2025 Gold Investment Guide: An Analysis of Diversified Strategies for Buying Gold to Preserve Value

Why Invest in Gold Now That Prices Have Reached New Highs?

As of October 2025, international gold prices have surpassed the historic high of $4,300 per ounce. This rally is no coincidence—rising global economic uncertainties, increasing inflation expectations, and escalating geopolitical risks are prompting investors to reassess the value of gold.

From the post-pandemic recovery, gold prices in early 2020 were about $1,500, and in just five years, they surged over $4,000, an increase of more than 100%. Younger generations are also realizing that instead of leaving funds idle in banks, buying gold to preserve value is a better way to hedge against inflation.

The Three Major Advantages of Gold Investment

Hard Asset for Preservation and Inflation Hedge

Prices keep rising, but wages grow relatively slowly. As a tangible asset, gold has long-term value preservation characteristics. It does not depreciate due to policy changes or banking risks, especially during economic downturns, highlighting its value.

Diversification in Investment Portfolio

If your portfolio consists solely of stocks or cryptocurrencies, market volatility could significantly diminish your assets. Gold acts as a “insurance” role. After the Russia-Ukraine war outbreak in 2022 and recent tariff policy uncertainties, gold prices rose rapidly. It is recommended to allocate 5%-15% of assets in gold to hedge risks without hindering overall growth.

Diversified Investment Tools

You are not limited to physical gold bars. Gold savings accounts, ETFs, CFDs, and futures allow small investors to participate easily. In 2024, the daily trading volume of gold reached $227 billion, second only to the S&P 500, ensuring liquidity.

Comparing Gold Investment Methods: Find the Best Fit for You

1. Physical Gold — Traditional Preservation Choice

Directly purchase gold bars, coins, etc., through banks, jewelry stores, or pawnshops. This is the most traditional method, suitable for risk-conscious investors.

Advantages: Hard currency, strong preservation function
Disadvantages: Poor liquidity, high storage costs, no dividend income, less accessible for small investors

Tip: Prioritize gold bars and coins, check brand, weight (99.99% purity), quality, and certificates. Be cautious to avoid buying jewelry or commemorative coins.

2. Gold Savings Account — Low-Threshold Paper Gold

Replaces physical gold with paper records, with prices linked to spot gold. Most banks in Taiwan offer this service; after paying account opening fees, you can buy, sell, and store without security concerns.

Advantages: Low starting point (from 1 gram), no account opening fee
Disadvantages: Higher transaction costs, no interest income, unsuitable for short-term trading

3. Gold ETF — Stock-Like Convenience

An open-ended fund listed on stock exchanges, mainly investing in gold assets. Can be traded in real-time like stocks, with low transaction fees, ideal for beginners. The world’s largest gold ETF is SPDR Gold Shares (GLD.US), and Taiwan has the Yuanta S&P Gold Inverse ETF (00674R.TW).

Advantages: Low investment threshold, low fees, easy to operate
Disadvantages: Trading hours limited, managed by fund companies

4. Gold Mining Stocks — Indirect Risk Exposure

Invest in stocks of gold mining companies, such as Barrick Gold (ABX.US), Newmont Mining (NEM.US). Stock performance depends on company operations, shareholder structure, and other factors.

Advantages: Low entry barrier, convenient trading, low fees
Disadvantages: Deviates from gold price movements

5. Gold Futures — Leverage and Complexity

Trade gold futures contracts through exchanges or futures brokers. Recently, micro gold futures lowered the barrier to a few hundred dollars, but contracts have expiration dates and need to be closed or rolled over before expiry.

Advantages: Leverage, high capital efficiency, T+0 trading, two-way operation
Disadvantages: Requires delivery or rollover, high leverage risk, high entry threshold, not suitable for beginners

6. Gold CFDs — Contract Optimization for Trading

Contracts for Difference (CFD) track spot gold prices (underlying XAUUSD), without owning physical gold. Compared to futures, CFDs have simpler rules, lower minimums (as low as 0.01 lot), T+0 two-way trading, no expiration, and no rollover.

Advantages: Low investment threshold, two-way trading, simple contracts, friendly for small capital, no time limit
Disadvantages: Leverage risks need careful management

Quick Comparison: Futures vs. CFDs

What You Must Know Before Buying Gold for Preservation: The Truth About Gold Preservation

Many believe “buying gold preserves value,” but reality is more complex. Gold is indeed a physical asset and a globally recognized precious metal that does not depreciate due to policies. However, gold’s preservation ability is not linear and does not guarantee short-term gains.

Warren Buffett once said there’s no need to invest in gold because its value is driven by supply and demand, and it does not generate wealth—no dividends or yields.

Over the long term, gold has experienced two major bull markets in the past 50 years, with most periods being flat. During the same time, stock markets have faced multiple crashes, yet gold prices remained stable. Understanding gold’s characteristics and applying correct strategies are key to successful trading.

Gold Investment Mindset: Grasp the Long-Term Rhythm

Gold has a certain “rhythm.” Historical observations show roughly a 10-year bull cycle, followed by several years of correction. These are driven by economic conditions, dollar strength, interest rate trends, and global risk sentiment.

Factors Driving Gold Prices:

• During stock market turbulence and rising inflation, gold is sought after, pushing prices up
• During economic stability and booming stock markets, gold demand declines
• Longer-term “super cycles” are influenced by global economic structural changes (e.g., emerging market growth, resource demand surge)

Beginners do not need to watch the market daily. Just observe the dollar trend, interest rate changes, and risk sentiment to judge whether gold is entering the next upward cycle.

Small investors can start with gold savings accounts, ETFs, or online trading platforms, practicing with demo accounts to build experience without risk.

Practical Tips for Short-Term Trading

For swing traders, gold CFDs offer very low trading costs, two-way trading, and leverage advantages. You can open a position with as little as $10, suitable for small capital testing.

But remember:

• Use stop-loss, take-profit, and trailing stop tools for risk management
• Leverage amplifies both gains and losses
• Beginners should start with small amounts and low leverage
• Familiarize yourself with platform order types (market, limit, stop orders)
• Choose reliable and secure trading platforms

International gold prices are influenced by sentiment, demand, supply, and economic factors, providing abundant trading opportunities. The key is to develop clear trading strategies and control risks, rather than blindly following trends.

Regardless of the investment tool chosen, the core of preserving value with gold is long-term thinking combined with flexible strategies. Under controlled risk, seize the structural upward opportunities of gold.