Where to buy gold in 2024
Best options to buy gold:
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Buying gold futures on the stock exchange
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Buying shares of ETFs that invest in gold
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Buying shares of gold mining companies
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Buying bank bars
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Buying gold collectible coins
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Forex gold CFD trading
Gold has been a dependable store of wealth for centuries, and its value is expected to increase in the coming years. With the rise of digital banking and online trading, investing in gold has never been easier.
In this article, we will discuss the best options to buy gold in 2024, from real bars and securities to trading CFDs on gold. We will also explore what to look for when selecting the best place to buy gold online and how much one can expect to earn from gold investing.
Lastly, we will examine the risks associated with gold investments.
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Is it better to invest in physical gold or gold ETFs?
Both have pros and cons. Physical gold allows direct ownership but involves storage costs. Gold ETFs have lower costs and no storage hassle but you don't truly own gold. Diversifying into both physical and paper gold can help manage risks.
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What are the risks of trading gold CFDs?
Leverage enables large exposure using margin but magnifies both gains and losses. Slippages and gapping markets can result in forced liquidations.
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Is it better to buy gold coins or bars?
Bars tend to have lower premiums while coins may have higher liquidity. For beginners, certified coins are usually recommended for their negotiability and ease of sale.
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What affects the price of gold the most?
Major drivers include the USD currency exchange rates, inflation expectations, bond yields, stock market performance, jewellery demand and central bank purchases.
Is it a good idea to invest in gold now?
Investing in gold can be a sound financial choice, as gold has historically been a store of value for centuries.
However, it is important to consider both the pros and cons of investing in gold to ensure that it is the right decision for the investor's individual financial situation.
This article will explore the various benefits and drawbacks of investing in gold now.
Pros of investing in gold
Exploring the potential of investing in gold now can be a wise financial move. Here’s a list of reasons why investing in gold can potentially be a great idea:
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1
Gold has long been considered a valuable asset, as its price appreciation over time has helped to protect investors against inflation.
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Gold dealers offer an array of gold coins to buy, making it easy to diversify and create a portfolio of gold investments.
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Gold can be used to protect against currency depreciation, as it is not tied to any single currency.
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Gold coins are easy to store and transport, making them a great investment option.
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Investing in gold can be very easy and straight-forward for beginners owing to the existence of CFDs and various options.
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There is a very low correlation between gold and other assets, providing an invaluable hedge in times of market volatility.
Cons of investing gold
Despite the many potential benefits of investing in gold, it is important to consider the drawbacks of such an investment before making a decision. Here are four potential cons to consider:
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1
Gold is a volatile asset. Prices can change dramatically over short periods of time. This makes it difficult to predict returns.
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In case of physical purchases of gold, it is an illiquid asset. It can be hard to find buyers and can take time to sell
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It can be difficult to find the best place to buy gold online or to know which bullion dealers to trust.
It is important to weigh the pros and cons of investing in gold before making a decision. To maximize returns, ensure to research and find the best place to buy gold online and reliable bullion dealers.
Best options to buy gold
When it comes to finding the best places to buy gold in 2024, there are several options to consider.
For buyers looking for convenience, online gold buying websites offer a wide selection of gold products at competitive prices, which is why it’s important to look for the best gold buying website. These websites provide customers with a secure and reliable way to purchase gold from the comfort of their own home.
For those looking to purchase gold for investment purposes, there are several options available. Many precious metal dealers offer a variety of gold coins and bars for purchase, including both collectible and investment-grade gold. Additionally, many banks and financial institutions offer gold certificates, gold-based savings accounts and gold ETFs, which are exchange-traded funds that track the price of gold.
For those interested in buying gold from a physical store, some jewelry stores specialize in selling gold. These stores usually offer a variety of gold products, such as coins, bars, jewelry, and other collectibles.
Let’s take a look at different options in more detail.
Buying gold futures on the stock exchange
One of the best ways to buy gold online is through gold futures. Futures are simply a financial contract between a buyer and a seller. The buyer (or investor) agrees to buy the asset from the seller at a specific price based on a date in the future.
Gold futures are an exciting proposition because they offer investors the chance to trade gold without paying the full amount straight away. Instead, an initial payment is agreed upon, with a future payment contracted at a fixed date. This way, the investors don't have to buy the gold physically, but they can still profit from future price movements..
