Recently, a friend asked me where to buy gold investments, and I realized many people still don't really understand the channels for gold investing. In fact, besides traditional physical gold, there are now countless ways to invest in gold. I’ll organize my experience from these past few years.

Honestly, gold investment has become increasingly popular in recent years. Last year, gold prices soared to $5,600, an increase of over 60%, mainly due to expectations of interest rate cuts in the U.S., rising geopolitical risks, and global central banks buying gold aggressively. Central banks’ net gold purchases in 2024 reached 1,045 tons, exceeding 1,000 tons for three consecutive years, directly pushing gold prices upward. However, the factors influencing gold prices are very complex, and short-term trends are hard to predict, so timing the entry is really crucial.

Whether to invest in gold depends on your goals. If you want to hold long-term and preserve value, you need to find a good entry point and not wait until prices have already risen. If you can tolerate risks and want to make quick profits, short-term trading is more suitable for you.

I personally categorize five main ways to invest in gold, each with different risks and costs.

The first is buying physical gold, like gold bars or coins. The advantage is low risk and a sense of security, but the drawbacks are obvious—high unit prices, storage needs, and numerous handling fees. If you're in Malaysia, banks like Maybank, CIMB, and Public Bank offer these, often cheaper than jewelry stores. In the U.S., JPMorgan and Bank of America provide such services. In Hong Kong, HSBC and Hang Seng Bank are options. But note, buying and selling physical gold costs about 1% to 5%, and “easy to buy, hard to sell” is a real issue.

The second is gold deposit slips, also called paper gold. Banks hold your gold for you, so you don’t need to store it yourself, which is more convenient. Many banks in Malaysia offer this service, allowing purchases in Ringgit or foreign currencies, though currency exchange costs can eat into profits. The benefit is relatively moderate costs, but the downside is you can only buy low and sell high, and frequent trading can accumulate fees.

The third is gold ETFs, or gold index funds. This investment has the lowest threshold, good liquidity, and is suitable for beginners and small investors. In Malaysia, there's 0828EA; in the U.S., GLD and IAU. But be aware, management fees will reduce returns, and you can only go long, not short.

The fourth is gold futures. This is suitable for experienced short-term traders, allowing two-way trading with leverage to amplify gains. The downside is futures have expiration dates, requiring rollover, and leverage carries high risks. The CME’s COMEX gold futures are the most liquid, traded almost 24 hours a day.

The fifth is gold CFDs (Contracts for Difference). This has the lowest entry barrier, with just 0.01 lots needed to open a position, and flexible leverage. You don’t need to physically hold gold, and there’s no expiration date, making it more flexible than futures. Many regulated platforms overseas offer this service, like IG Markets and Plus500, which are quite reputable.

Honestly, choosing a method really depends on your investment style. For long-term preservation, buy physical gold or ETFs. For short-term profit, consider futures or CFDs. I personally treat gold as part of my asset allocation—some long-term holdings, plus some medium- and short-term swings. The key is to understand how much risk you can tolerate and not get blinded by high leverage.