Recently, gold prices have surged to over $3,700 USD, and many people around me have started asking whether I want to buy gold to preserve value. Honestly, there are really many ways to invest in gold—it's not just one option like going to a jewelry shop to buy gold bars. I’ve personally tried several methods myself.

First, let’s talk about physical gold bars. Many people’s first reaction is to buy from a jewelry store or a bank, but I think if you’re buying in large quantities, it’s more cost-effective to go directly to Taiwan Bank. Taiwan Bank is the only bank in Taiwan that offers physical gold buying and selling, with gold bars starting from 100 grams. There aren’t excessive processing fees, and the brand is also backed by trust. For smaller amounts, you can consider jewelry stores, but the key is to check purity. Don’t be misled by appearance or branding when you buy—purity is the fundamental factor that affects the price. To be honest, the biggest hassle with buying physical gold is that you have to store it yourself, and you also need to factor in costs like a safe deposit box. When you sell, it may not be easy to liquidate quickly either.

If you don’t want physical gold bars, I recommend a gold savings account, which is what people often call “paper gold.” The bank stores it for you, and buying and selling are handled through the savings passbook/account—much more convenient. Taiwan Bank, CTBC Bank, and First Bank all provide this service, and you can choose to buy using TWD or foreign currencies. In 2023, they even launched dual-currency gold savings accounts. However, you should note that every buy/sell transaction comes with a fee, and if you trade frequently, the costs can add up very quickly. This approach is best suited for long-term holding, not for constantly entering and exiting.

If you want something more flexible, gold ETFs are also a good option. In Taiwan, there’s 00635U; in the U.S., GLD and IAU. They’re easy to buy and sell, with good liquidity and a low investment threshold. The downside is that you can only profit when prices rise—you can’t short-sell. You also have to pay an annual management fee, but for beginners and retail investors, they’re still quite friendly.

If we’re talking about the methods that can truly profit from the price spread, then it comes down to gold futures and gold CFDs. Both of these tools allow two-way trading, meaning you can have opportunities to profit whether the gold price goes up or down. Futures trade 24 hours a day and you can use leverage to amplify returns, but the downside is that there’s an expiration date, so you need to roll over positions, and the capital requirements are relatively high. CFDs are even more flexible: there’s no expiration date, and the minimum margin requirement is much lower. Some platforms allow you to start trading with only around ten-something to twenty USD.

Lately, I’ve been trying out CFDs myself, because the entry barrier really is low. Platforms like Mitrade, which have international regulatory licenses, offer fairly competitive trading conditions. Leverage can be freely selected, and they also support deposits and withdrawals in TWD. However, leverage is a double-edged sword. It can amplify profits when you win, but when you lose, your losses will also be amplified—so for beginners, it’s best not to use leverage at first, and wait until you have enough experience.

Coming back to the question of “where is the most cost-effective place to buy gold bars,” honestly it depends on your investment goal. If you simply want to hedge and preserve value, physical gold bars or a gold savings account are enough—safe and stable. But if you want to profit from short-term trading by capturing price spreads, futures and CFDs are the right choices. In recent years, central banks around the world have been aggressively buying gold, and geopolitical risks are still there, so gold prices do have support. Just don’t chase after the high price—finding a good entry point is the key, especially when you’re doing short-term trading.