Gold futures are a great alternative to mining stocks and bullion coins and can be bought in 100 ounces, 33.2 ounces, and 10 ounces. Many investors like gold futures because they are reasonably straightforward. Investors can buy or sell gold without management fees, and the taxes can be split between long-term and short-term capital gains.
Gold Futures Advantages
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Investors can buy gold without having to worry about finding and paying for secure storage facilities
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Gold futures require a small initial investment, plus investors only have to pay the balance on the futures contract
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Short sell possibilities
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Good liquidity
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Investors can hedge risks
Gold Futures Disadvantages
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Gold futures are volatile, meaning there is a chance that markets can crash
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Gold price fluctuations can be quite extreme, meaning investors can lose money if there are significant price dips
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The spot limit for gold futures contracts is 6,000
Buying shares of ETFs that invest in gold
Gold ETFs are funds that you can trade like stocks. They have become a prevalent type of investment in recent years. Gold ETFs are a low-cost and diversified alternative that invests in gold-backed assets. When you buy gold ETFs, you don't own the physical commodity.
These instruments let investors have exposure to gold markets through more minor positions than futures contracts or physical ownership. There are several Gold ETFs to choose from. These ETFs can be traded at platforms like E*Trade, Interactive Brokers, and TD Ameritrade.
Gold ETFs Advantages
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Buying physical gold incurs making charges. These costs don’t apply to ETFs
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No physical storage requirements
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Easy to sell into a highly liquid market
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Gold ETFs are more tax-efficient than physical gold
Gold ETFs Disadvantages
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Can’t be redeemed in gold
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High volatility and market risk
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Account maintenance costs
Buying shares of ETFs that invest in gold
Gold mining stocks are shares in companies that mine gold. The price of gold goes up when there is an increase in demand for the metal, so the value of the stocks also goes up.
However, it's important to note that there are many other factors that affect the price of gold mining stocks, including industry conditions and company management.
👍 Pros
• Price Appreciation. Gold mining stocks usually appreciate when the price of gold goes up. This means that you can profit from your investment if you sell at the right time.
• Dividends. Many gold mining companies pay dividends to their shareholders. This means that you can earn a regular income from your investment.
• Hedging. Gold mining stocks can serve as a hedge against risk when you are trading gold.
• Diversification. Gold mining stocks are not highly correlated with other investments, including the price of gold itself. This means that your portfolio will have less volatility when you invest in them.
• Market Exposure. The price of gold affects many other investments, including stocks and bonds. Gold mining stocks allow you to profit from other markets without trading them directly.
👎 Cons
• Volatility. Gold mining stocks are more volatile than the price of gold itself. This means that you could lose a significant amount of money if the price of gold falls instead of rises.
• Currency Risk. The price of gold mining stocks is in U.S. dollars, so they will fluctuate with currency changes and with the price of gold. Therefore, to avoid currency problems, you should look for companies that convert their gold reserves into U.S. dollars before paying dividends to shareholders.
• Mining Risk. Supply and demand help determine the price of gold, but the supply of gold depends on the success of mining companies. This means that the problems at these companies, including labor disputes and environmental issues like pollution, could affect your investment.
Buying shares of ETFs that invest in gold
Gold bar allows investors to capitalize on the price of gold and is one way to invest in gold. Investors buy and sell gold bullion as an investment, usually with the hope that they will be able to sell it later on at a higher price.
Gold bars can be purchased from many financial institutions, such as banks. However, keep in mind that there are large differences between different institutions regarding their commissions, prices, offers, and more. But they are also available through private vendors or online companies.
👍 Pros
• Suitable for both small and large investors
• Have actual gold
• Can sell or swap gold at any time
• It's affordable
• Collateral for securing loans
👎 Cons
• Risk of fraud or counterfeit products
• Safety and protections lay upon investors
• Need storage
Buying gold collectible coins
Investing in gold by buying physical coins is a very simple process, which would seem to be an advantage. The Golden coin is a denomination of the currency. A denomination (sometimes called a face value) is the name given to a coin or paper money by a government.
There are some differences between physical gold and coins: the coins are smaller in size, so they are more affordable for small investors. Their weight is certified by a mint (20 pieces of coin weigh 1 troy ounce). The gold coins can be sold to a smelter, which pays you cash for them. You can buy gold coins online or at any local coin dealer near you.
