Gold Investment Newbie Guide: A Thorough Comparison of 5 Investment Methods

Gold has been known as a popular investment vehicle for many years. This article compares five representative methods of investing in gold and explains the characteristics of each.

1. Physical Gold

• Features: Low risk but high price, suitable for long-term holding
• Market Trends: Gold prices in 2025 are expected to reach record highs, with increasing demand as a safe asset.
• Risk Assessment: Functions as an inflation hedge, but attention is needed regarding storage costs and low liquidity.
• Suitable Investors: For conservative investors who prioritize long-term asset preservation.

2. Gold Accumulation Account

• Features: Investment possible from a small amount, pay attention to exchange costs
• Market Trends: The convenience has improved due to the spread of online banking.
• Risk Assessment: There is credit risk with banks, but it is easier to manage than physical gold.
• Suitable for Investors: Suitable for investors who wish to make regular small investments.

3. Gold ETF

• Features: Low investment barrier, suitable for long-term investment
• Market Trends: The gold ETF market is expected to record the largest inflow of funds in 2025.
• Risk Assessment: Since it is traded through an exchange, it has high liquidity.
• Suitable Investors: For investors who want to invest in gold through the stock market.

4. Gold Futures

• Features: Bidirectional trading is possible, but it carries high risks.
• Market Trends: Due to increased volatility, trading volumes are on the rise.
• Risk Assessment: There is a risk of significant losses due to leverage effects.
• Suitable investors: For experienced investors with a high risk tolerance

5. Gold CFD ( cash settlement trading )

• Features: Low entry barriers and high flexibility, suitable for short-term trading
• Market Trends: Due to increased regulations, some countries have imposed restrictions on trading.
• Risk Assessment: There is an amplification effect due to leverage, and risk management is important.
• Suitable for Investors: For active short-term traders

Investment Considerations

1. Fully understand the product characteristics and risks.
2. Choose a regulated and reliable platform
3. Start small and gain experience
4. Manage leverage appropriately
5. Implement thorough risk management

Gold investment is popular, but it is also characterized by significant price fluctuations. Before starting to invest, it is important to thoroughly understand the characteristics and risks of each investment method and to choose a strategy that aligns with your investment objectives and risk tolerance.

Mainstream CEX and other trading platforms offer many of these gold investment products. For beginners, it is recommended to start with a small amount and gradually deepen their investment skills and knowledge.