How to Invest in Gold: From Coins and Bars to Crypto Tokens

In many ways, gold shares some similarities with Bitcoin – it is scarce, it is used as a hedge against inflation, and it often performs well when other investments struggle. With markets facing uncertainty, gold is now outperforming stocks. For those interested in adding gold to their portfolio, there are several ways to do it.

Bars and Coins: The Classic Choice

The most direct way to own gold is to buy it physically – coins and bars. It’s simple and powerful. You get real, touchable gold, no intermediaries, no fancy apps or brokers between you and your asset.

One big advantage of physical gold is liquidity during crises. If you ever need to leave your country quickly – like during a war – a gold coin can be turned into cash almost anywhere. Pawn shops, jewelry stores, private buyers – they all know the value of gold. No need for internet access, bank cards, or proof of anything. Just the gold itself.

But owning gold in your hand isn’t always comfortable. Storing a lot of it can feel risky. Keeping it under your bed might seem romantic at first, but it’s a security nightmare. That’s why many people rent safe deposit boxes at banks. The downside? The gold is no longer with you at all times. In extreme scenarios, you might not be able to access it quickly.

If you decide to buy coins, stick to the well-known investment ones like the Australian Kangaroo, Canadian Maple Leaf, or Krugerrand. They are 1 oz coins, and universally accepted. Stay away from collectible or “special edition” coins. Their value is based partly on rarity, which can be tricky if you ever need to sell fast.

Bars offer more size options. You can get big bars like 100g or 500g, or even tiny ones like 1g and 2g. Smaller bars usually cost a bit more per gram because of manufacturing costs, but they are easier to sell when you need quick cash. Just like with coins, it’s smart to choose bars made by LBMA-accredited refiners if you can. That way, buyers everywhere will trust what you’re selling without extra questions.

Buying Gold Through ETFs

If keeping gold at home makes you nervous, you can invest without ever touching a bar. Gold ETFs (Exchange-Traded Funds) are one way. You buy them just like you would buy stocks. It’s quick, familiar, and often cheaper than buying physical gold, especially if you’re planning to invest a small amount.

With ETFs, you don’t need to worry about storage, insurance, or thieves. You just hold your gold in digital form inside your trading account. Some ETFs are directly backed by physical gold stored in vaults. Some track the gold price using other methods. Always check the details before you buy.

There are small costs involved, usually a management fee taken automatically every year. It’s not big, but it’s good to know it’s there. Also, you’re trusting that the fund is managing the gold properly. You don’t actually own a gold bar with your name on it – you own a share of a big pool.

Gold-Backed Crypto Tokens

If you like crypto but want the safety of gold, there’s a middle ground too. Some cryptocurrencies are backed by real gold. Tether Gold (XAUt) and PAX Gold (PAXG) are the most popular examples.

These tokens are pegged to the price of gold. You can hold tiny fractions of them, move them around easily, and trade them 24/7. It mixes the flexibility of crypto with the stability of gold.

But there’s a catch: these tokens depend on their issuers. If the company behind the token mismanages its reserves, or worse, goes bankrupt, your investment could be at risk. It’s not about gold anymore, it’s about trusting the people who claim they’re holding it for you.

Another thing to think about is that while you can move gold tokens quickly, not every crypto exchange offers them. And if you need actual cash, you’ll still have to sell the token first – you can’t just walk into a shop with PAXG on your phone.

Is Gold Worth It?

Gold has been around for thousands of years for a reason. When markets become uncertain, gold often holds its value while other assets struggle. It is simple, physical, and does not rely on any government promises. Even in a digital world, there is still a place for real, tangible assets like gold.

Gold is not about chasing profits. It is about peace of mind. It is unlikely to surge and make investors rich overnight, but it tends to hold its value during turbulent times. For many, that kind of stability is exactly what makes it worth having.