👍 Pros
• Taking physical possession
• Greater liquidity and flexibility
• No expiry date and no minimum holding period
• Suitable for the small investor
👎 Cons
• May suffer losses because of currency fluctuations
• Purchasing coins is not instantaneous
Forex gold CFD trading
A gold CFD (contract for difference) is a derivative that allows investors to trade an underlying asset (in this case, the price of gold) without taking ownership of the commodity. The best thing about CFDs is that you can make gains as if you owned the actual gold. In addition, CFDs are traded on margin, which gives you more exposure to the market for a fraction of the amount needed to buy physical gold.
Trading gold works in a similar way to forex trading. On trading platforms, the trading code is XAU, and the most popular Gold exchange rate is XAU/USD. However, other pairs are available, like XAU/EUR (Euro), XAU/GBP (British Pound), and XAU/JPY (Japanese Yen).
Again, Gold CFD trading is about taking advantage of gold price movements. To do well, you need to predict and analyze market movements. To do this, you'll need to develop a deep understanding of the various factors that affect the price of gold.
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Gold CFD Advantages
Accessibility
Buying physical gold is expensive, with the price of one gold bullion averaging $50,000 or more. CFDs allow access to this expensive market by offering purchases of smaller denominations.
Additionally, a CFD trading account is quick to set up.
Liquidity
Daily gold trading volumes are estimated to be around $70 billion. This number is more than most currency pairs. The exceptions are the vast markets for EUR/USD, USD/JPY, and GBP/USD. These large trading volumes mean that gold CFDs have high liquidity.
There are several benefits of high liquidity. For example, gold CFDs are less expensive to trade when compared to other financial instruments. Also, the commissions are usually lower. The main benefit of highly liquid markets is that it's easier to sell you positions.
Go Short or Long
Trading gold CFDs offers ways to make money whether the market is going up or down. Because of the market's high liquidity, you can capitalize on the market rising or falling. If you think the price of gold will increase against a currency, you can go long, but if you believe the price of gold will decrease against a currency, go short.
No Contract Expiry
Gold CFDs don't have an expiration date. Investors can choose when to close a position. This can be incredibly beneficial as you can keep a position open until you hit the profit you want.
Volatility
The gold market is incredibly volatile. Its price fluctuates more than traditional currency pairs like EUR/USD. Increased volatility means increased opportunities to make a profit.
Leverage
CFDs are a leveraged financial product. This means that investors don't need to deposit the entire amount to open a position. Lower margin requirements allow investors more exposure. For example, a 100:1 leverage on a $100,000 only requires a deposit of $1,000. Of course, investors need to practice a lot of caution around leverage.
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Gold CFD Disadvantages
Margin Risks
While margin is an advantage, it can also be a considerable disadvantage. Trader's profits and losses are amplified with a margin, and if the market turns against you, this can lead to significant losses.
Long Positions
Most gold CFD traders open positions to take advantage of short-term price movements. However, some traders choose to maintain long positions. In these scenarios, brokers can choose to charge rollover rates for keeping the position open. In some cases, this can become very costly. Traders should understand these costs in advance before holding a position. Sometimes the costs outweigh the benefits.
Volatility
Volatility is both a curse and a blessing. Gold is considered a safe haven when stock markets are unpredictable. But this high volatility doesn't always work out well. Even slight market movements can have a considerable impact on the price of gold and result in significant losses.
