Comprehensive Analysis of Gold Investment Channels: Comparing the Pros and Cons of 5 Methods, How to Choose Gold Bars in the US?

Geopolitical turbulence and persistent inflation pressures have once again made gold a safe-haven focus. Besides traditional physical gold, modern investors have multiple options. This article outlines five major gold investment channels, analyzing their respective risks, costs, and returns to help you find the most suitable method based on your investment goals and risk tolerance.

Is investing in gold worth it now? Look at the trend before deciding

Gold prices have experienced dramatic fluctuations over the past few years. Between 2022-2023, the high broke through $2000, while the low fell below $1700, mainly influenced by geopolitical conflicts and Federal Reserve rate hikes.

Entering 2024, multiple factors are driving gold prices to new highs: rising expectations of US rate cuts, increased global central bank gold purchases, escalating geopolitical risks, and more. Data shows that global central banks’ net gold purchases in 2024 will reach 1,045 tons, exceeding 1,000 tons for three consecutive years, directly supporting the breakout of gold prices above $2700.

However, it is important to note that gold prices are driven by multiple factors, making short-term trends difficult to predict accurately. The key to long-term gold holding is not predicting price movements but finding the right entry point.

Depending on different investment goals, strategies should vary:

• Preservation and appreciation: Suitable for buying physical gold, gold savings books, or gold ETFs, focusing on choosing good entry points and holding patiently.
• Trading for profit: If you can bear risks and have trading analysis skills, gold futures and gold CFDs can generate higher returns through spread trading. This requires mastering market analysis and understanding long and short operations.

Comparison of five major gold investment methods

How to choose the most cost-effective gold investment? It depends on your investment cycle and risk appetite.

Physical Gold: Traditional safe haven

Physical gold includes bars, ingots, and commemorative coins. Usually purchased at banks or jewelry stores, but gold coins and commemorative coins involve processing fees, and selling may incur wear-and-tear costs, making them less suitable for investment. It is recommended to buy gold bars directly.

The core issue with physical gold is: it does not generate interest, requires dedicated storage (high safe deposit box fees), and has poor liquidity (often “easy to buy, hard to sell”). However, holding tangible assets provides strong psychological security, making it suitable for long-term hedging and collection.

Advantages: Low risk, simple trading, reputable brands
Disadvantages: High unit price, storage needs, multiple fees, poor liquidity

How to buy gold bars in the US, Hong Kong, etc.?

United States: Major banks like JPMorgan Chase, Bank of America, Wells Fargo offer gold investment services. The US gold bar market is mature with many options.

Hong Kong: HSBC(HSBC), Hang Seng Bank, and others offer gold purchases. Note the currency exchange costs for HKD.

Small grams gold: For purchases of just a few grams, jewelry stores are more suitable than banks. Regardless of location, purity is the only important indicator, priced by weight. Do not be fooled by brands or appearance. Beware of counterfeit gold bars, which often carry heavy premiums.

Gold Savings Book: A hassle-free paper gold solution

Gold savings (paper gold) allows you to invest in gold without holding physical assets. Banks store your gold and record it via a savings book. Most large banks support this, and buying/selling only requires a card.

Currently, there are three main methods: buying with local currency, foreign currency, or dual-currency gold savings. Each has different fees. Using local currency involves exchange rate risk; foreign currency involves currency conversion fees. Overall costs are moderate, but frequent trading can accumulate costs; low-frequency operation is recommended.

Advantages: Lower risk, small transactions possible, can be exchanged for physical gold
Disadvantages: Limited trading hours, only long positions, high currency exchange costs

Gold ETF: A low-cost long-term investment tool

Gold ETFs track the price of gold via index funds. Domestic options include the Malaysia Gold ETF(0828EA), and international options include US-listed GLD and IAU.

Cost structure:

• Domestic ETF(0828EA): Management fee 1%/year + transaction fee 0.1-0.5% + currency exchange 0.3-1%
• US GLD: Management fee 0.4%/year + transaction fee 0-0.1% + currency exchange 0.32%
• US IAU: Management fee 0.25%/year + transaction fee 0-0.1% + currency exchange 0.32%

ETFs are highly liquid, with low entry barriers, but only support long positions (no short selling). Suitable for beginners and long-term investors.

Advantages: Easy to buy/sell, low threshold, good liquidity
Disadvantages: Management fees apply, trading hours limited

Gold futures: Professional trading tools

Gold futures track international gold prices and allow two-way trading (long and short). They leverage margin to amplify gains. However, futures have expiration dates, requiring delivery or rollover, which incurs additional costs.

Advantages: T+0 trading 24/7, two-way operation, high capital efficiency
Risks: Leverage amplifies losses, delivery and rollover costs, capital gains tax

Global gold futures trading locations

United States: CME( is the largest futures exchange globally, with COMEX gold futures) code GC( being the most popular, offering high liquidity, tight spreads, and nearly 24-hour trading.

Hong Kong: HKEX) offers USD-denominated gold futures with decent liquidity. Trading hours are 09:15-12:00, 13:00-16:30, and 17:15-23:30.

Overseas brokers: Most offer 24-hour gold futures trading, providing more flexible timing and better liquidity than local exchanges.

Gold CFDs: Low-threshold two-way trading

CFD( tracking spot gold allows two-way trading without physical delivery, no expiration date, and more flexibility than futures. The entry threshold is very low, leverage is adjustable, and fees mainly come from spreads and overnight fees.

Advantages over futures:

• No minimum contract size, lower margin requirements
• No expiration date, can hold indefinitely
• No trading commissions or taxes
• Lower capital requirements

Advantages: Small entry amounts, two-way operation, 24/7 trading, quick account opening
Disadvantages: High leverage risk, requires trading skills

) Global gold CFD platforms

Hong Kong: CFD markets are well-developed; providers include IG Markets, Plus500, Saxo Capital Markets, Futu Securities, etc.

United States: Due to strict SEC and CFTC regulations, most US brokers do not offer CFDs.

International platforms: Many overseas CFD providers are large-scale, but ensure they are regulated by reputable international financial authorities to avoid scams.

Summary: How to choose the most suitable gold investment method

Investment tips:

• For preservation and appreciation, focus on good entry points and avoid chasing prices.
• For trading profits, master technical analysis and risk management; leverage can magnify losses.
• Beginners should start with small amounts to gain experience before increasing investments.
• Regardless of method, beware of unregulated platforms and ensure your broker is properly licensed.

There is no absolute best gold investment; only the one that suits you best. Make decisions based on your capital size, investment horizon, and risk tolerance—this is the wisest approach.