The 2025 Golden Investment Five Major Channels Revealed: Choosing the Right Method for Effective Returns

Has the Gold Price Broken New Highs? Is Now a Good Time to Invest in Gold?

Gold prices have experienced an incredible rally over the past three years. Between 2022 and 2023, prices fluctuated significantly between $1,700 and $2,000 per ounce, then in 2024, they broke through historical highs. As of September 2025, international gold prices have surged past $3,700 per ounce, with market research agencies predicting it could reach $4,000 by mid-2026.

The main factors driving this rally include: rising expectations of Federal Reserve rate cuts, escalating geopolitical risks, and record-high central bank gold purchases globally. In 2024, net gold purchases by central banks worldwide reached 1,045 tons, exceeding 1,000 tons for three consecutive years, directly supporting the upward movement of gold prices.

However, it is important to note that gold prices are influenced by multiple factors, making short-term trends difficult to predict. The key is to find the right entry point rather than chasing the high.

How to Choose the Method of Buying and Selling Gold? The Key Is Your Investment Goal

Depending on your investment purpose, gold investment can be divided into two main strategies:

Long-term preservation strategy: Suitable for investors looking to hedge against inflation and asset risk, consider purchasing physical gold, gold savings accounts, or gold ETFs. These methods carry relatively low risk but also offer limited returns.

Short-term trading strategy: Suitable for investors who can tolerate market risks and aim to profit from price differences. Gold futures and gold CFDs(are the main tools, requiring chart analysis skills and capital management awareness.

Cost and Risk Comparison of Five Gold Trading Methods

Option 1: Physical Gold—A Traditional Hedge, but Limited Liquidity

Buying gold bars, ingots, or commemorative coins is the most straightforward way to invest in gold. Taiwan Bank is the only bank offering physical gold trading, with specifications ranging from 100 grams to 1 kilogram, with reputable brands and relatively low fees.

The core issue with physical gold is: high unit prices, the need for specialized storage (safety deposit boxes), and the liquidity dilemma of “easy to buy, hard to sell.” Additionally, physical gold is a non-interest-bearing asset, providing no income during holding.

Tax considerations: Sales of physical gold exceeding NTD 50,000 must be declared as personal occasional trading income, with a 6% profit rate included in the following year’s comprehensive income tax.

Suitable for: Conservative investors who want long-term collection and asset preservation.

Option 2: Gold Savings Account—The Convenient “Paper Gold” Option

Gold savings accounts)or(paper gold)allow investors to avoid holding physical gold, with banks acting as custodians. Many institutions, including Taiwan Bank, CTBC Bank, First Commercial Bank, and Hua Nan Bank, offer this service, with the option to exchange for physical gold.

There are three ways to purchase gold savings accounts: NT$ purchase(with exchange rate risk), foreign currency purchase(with currency exchange costs), and dual-currency gold savings accounts(tracking both NT$ and foreign currency trends). Regardless of the method, overall costs are considered moderate friction costs.

Be aware that frequent buying and selling can accumulate high exchange and handling fees, making it unsuitable for high-frequency trading.

Tax considerations: Gains from buying and selling are regarded as property transaction income and must be reported in the following year’s comprehensive income tax. Losses can be deducted for up to three years.

Suitable for: Office workers seeking low-cost, long-term investment with low trading frequency.

Option 3: Gold ETF—Low-Cost Entry, Accessible Fund Investment

Gold ETFs(and)gold index funds(allow retail investors to invest in gold via stock-like instruments, including domestic ETFs)00635U(and US-listed ETFs)GLD(, IAU), etc.

Different ETFs have different cost structures:

• Taiwan Gold ETF: management fee 1.15% + transaction fee 0.15% + trading tax 0.1%
• US Gold ETF(GLD): management fee 0.4% + transaction fee 0-0.1% + currency exchange 0.32%
• US Gold ETF(IAU): management fee 0.25% + transaction fee 0-0.1% + currency exchange 0.32%

Advantages of gold ETFs include low investment threshold, good liquidity, and easy trading, but they can only be bought long, not shorted, making them more suitable for conservative investors expecting long-term gold price appreciation.

