

• GLD: management fee(0.4%/year) + transaction fee(0~0.1%) + currency exchange(0.32%)

• IAU: management fee(0.25%/year) + transaction fee(0~0.1%) + currency exchange(0.32%)

Gold ETFs are traded directly with brokers, low investment threshold, high liquidity, but only long positions are possible—no short selling. Suitable for beginners and retail investors for long-term investment.

Purchase channels

Besides buying Taiwan ETFs through domestic brokers, if you have overseas brokerage accounts, you can buy US-listed gold ETFs. US products generally have lower fees and tracking errors but require opening US accounts and currency exchange.

Suitable for: low-cost long-term investors, beginners seeking convenient trading

( 4. Gold Futures Trading

Gold futures are contracts based on international gold prices. Profit or loss depends on the price difference at entry and exit. Futures contracts require delivery at expiration.

Trading features

Futures support “two-way trading,” long trading hours, and lower holding costs. Investors only need to pay a margin ratio to leverage trading gold, suitable for short-term trading and professional investors. Gold futures prices are linked 24/7 to international markets, making manipulation difficult.

Risk factors

Futures have expiration dates, so rollover costs are involved. Holding positions into delivery months results in forced liquidation. Leverage amplifies gains but also losses; proper capital management and risk awareness are essential.

Tax advantages

Since the tax on futures trading income has been suspended, only the futures transaction tax applies, at a very low rate)0.0000025( (25 per million).

Trading locations

In Taiwan, futures are traded through the Taiwan Futures Exchange, with shorter trading hours. Overseas futures brokers offer nearly 24/7 trading, allowing both long and short positions at any time, with better liquidity. Many overseas brokers provide Chinese interfaces and customer service, making operations more convenient.

Suitable for: short-term traders, swing investors, investors with sufficient capital

) 5. Gold CFD( Trading

If you have experience with derivatives trading, CFDs) are the fastest way to enter the gold market.

How CFDs work

CFDs track spot gold prices, supporting “two-way trading,” long and short positions, without holding physical gold or expiration limits—more flexible than futures. Profits come from the price difference between buy and sell contracts. Entry barriers are very low, and leverage options are flexible. Main costs are bid-ask spreads and overnight holding fees.

Trading gold CFDs is simpler than stocks; no need to choose stocks, just judge the gold price trend.

Tax explanation

Income earned from international gold trading is considered overseas income. If it exceeds TWD 1 million in a single year, it must be included in the individual basic income, subject to the minimum tax rate.

Comparison of futures and CFDs

Both are suitable for short-term trading but differ significantly:

• Futures have fixed minimum contract sizes; CFDs do not, so CFD margin requirements are lower
• Futures have fixed expiration dates; CFDs do not
• Futures require paying commissions and transaction taxes; CFDs do not
• Futures demand much higher capital than CFDs

Choosing brokers

CFD trading is global, with larger overseas markets; Taiwan currently has no legal CFD exchange. Most forex platforms offer gold CFDs. When choosing a broker, ensure it is regulated by reputable international financial authorities to avoid scams.

Suitable for: short-term traders, swing investors, investors with smaller capital

Why is gold investment still popular?

Multiple values of gold

Gold is a universally recognized store of value, with a global unified investment market. During market turmoil and financial crises, gold is widely regarded as a “safe haven” asset. Historically, gold has been used to hedge against US dollar depreciation and rising inflation.

Institutional investor consensus

Referred to as “smart money,” institutional investors often allocate gold in their portfolios. Although gold is more volatile than fixed-income products and does not offer fixed returns like savings or unlimited gains like stocks and futures, it provides a sense of security and confidence, helping to cope with market uncertainties and crises. Nearly all investment institutions recommend including gold in their portfolios, with a typical allocation of at least 10% of total assets.

Market turbulence and investment surges

Whenever inflation or market turbulence occurs, public enthusiasm for gold investment surges. Looking at historical trends, any major macroeconomic event involving systemic risk, geopolitical conflicts, or wars often triggers sharp gold price fluctuations. For example, after the Russia-Ukraine conflict erupted in February 2022, gold prices continued to rise, reaching as high as $2,069. Recently, international gold prices again broke records, surpassing $3,700.

Market mechanism features

Due to the large scale and long history of international gold trading, the market quickly reflects major systemic events, leading to rapid price surges and drops. As a result, investors use gold both as a short-term trading tool for “buy low, sell high” and as a hedge in their portfolios.

Summary: How to choose the right gold investment method for you

Based on different investment goals and risk tolerance:

• Long-term asset allocation: choose physical gold, gold savings accounts, or gold ETFs, focusing on preservation and long-term appreciation
• Short-term trading: choose gold futures or gold CFDs, leveraging technical analysis and leverage to amplify gains, but with risk management skills
• Small-scale testing: gold CFDs are most suitable, with the lowest entry barrier—starting with just a few tens of dollars
• Hedging: physical gold and gold savings accounts are more suitable, with relatively controllable risks

Regardless of the method chosen, the key is to make decisions based on your financial situation, investment experience, and risk preferences, avoiding blind followings.