Buying real bars and «gold» securities vs trading CFDs on gold
When it comes to investing in gold in 2024, there are several options available to investors. The table below contains an overview of the pros and cons of each:
| Buying a real asset | Gold Futures | Trading CFDs | |
|---|---|---|---|
Minimum deposit |
Varies depending on the dealer, but typically requires a significant amount of money to purchase gold bars or coins |
Assets for copy trading An account approved to trade futures is required, and minimum net liquidity of $25,000 is required for margin accounts |
Regulator Accounts can sometimes be opened for as little as $100, although minimum deposit requirements can be higher than that |
Leverage |
No leverage |
Assets for copy trading Futures contracts offer the highest leverage, requiring less capital while increasing the potential return (and the risk) of the investment |
Regulator CFDs provide higher leverage than traditional trading. Standard leverage in the CFD market is subject to regulation. It is not uncommon to find 20:1, 30:1, even 50:1 leverage |
Commission related expenses |
There may be fees associated with buying and storing physical gold, such as delivery fees, insurance, and storage fees |
Assets for copy trading Commission fees vary depending on the broker, but gold futures trading for $2.25 per contract can be found |
Regulator There are no other hidden fees or commissions, and in some countries where CFD trading is taxed, the cost of gold trading may be tax-deductible. Traders to need to pay the spread though |
Liquidity |
Physical gold can be less liquid than other investment options, as it may take time to find a buyer and sell the gold |
Assets for copy trading The liquidity of the gold futures contract often makes it easier to take advantage of opportunities in nearly all market conditions |
Regulator Higher than physical gold |
Reliability (regulation, risk level) |
It is important to use a reputable dealer when buying physical gold to ensure authenticity and avoid scams. Gold bullion is generally considered a moderate-risk investment asset |
Assets for copy trading Gold and silver futures exchanges offer no counterparty risks to participants, and the exchange acts as a buyer to every seller and vice versa, decreasing the risk should either party default on its responsibilities |
Regulator A CFD broker's credibility is based on reputation, longevity, and financial position rather than government standing or liquidity. There are excellent CFD brokers, but traders should be aware of the significant risks when trading CFDs |
To sum up, for beginners, the most convenient and easiest approach is to invest in CFDs.
How to choose the best place to buy gold online
Considering the risks associated with CFD trading, it is important to carefully evaluate the different options when choosing the best place to buy gold online in 2024. When shopping for gold, research is key.
Start by researching the reputations of the different gold vendors online. Look for reviews from past customers to get an idea of the quality of the gold, customer service, and pricing. Additionally, investigate the types of gold products offered, such as coins, bars, and ETFs, and choose the product that best fits your needs.
Another important factor to consider is the payment methods accepted by the seller. Ideally, the vendor should accept a variety of payment methods, including credit cards, debit cards, and bank transfers. It is also a good idea to check for any extra fees or hidden costs before making a purchase.
Finally, take the time to assess the security of the website. Make sure the website is secure and encrypted to protect your personal information. Also, check for any security certifications, such as VeriSign or SSL, to ensure the website is safe and secure.
How much can I earn from gold investing?
Having done your research on the best place to buy gold online in 2024, it is important to understand how much you can earn from gold investing. The amount of profit you can make on gold investing depends on the strategy you choose, your own experience, and of course your skill as an investor and trader.
Here are four factors to consider when deciding which strategy to use:
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Long-term investment: This strategy involves investing in gold for a longer period of time, usually over several years. Taking a look at the screenshot above, you can see that in the last 5 years, investing in gold would have made a total profit of 57.73%, which amounts to an annual gain of approximately 11.55% (the numbers shown do not take potential leverage into account)
How much can I earn from gold investing?
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Trading with a broker: This option allows you to take advantage of small fluctuations in the market and can be more profitable, but it requires more experience and knowledge. This is a strategy that favors those with the most experience and skill, but is more harsh towards beginners. In theory, if you could accurately predict every single price movement, there would be virtually no limit to the amount of money you could earn, even if your initial deposit is small.
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Diversification: It is a key approach to managing risk when investing in gold. It involves holding different types of gold-related assets that may perform differently in various market environments. The goal is to reduce volatility and smooth returns over time.
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Rebalancing Strategy: Over time, market fluctuations can shift an investment portfolio away from its intended allocation targets. Rebalancing is the process of realigning allocations back to their original percentages.
A diversified gold portfolio typically includes allocations to physical gold, gold mining stocks, and gold funds/ETFs. Physical gold provides a stable, capital-preserving component. Stocks and funds offer participation in upside gold price movement with more risk.
Proper diversification requires evaluating assets' correlations and assigning proportions accordingly. It's usually optimal to overweight core physical gold positions for stability versus higher risk equity alternatives.
Determining clear rebalancing rules upfront is important, such as based on periodic intervals or when positions move outside defined bands. Rebalancing disciplinarily as assigned ensures investors avoid taking either unnecessary risk or missing out on opportunities.
It also involves reviewing portfolio components regularly to identify under/outperformers for potential replacement. Changes in economic conditions may warrant re-examining the appropriateness of the asset mix.
Overall, rebalancing helps maintain diversification benefits and prevents emotional decision-making from skewing a portfolio. It supports keeping investments aligned to long-term objectives over many market cycles.
No matter which strategy you choose, it is important to research the gold market and understand the risks and rewards associated with each strategy
Is investing in gold risky?