Suitable for: Beginners seeking low-cost entry with low risk tolerance.

Option 4: Gold Futures—24/7 Two-way Trading, Ideal for Short-term Experts

Gold futures are based on international gold prices, with 24-hour global linkage, making them less susceptible to manipulation. The main features are two-way trading, low holding costs, and extended trading hours.

Investors deposit a certain margin to leverage trading gold. However, futures have clear disadvantages: contracts have expiration dates, positions are forcibly closed if not zeroed out, rollover costs apply, and leverage amplifies both gains and losses.

Overseas futures brokers offer nearly 24-hour trading, with much higher volume and liquidity than Taiwan Futures Exchange. Tax-wise, futures trading income tax has been suspended, with only a 0.025% transaction tax, making it relatively light.

Suitable for: Experienced traders capable of handling high risks.

Option 5: Gold CFD—Lowest Barrier Derivative Trading

CFD(tracks spot gold prices, without the need to hold physical gold or have expiration dates, offering more flexibility than futures. Profits come from the price difference between buy and sell contracts.

Core advantages of CFDs include: extremely low entry barriers)start trading with just $18(for 0.01 lots), flexible leverage, low fees mainly from spreads and overnight financing, T+0 trading all day, and both long and short positions. Compared to futures, CFDs have no fixed minimum contract size, with lower margin requirements.

Risk warning: Leverage magnifies both gains and losses. Beginners should avoid using leverage initially and gradually build trading experience.

According to tax law, income earned from international gold trading is considered overseas income, and if it exceeds NTD 1 million in a single year, it must be included in the personal basic income.

Suitable for: Investors wanting quick access to gold markets, with limited capital, and basic trading skills.

Futures vs. CFD: A Short-term Trader’s Choice

Both are suitable for short-term trading, but with clear differences:

• Contract size: Futures have fixed minimum sizes; CFDs are more flexible, allowing micro lots.
• Expiration date: Futures have expiration; CFDs do not, making CFDs more suitable for medium to long-term holdings.
• Trading costs: Futures involve commissions and transaction taxes; CFDs only have spreads.
• Capital requirements: Futures require larger capital; CFDs can be opened with very small amounts.

Why Are Institutional Investors Buying Gold?

Gold remains a fundamental safe-haven asset in investment portfolios. Institutional investors generally recommend allocating over 10% of total investments to gold because:

The true value of gold lies in providing psychological security and practical risk hedging. Unlike fixed deposits, gold fluctuates with the market; unlike stocks or futures, gold’s returns are not tied to the performance of a single company.

Whenever inflation rises, markets become turbulent, or geopolitical tensions escalate, gold becomes a safe harbor. After the Russia-Ukraine conflict in 2022, gold prices surged to $2,069; recent geopolitical tensions have again driven gold to new highs, breaking through $3,700.

Due to the large market size and long history, gold can experience rapid surges and drops. Therefore, investors can use gold both as a long-term asset allocation tool and as a short-term trading target for profit.

Choosing the Right Gold Investment Method Depends on Your Needs

• Want to preserve value and ensure asset safety? Choose physical gold or gold savings accounts.
• Want low-cost regular investment? Choose gold ETFs.
• Want short-term high-frequency trading? Choose futures or CFDs.
• Have limited funds but want quick entry? Choose gold CFDs.

Most importantly, do not be fooled by short-term price rallies and blindly chase highs. Regardless of the method chosen, it is essential to develop a clear investment plan, set stop-loss points, and manage risk properly. The success of gold investment lies not in predicting short-term prices but in understanding your investment goals and selecting suitable trading tools.

Currently, with gold prices at new highs and market volatility increasing, this is both a challenge and an opportunity. The key is to do your homework and choose the most suitable gold trading method for yourself.