In 2024, gold grew by 26.88% – more than the return on the stock market, Ukrainian government bonds, investments in land or real estate. Since the beginning of 2025, gold has been one of the few assets that continues to grow in price. Not surprisingly, the “great uncertainty” that reigns in the world today is a great time for gold. Large institutional investors – pension funds and investment companies – are trying to minimize investment risks, switching from shares of public companies, corporate and government bonds, the venture market, real estate to the “eternal” – gold.
Interest in gold can be seen in both trading volumes and the size of gold reserves.
So is it time for us to invest in gold?
First, it's worth remembering why you need that gold in your portfolio.
If we compare the return on gold with other asset classes, such as stocks of large US companies and real estate, the average return on gold since 1993 is 6.28%. US stocks 10.32%, real estate – 8.6%. Volatility (the level of deviation from the average return, or more simply – the level of risk) is comparable.
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That is Gold is historically a high-risk, low-return asset compared to other classes. But it has its own great feature – a negative correlation to other classes. Simply put: when other assets grow, gold falls. And vice versa. Explaining this by market sentiment, when it is scary (like now), investors “go out” into protective assets. When the market grows – they get out of them and buy more profitable ones.
And negative correlation plays a significant role in an investor's portfolio. If you add up to 5% of gold to your portfolio (which includes stocks, bonds, real estate, cryptocurrencies, etc.), you can reduce portfolio volatility (risk) without reducing returns.
But when it comes to directly buying gold, a fairly mundane question arises: "As?"
How to invest in gold
We can buy it.
1. In the form of physical gold – coins/bars/powder
2. In the form of a bank metal account
3. In the form of instruments on the capital market
Ingots
Indeed, they are sold in jars and are available in various weights (1 g, 5 g, 10 g, 50 g, 100 g, 1 kg). They are sold together with a quality certificate.
If to melt bar, the certificate will lose its value and the gold can only be sold as scrap.
Price, besides market, depends on weight (less weight – more expensive gram), manufacturing method (cast (without pictures) are cheaper than stamped (with markings on the ingot)), from the manufacturer (the more trust in the manufacturer, the more expensive the gold) and from bank markups.
If the ingot has damage or scratches, the bank can buy it back at a lower price (like the same “yellowed dollars”, if you know what I mean). It is advisable not to take it out of the packaging at all.
Selling a bullion is more problematic than buying one. Most often, the sale of gold goes through all branches, and the return purchase through the directorate or the main bank. Why? Because there is a special position, an expert who, in addition to the integrity of the packaging and primary documents, has other algorithms for confirming the metal sample. The cashier can check the currency, but not always the metal.
As with currency, when buying and selling there is always spread (the difference between the buying and selling price) (often up to 25%). Therefore, its profitability must exceed at least this spread.
Interesting: According to current legislation, banking metals are compared to currency. Therefore, when selling a bullion, no taxes are paid (it's like when you exchange hryvnia for dollars and vice versa).
Deposit
You can put gold on deposit in a bank (there is practically no return there, it is more about storage).
But, firstly, income from a deposit is taxable. Secondly, such a deposit is NOT covered by the deposit guarantee fund and is not insured in the event of a bank bankruptcy.
You can open such an account without buying the entire bullion (open a deposit based on the current gold value. When you close the deposit, you will be paid the amount of money based on the current gold value). But you will have to pay taxes, and the return on the deposit itself is minimal.
In general, everything related to bullion is about large sums and very long-term goals. Bought, buried, forgotten. Speculating on bullion is impossible: transaction costs are too high.
Coins
Another way to buy gold, a little cheaper. But the problems are the same as with bars. Prices on the market depend not only on the cost of the metal, but also on their subject, circulation, quality of minting. Therefore, the price of gold can increase, but for coins remain unchanged.
Coins can be purchased through online store NBU: 60% from the circulation of numismatic products of new issues is sold here, or through distributing banks: 6% each from the circulation of numismatic products of new issues: Ukrgasbank, Privatbank, Taskombank, Oschadbank, FUIB.
Securities
The easiest, most liquid way to invest in gold – through shares of exchange-traded funds. An ETF (Exchange Traded Fund) is a fund traded on an exchange that allows you to invest in certain areas or industries with minimal commissions: buy all large US companies, small companies in developed countries, companies in the financial or defense sectors, or, for example, gold.
There are funds that track the spot price of gold using physical bullion held in vaults around the world; minus the costs of purchasing, transporting, storing and insuring. There are funds that track the index of gold mining companiesYou can buy individual shares of gold mining companies.
Here, the spread is small due to high liquidity. Ease of buying and selling. Market prices, no markups. Low entry threshold.
But for Ukrainians, such luxury is only available for having a foreign brokerage account and currencies on it. The most popular gold ETF is GLD, launched in 2004 by SPDR (State Street Global Advisors) and backed by physical gold stored in London.
To buy such a fund, you need to have a brokerage account, fund it, enter the fund name (ticker) in the search field, and buy.
The difference between the purchase and sale is taxed in Ukraine at a rate of 18% + military duty of 5%.
Result
To summarize, gold, as an asset, has its prospects for growth in 2025 and beyond, provided that uncertainty persists or a recession occurs.
For long-term investor, that forms the strategy and investment portfolio, Gold can act as part of a portfolio to reduce its risks.
The easiest way to buy gold is to use market instruments. When buying physical gold, it is worth calculating all the associated costs (spread, storage, commissions, etc.) and understanding what kind of return you could expect to cover these costs. Physical gold is about a very long investment period.
The main thing to remember is that despite the news about gold's rise, and its attractiveness today, diversification – this is the only strategy that will allow you not to lose your capital under any conditions and, under good circumstances, to make money.