Gold Bar and Gold Investment Complete Guide: In-Depth Analysis of 5 Investment Channels

Current Investment Timing for Gold

Geopolitical tensions are escalating, and inflationary pressures persist, bringing renewed attention to gold as a traditional safe-haven asset. Many institutional investors are allocating gold in their portfolios, typically recommending a minimum allocation of at least 10% of the total investment amount.

How has gold performed in recent years? According to market data:

• From 2022 to 2023, gold prices experienced significant volatility, with highs surpassing $2000 and lows dropping below $1700, mainly influenced by geopolitical conflicts and Federal Reserve rate hikes.
• In 2024, gold prices continuously hit new record highs, driven by expectations of US rate cuts, escalating geopolitical risks, and record-breaking central bank gold purchases worldwide. Global central banks net bought 1,045 tons of gold in 2024 (over three consecutive years of net purchases exceeding 1,000 tons), directly supporting gold prices to break through $2,700.
• As of September 2025, gold prices have surpassed $3,700, with Goldman Sachs forecasting an average price target of $4,000 per ounce by mid-2026.

However, it is important to note that gold prices are affected by multiple factors, making short-term trends difficult to predict. The key to long-term gold investment is timing the entry correctly, rather than waiting for prices to rise before investing.

Why Is Gold Investment Popular?

◆ Gold is a classic store of value

◆ It offers global market liquidity

◆ Acts as a “safe harbor” during turbulent times

◆ A hedge against US dollar depreciation and rising inflation

Gold does not provide fixed income like savings accounts, nor does it offer unlimited returns like stocks, but it can give investors a sense of security and help cope with market uncertainties and financial crises. Whenever inflation expectations rise or market volatility intensifies, the enthusiasm for investing in gold tends to increase. Historically, major economic shifts, geopolitical conflicts, or wars often cause gold prices to fluctuate sharply. For example, after the outbreak of the Russia-Ukraine war in February 2022, gold prices surged to $2,069.

Gold Investment Strategies

Depending on investment goals, two main strategies can be adopted:

Strategy 1: Long-term Holding for Appreciation

If the goal is preservation and appreciation, focus on buying at reasonable prices. Options include physical gold, gold savings accounts, or gold ETFs—low-cost solutions.

Strategy 2: Short-term Swing Trading

If seeking higher profits and able to bear market risks, short-term trading through gold futures and gold CFDs can be employed, profiting from price differences. This requires strong market analysis skills for quick entry and exit.

Comprehensive Comparison of 5 Gold Buying and Selling Methods

In-depth Analysis of 5 Gold Investment Methods

1. Physical Gold Investment

Physical gold includes bars, ingots, jewelry, and commemorative coins, typically purchased at banks or jewelry stores. It is recommended to buy gold bars directly; be cautious with jewelry and coins—these often include manufacturing costs in their prices, and selling involves fees and wear-and-tear costs, making them less cost-effective.

Limitations of Physical Gold Investment:

Physical gold is not interest-bearing; it incurs storage costs (safety deposit boxes, insurance), has lower liquidity, and can be difficult to sell quickly. However, because it is tangible, many investors buy for long-term preservation and collection, maintaining its value as a safe-haven asset.

Tax reminder: Transactions exceeding NTD 50,000 must be reported as personal occasional trade income, calculated at a 6% profit rate, and included in the following year’s comprehensive income tax.

Suitable for: Collecting, hedging, preservation

Advantages: Low risk, straightforward buying and selling

Disadvantages: High unit price, requires secure storage, additional costs

Where to buy cost-effectively?

Taiwan Bank is a reliable choice and the only bank offering physical gold trading nationwide. Bank gold bars are simply processed, with lower fees and trusted brands. Taiwan Bank’s gold bars mainly come from Swiss bank (UBS AG), with minimum sales weight of 100 grams, and options for 250g, 500g, and 1kg.

For small quantities, consider jewelry stores or pawnshops. Regardless of where you buy, purity is key, as prices are based on weight. Avoid counterfeit gold bars (highly negotiable) and do not be fooled by appearance or brand. Also, consider security and related costs for storing gold bars.

2. Gold Savings Account Investment

Gold savings accounts, also called “paper gold,” allow investors to buy gold with the bank providing a savings passbook for safekeeping, eliminating the need to hold physical gold. Buying and selling are conducted via the bank passbook, offering much higher convenience than physical gold. Major banks such as Taiwan Bank, CTBC Bank, First Commercial Bank, and Hua Nan Bank offer this service, with options to exchange for physical gold.

Three purchase methods:

• TWD purchase
• Foreign currency purchase
• Dual-currency gold savings account (launched by Taiwan Bank in April 2023, allowing investors to benefit from both TWD and foreign currency exchange rate movements and gold price changes).

