Recently, more and more people are asking about how to invest in gold. Indeed, geopolitical tensions and inflation topics have been trending, and the appeal of gold as a safe-haven asset has been rising. However, I’ve noticed that many people don’t actually know where to buy physical gold at the best price, nor are they clear about alternatives beyond gold bars that might be more flexible.

To be honest, simply buying physical gold bars is not the most efficient investment method. Gold bars themselves do not generate interest, and you have to pay for storage, which can feel somewhat “difficult to buy and hard to sell.” But if you just want to hold tangible gold in your hands, Taiwan Bank is a good choice. They source gold bars from Swiss banks with guaranteed quality, starting from 100 grams, and their fees are relatively transparent. For smaller units, jewelry stores are another option, but you need to pay attention to purity and bargaining.

That said, there are actually several more efficient ways to invest in gold. Gold savings accounts are like paper gold, eliminating the hassle of storage. Taiwan Bank, E.SUN, and E.SUN Bank all offer these, and you can buy with TWD or foreign currencies. The handling fees are moderate. This method is suitable for those who want to hold long-term but don’t want to deal with physical gold.

If you want more flexible trading options, gold ETFs are a good entry point. They are easy to buy and sell, with low barriers to entry. Both Taiwan stocks and US stocks have gold ETFs available, but you should be aware of management fees. However, ETFs can only go long and cannot short, making them suitable for retail investors planning long-term positions.

For short-term profit from price swings, futures and CFDs are the way to go. Futures allow two-way trading and operate 24/7, with leverage amplifying capital efficiency, but you need to be mindful of capital management because losses can also be magnified. CFDs have the advantage of lower barriers, higher flexibility, and no expiration date, making them more friendly for small investors. I see many traders using CFDs to trade gold—they only need a small margin to get started, which is very attractive for beginners.

Regarding where to buy physical gold, my advice depends on your investment goals. If it’s purely for preservation and inflation hedging, physical gold or gold savings accounts are sufficient. But if you want to profit from price differences, short-term trading in gold futures or CFDs is more efficient.

Gold prices have indeed performed well over the past few years, experiencing several rebounds since 2022. This is mainly supported by expectations of Fed rate cuts, rising geopolitical risks, and continuous large-scale gold purchases by central banks worldwide. However, remember that short-term trends are hard to predict; the key is to find good entry points and not wait until prices rise to start buying. In the long run, gold as a hedge in an investment portfolio is generally recommended to be at least 10% of the total, which is a consensus among many institutional investors.

No matter which method you choose, the most important thing is to understand your risk tolerance and investment time horizon. Physical gold suits conservative investors, gold savings accounts and ETFs are suitable for those with moderate risk preferences, and futures and CFDs are options for investors with some trading experience and risk awareness.