Despite the potential rewards associated with gold investing, it is important to recognize the inherent risks involved. From an investment perspective, gold is a relatively volatile asset, meaning its price can fluctuate significantly in a short period of time. This means that an investor could easily lose a significant portion of the value of their investment in a short amount of time.
Additionally, gold investments can be subject to political and economic risks, as the price of gold can be affected by market fluctuations, geopolitical events, and the performance of other currencies. Gold is also vulnerable to theft and fraud, so it is important to ensure that any gold investments are kept securely.
Furthermore, many gold investments are illiquid, meaning that it can be difficult to quickly turn a gold investment into cash when needed. Finally, gold investments can be costly to manage and store, and there are often fees and commissions associated with gold investments.
TOP 3 best stock brokers to buy gold futures
TOP 3 best CFD brokers for trading gold with leverage
RoboForex
In 2009, RoboForex Ltd. was established. RoboForex has been offering trading services on a global basis ever since it entered the market for Forex brokers. The broker specializes in trading automation solutions such as the CopyFx auto trading platform, as well as the bot builder. RoboForex supports both 12,000+ CFDs, as well as direct trading in US shares with extra low fees from 0.09 cent per share.
The account type selected on the interface at RoboForex will determine the spreads. For EUR USD, the spreads' is ranging from 0.03 to 1.4 pips for different account types. RoboForex provides 0% fee on all deposits and withdrawals.
RoboForex is generally governed by Belize's Financial Services Commission. The broker also has a European legal entity with regulation in Cyprus (CySec). At RoboForex, there is a civil liability insurance program in place that offers industry-leading defense against errors, fraud, omissions, negligence, and other risks that might result in losses for clients.
Pocket Option
Pocketoption was launched in 2017. The broker gives its clients access to trade currency pairs, commodities, stocks, cryptocurrencies, and indices. To operate in the financial markets, the company has developed its own unique trading platform. In addition, Pocket Option clients can trade in MT5. The broker’s service is available in more than 95 countries and regions globally. Pocketoption’s top priority is the high quality of customer service, constant improvement of trading technologies, and financial innovations.
The company's clients get access to many bonus offers, and participate in a profitable affiliate program. Thanks to unique rewards, traders can increase their profile level and purchase resources in Pocket Option's own Market store to increase their profitability while trading.
Leverage is a tool that is offered by numerous brokers to traders. With leverage, traders can open larger positions, allowing them more exposure to the market in which they are trading despite their small initial deposit, and PocketOption offers a maximum leverage of 1:100 on its MT5 Forex account.
The company behind the Pocket Option website that provides brokerage services is PO Trade (SV) Ltd, which is registered in Saint Vincent and the Grenadines, considered to be a Caribbean offshore tax haven. The company says on its website that it is regulated by the International Financial Market Relations Regulation Center (IFMRRC), which is not an official regulatory authority
Exness
Exness has been in operation since 2008. Exness is the best broker for both active and passive investment. It offers a wide variety of trading instruments along with reliability and innovation. The broker offers a range of accounts, depending on the needs of traders. For beginners, the broker offers cent and demo accounts, and for active traders, ECH accounts with low spreads from 0.1 pip.
Exness offers services via its registered offices in the British Virgin Islands, Seychelles, Curaçao, South Africa, and Cyprus. Retail customers cannot get services from offices in Cyprus or the United Kingdom.
Exness is governed by the strictest regulatory agencies, including the Cyprus Securities and Exchange Commission (CySEC) and the UK's Financial Conduct Authority (FCA). Exness is subject to financial services authority (FSA) and FSCA regulation as a securities dealer (South Africa).
Conclusion
Gold has long been seen as a reliable, safe-haven asset for investors.
It is important to understand the different types of gold investments and their associated risks before committing to any form of gold investment.
With the proper research and knowledge, investors can find the best place to buy gold online in 2024 and take advantage of the potential returns it can offer.
Team that worked on the article
Vuk stands at the forefront of financial journalism, blending over six years of crypto investing experience with profound insights gained from navigating two bull/bear cycles. A dedicated content writer, Vuk has contributed to a myriad of publications and projects. His journey from an English language graduate to a sought-after voice in finance reflects his passion for demystifying complex financial concepts, making him a helpful guide for both newcomers and seasoned investors.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.