Fees vary by method. TWD purchases involve exchange rate risk (since international gold prices are USD-based). Foreign currency purchases involve currency exchange costs. Overall, both methods have similar costs, representing a moderate friction cost. Each transaction incurs fees, and exchange costs are unpredictable; frequent trading can accumulate high costs. It is advisable to avoid overly frequent transactions.

Tax reminder: Profits from gold savings accounts are considered property transaction income and must be reported in the following year’s comprehensive income tax. Gains or losses are recognized; losses can be deducted from income, and if not fully deducted in the current year, can be carried forward for three years.

Suitable for: Low-cost long-term investment, low-frequency trading

Advantages: Lower risk, small transactions supported, exchange for physical gold available

Disadvantages: Limited trading hours, one-way trading (buy low, sell high), currency exchange costs

Recommended banks for gold savings accounts:

Taiwan Bank, E.SUN Bank, E.SUN Bank, etc., all offer good gold savings account services.

3. Gold ETF Investment

Gold ETFs are “gold index funds,” which are managed funds requiring management fees. Investors can choose Taiwan gold ETFs (e.g., 00635U) or overseas gold ETFs (e.g., US-listed GLD, IAU).

Cost structure comparison:

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

Gold ETFs are traded directly with brokers, offering lower investment thresholds and high liquidity, but only support long positions (no short selling). Suitable for beginners and retail investors, especially for long-term allocation.

Suitable for: Low-cost long-term investment, low-frequency trading

Advantages: Easy to buy/sell, low investment threshold

Disadvantages: Need to consider management fees, trading hours limitations

How to buy Gold ETFs:

Via domestic brokers for Taiwan ETFs, or open overseas broker accounts to buy US-listed ETFs. US ETFs generally have lower costs and tracking errors but require opening US accounts and currency exchange.

4. Gold Futures Investment

Gold futures are contracts based on international gold prices, where profit or loss depends on the price difference between entry and exit points, with delivery upon contract expiry.

Advantages of futures:

• Support for both long and short positions
• Long trading hours, lower holding costs
• Leverage via margin trading
• 24-hour global price linkage, less manipulation
• Suitable for short-term trading and professional investors

Risks of futures:

All futures have expiry dates, involving costs for rolling over contracts. Positions not closed before expiry are forcibly settled. Leverage amplifies both gains and losses; proper risk management is essential.

Tax reminder: Gold futures are not subject to transaction tax; only a futures transaction tax of 0.0000025% applies.

Trading hours comparison:

Taiwan Futures Exchange has shorter trading hours, but overseas futures brokers offer nearly 24-hour trading, enabling continuous long/short operations with higher liquidity.

Suitable for: Short-term trading, swing trading, large investment amounts

Advantages: T+0 trading 24/7, supports long and short positions, leverage enhances capital efficiency

Disadvantages: High leverage risk, requires delivery and rollover management

5. Gold CFD ((CFD)) Investment

CFD (Contract for Difference) tracking spot gold prices is a highly flexible contract, supporting both long and short positions without physical ownership or expiry—more flexible than futures.

Features of CFDs:

Profit depends on the price difference of the contract; entry barriers are low, with flexible leverage options. Fees mainly come from spreads and overnight financing costs. Trading gold CFDs is simpler than stock trading—no need to select stocks, just analyze gold price trends.

Tax reminder: Income from international gold trading is considered overseas income. If annual income exceeds NTD 1 million, it must be included in personal basic income tax, subject to minimum tax.

Differences between futures and CFDs:

• CFDs have no fixed minimum contract size; futures do, so CFDs require lower margin
• CFDs have no expiry date; futures do
• CFDs incur no transaction fees or futures transaction tax; futures do
• CFDs require significantly less capital than futures

Suitable for: Short-term trading, swing trading, small investment amounts

Advantages: Low minimum trading size, supports long and short positions, T+0 trading 24/7, easy account opening

Disadvantages: High leverage risk, requires trading skills

Choosing CFD brokers:

Most CFD markets are overseas; Taiwan currently has no licensed CFD exchanges. Many forex platforms offer gold CFD services. When selecting a broker, ensure it is regulated by reputable international financial authorities to avoid scams.

Investment Method Recommendations

Where is the most cost-effective place to buy gold? It depends on your investment strategy and purpose.

Considerations for buying physical gold:

If investing in physical gold, it requires substantial capital, mainly for inflation hedging and preservation. For large quantities, buy directly from banks for safety and reliability, but prepare for storage costs. For small quantities, go to jewelry stores, paying attention to purity and choosing the best price.

Alternatives to physical gold:

If not purchasing physical gold, options include gold savings accounts, gold ETFs, gold futures, or gold CFDs—these tools facilitate trading and profit from price differences. Note that long-term returns on gold are generally modest; tools like gold futures and CFDs are better suited for short-term trading.

Investors should choose the most suitable channels based on their investment style: low-cost options for long-term preservation, derivatives for short-term gains.