How to invest in precious metals
There are multiple ways to gain exposure to gold, silver and platinum, each with its own risk profile, cost structure and complexity. This guide compares all options so you can choose the one that best suits your needs.
Quick comparison
Overview of the main precious metals investment methods.
| Method | Custody | Liquidity | Cost | Risk | Ideal for |
|---|---|---|---|---|---|
| Physical gold at home | Self | Low | Low | High | Maximum privacy |
| Bank safe deposit box | Bank | Low | Medium | Medium | Delegated security |
| Swiss vault | Third party (Switzerland) | Medium | Medium | Low | Jurisdictional diversification |
| Physically-backed ETC | Issuer (vault) | High | Low | Low | Long-term investors |
| Metal ETFs | Fund manager | Very high | Very low | Low | Trading and diversified portfolios |
| Futures and CFDs | Broker | Very high | Variable | Very high | Expert traders |
Detailed analysis by method
Pros, cons, accessibility level and estimated costs for each option.
Physical gold at home
BeginnerBuy bars, investment coins (Krugerrand, Maple Leaf, Philharmonic) or historic coins and store them in a secure location at your property.
Advantages
- Full control and immediate access
- No counterparty risk
- Maximum privacy
- No reliance on intermediaries
Disadvantages
- Risk of theft or loss
- Home insurance cost
- Difficult to liquidate quickly
- Higher buy/sell spreads
Estimated cost: €0 (uninsured) — €100-300/year (with home insurance)
Bank safe deposit box
BeginnerStore physical gold in a rented safe deposit box at a bank. The bank does not know the contents of the box.
Advantages
- Higher security than at home
- Protection against theft and disasters
- No counterparty risk on the metal
- Privacy of contents
Disadvantages
- Annual rental cost (€50-500)
- Access limited to banking hours
- Bank can terminate the contract
- Not covered by deposit guarantee fund
Estimated cost: €50-500/year depending on size
Swiss or offshore vault
IntermediateServices like BullionVault, GoldRepublic or PAMP allow you to buy allocated gold and store it in high-security vaults outside your country of residence.
Advantages
- Maximum security (professional vaults)
- Jurisdictional diversification
- Allocated and audited gold
- 24/7 online liquidity
Disadvantages
- Custody cost (0.10-0.50%/year)
- Provider dependency
- Possible international tax implications
- No direct physical access
Estimated cost: 0.10% — 0.50% per year on custodied value
Physically-backed ETC
BeginnerExchange-Traded Commodities such as Xetra-Gold or Invesco Physical Gold ETC are backed 1:1 by gold bars in vaults. Some offer the right to physical delivery.
Advantages
- Backed by real gold in a vault
- Tradeable on exchange like a stock
- Low cost (TER 0.00-0.25%)
- Some allow physical delivery (Xetra-Gold)
Disadvantages
- Counterparty risk with the issuer
- You don't own the gold directly
- Broker fees when trading
- Tax treatment varies by country
Estimated cost: TER 0.00-0.25% + broker commissions
Precious metals ETFs
BeginnerExchange-traded funds that track the price of gold, silver or platinum. Maximum liquidity and minimum cost. Bought and sold like stocks from any broker.
Advantages
- Maximum liquidity during market hours
- Very low TER (from 0.07%)
- Easy to integrate into a diversified portfolio
- No custody or insurance worries
Disadvantages
- You don't own physical metal
- Systemic financial market risk
- Possible securities lending
- Tracking error vs spot
Estimated cost: TER 0.07-0.40% + broker commissions
Futures and CFDs
AdvancedDerivative contracts that allow speculating on gold prices with leverage. Only recommended for experienced traders with active risk management.
Advantages
- Leverage (greater exposure with less capital)
- Short positions possible (profit from drops)
- Extreme liquidity in regulated markets
- Low transaction costs
Disadvantages
- Risk of loss exceeding invested capital
- Requires active management and advanced knowledge
- Daily financing costs (rollover/swap)
- High emotional volatility
Estimated cost: Variable (spreads + overnight financing)
Major ETFs and ETCs
Physically-backed exchange-traded products available through major international brokers. Filter by metal and sort by any column.
Filter:
| Name | Ticker | Metal ↑ | TER | Size | Currency | Factsheet |
|---|---|---|---|---|---|---|
| Invesco Physical Gold ETC | SGLD | Gold | 0,12 % | ~20.000 M$ | USD | View |
| iShares Physical Gold ETC | IGLN | Gold | 0,12 % | ~16.000 M$ | USD | View |
| WisdomTree Physical Gold | PHAU | Gold | 0,39 % | ~5.000 M$ | USD | View |
| Xetra-Gold | 4GLD | Gold | 0,00 % | ~12.000 M€ | EUR | View |
| Amundi Physical Gold ETC | GOLD | Gold | 0,15 % | ~5.000 M$ | USD | View |
| WisdomTree Physical Platinum | PHPT | Platinum | 0,49 % | ~300 M$ | USD | View |
| iShares Physical Silver ETC | ISLN | Silver | 0,20 % | ~1.200 M$ | USD | View |
| WisdomTree Physical Silver | PHAG | Silver | 0,49 % | ~1.800 M$ | USD | View |
Indicative data. TER and fund size may vary. Please consult the product factsheet before investing.
Frequently asked questions
Disclaimer
This guide is for informational and educational purposes only. It does not constitute financial, tax or investment advice. ETF data is indicative and may not be up to date. Before making any investment decision, consult a qualified financial advisor. Metalorix accepts no responsibility for investment decisions made based on this information.