## Want to invest in gold but don't know where to start? 5 Major Entry Methods to Help You Clarify

Watching the unstable international situation and ongoing inflation, are you also thinking about jumping into the gold market to grab a share? But the problem is—there are so many ways to buy gold, which entry point should you choose? Today, we'll help you sort out five ways to invest in gold, so you can select the most suitable method based on your risk tolerance and capital scale.

### Is it still worth entering the market to buy gold now?

Let's look at the market trends over the past two years. Since 2024, gold prices have soared, rebounding from the anticipation of Fed rate cuts, coupled with rising geopolitical risks and global central banks' frantic gold purchases (net gold purchases reached 1,045 tons last year, exceeding 1,000 tons for three consecutive years), pushing gold prices above $2,700 per ounce. By September 2025, prices had skyrocketed past $3,700, and Goldman Sachs even forecasted a surge to $4,000 per ounce by mid-2026.

But here’s a reminder—**the factors influencing gold prices are very complex, and short-term trends are unpredictable**. So whether you're aiming for long-term appreciation or short-term trading profits, the key is to find good entry points and not chase after the price after it has already risen.

### Comparing Gold Purchase Methods: Which is the Most Cost-Effective?

Based on investment goals, there are two paths:

**Long-term stable investment?** Recommended options are physical gold, gold savings accounts, or gold ETFs, which have relatively controlled risks.

**Want to make a quick profit?** Gold futures and gold CFDs are your tools, but you need to have a certain market sense and risk awareness.

| Investment Method | Entry Threshold | Trading Hours | Transaction Costs | Liquidity | Leverage |
|---------------------|-------------------|-----------------|-------------------|-----------|----------|
| Physical Gold | Moderate | Bank/Goldsmiths' operating hours | 1%~5% | Average | None |
| Gold Savings Account| Moderate | Bank operating hours | About 1% | Average | None |
| Gold ETF | Low | Intraday trading hours | About 0.25% | Good | None |
| Gold Futures | Higher | 24 hours | About 0.1% | Excellent | Up to 20x |
| Gold CFD | Low | 24 hours | About 0.04% | Excellent | Adjustable |

### Physical Gold: Traditional Hedge, but Costs Need Careful Calculation

If your goal is to hold tangible, visible assets, physical gold bars are the first choice. But honestly, **physical gold doesn’t generate income and requires extra costs for storage**, plus transaction fees and wear-and-tear costs during buying and selling, making the investment costs not cheap.

Taiwanese banks are the best options for purchasing gold bars, with guaranteed quality, starting from 100 grams, without excessive processing fees. For smaller units, jewelry stores are also fine, but remember to check purity and avoid being fooled by fancy designs.

**Suitable for:** Asset allocation, long-term preservation, and hedging for peace of mind

### Gold Savings Account: The Most Balanced Choice

Want to invest in gold but not hold physical bars? A gold savings account (paper gold) is the answer. Open an account, and all transactions are recorded on the account statement. When you want to cash out, you can exchange it for physical gold bars, combining convenience and flexibility.

Currently, banks like Taiwan Bank, E.SUN, and Yuanta offer this service. Be aware that buying with TWD involves exchange rate risk, and buying with foreign currency incurs currency conversion costs. **Regardless of the method, transaction costs are moderate, so frequent trading is not recommended.**

**Suitable for:** Low-cost entry, not holding physical assets, planning for medium to long-term holding

### Gold ETF: Friendly Entry Ticket for Small Investors

Gold ETFs are securities that track gold prices. In Taiwan, there's 00635U; in the US, GLD and IAU. The advantages are **low barriers, good liquidity, and easy trading**. The downside is that they only allow long positions, have management fees, and trading hours are limited.

Management fees vary by fund: Taiwan ETF annual fee is about 1.15%, US ETFs range from 0.25% to 0.4%, plus trading commissions. Overall, costs are not too high.

**Suitable for:** Small investors, long-term dollar-cost averaging, those who prefer not to worry about frequent trading

### Gold Futures: The Main Arena for Short-term Traders

Want to profit from price differences quickly? Gold futures trade 24/7, allowing both long and short positions, with leverage amplifying your capital efficiency. But **futures have expiration dates, and you face rollover costs and forced liquidation risks**, and leverage also magnifies losses.

However, futures have very low tax burdens (almost negligible), with transaction tax only 0.025%, making it more cost-effective than other methods. Recommended for experienced traders.

**Suitable for:** Professional investors, short-term traders, those with sufficient capital

### Gold CFD: The Most Flexible Derivative Tool

CFDs track the spot gold price. Compared to futures, **they have no expiration date, no fixed contract size, and more flexible leverage options**. Entry is very easy; some platforms require only a few dozen USD to open an account.

The advantage of CFDs is that you don’t need to pick stocks—just judge the gold price trend, which is straightforward. The downside is high leverage risk, and profits exceeding NT$1 million are subject to minimum tax regulations.

**Suitable for:** Small-scale testing, seeking flexibility, investors with basic trading skills

### How to Choose? It Depends on What You Want to Earn

**Hedging and preservation?** Do thorough research on gold purchasing, allocate physical gold bars or gold savings accounts, and slowly appreciate over 10–20 years.

**Want to profit from price swings?** Gold futures and CFDs are more efficient tools, with low transaction costs, flexible timing, and large leverage. Choose based on your capital and risk tolerance.

In short, **no matter which method you choose, finding your own rhythm is most important—don’t chase the market, be proactive.**

### Why Is There Always Someone Buying Gold?

Geopolitical conflicts, rising inflation, US dollar depreciation… Whenever economic uncertainty increases, gold becomes a safe haven in investment portfolios. Institutional investors often recommend allocating at least 10% of assets to gold because, despite its volatility and lack of fixed income, it provides psychological stability.

When the Russia-Ukraine war broke out in 2022, gold prices surged to $2,069. Recently, they broke new highs past $3,700. **Whenever major systemic risks appear, gold prices tend to fluctuate sharply, making gold a dual-purpose tool for short-term trading and hedging.**

Now, it’s time to start thinking—what is your gold purchase plan?