Investing in gold
Gold is one of the world's most widely traded commodities and has historically been used as a store of value. Today, investors can gain exposure to gold through different investment products, including gold stocks, Gold ETFs and Gold ETCs.
What is gold?
Gold is a precious metal that has been used for thousands of years as a store of value, a medium of exchange and for jewellery and industrial applications.
Today, gold is traded globally and is held by central banks, institutional investors and individuals. Unlike many other commodities, gold demand is largely influenced by investment activity rather than industrial consumption.
It’s often considered a safe-haven asset, meaning investors may turn to it during periods of economic uncertainty, financial market volatility or geopolitical tensions.
The price of gold is influenced by several factors, including:
- Inflation expectations
- Interest rates and monetary policy
- US dollar movements
- Central bank purchases
- Geopolitical developments
- Supply from mining and recycling
Investing in gold stocks
Investing in gold stocks provides exposure to companies involved in the exploration, mining and production of gold.
The performance of gold mining companies may be influenced by changes in the price of gold. Gold mining companies may benefit from higher gold prices, as increased commodity prices can potentially support revenues and profit margins. However, company performance also depends on factors such as production costs, operational efficiency and management decisions.
Gold stocks can also provide exposure to different areas of the mining sector, including exploration activities, new mining projects and established producers.
Unlike direct exposure to physical gold, the value of gold stocks is influenced by both movements in the gold price and company-specific factors.
| Company | ISIN |
|---|---|
| Newmont Corp. | US6516391066 |
| Hecla Mining Co. | US4227041062 |
| Pan American Silver Corp. | CA6979001089 |
| Freeport-McMoRan INC. | US35671D8570 |
| Barrick Mining Corp. | CA06849F1080 |
Risks of investing in gold stocks
-
Gold mining companies are exposed to fluctuations in the price of gold, meaning a decline in gold prices may negatively affect their revenues and share prices.
-
Their performance may also be affected by company-specific factors, such as production challenges, rising costs, project delays, regulatory requirements and changes in management strategy.
-
Mining operations can also involve environmental and geopolitical risks, particularly in regions where companies operate.
-
Like all equities, gold stocks are also subject to broader market risks, including changes in economic conditions and investor sentiment.
Investing in Gold ETCs
In addition to individual gold-related stocks, you can gain exposure to gold through exchange-traded products.
Gold ETCs are designed to track the performance of the underlying gold commodity. Depending on their structure, these products may be backed by physical gold holdings or use other methods to track the performance of gold.
Here are some Gold ETCs available on our platform:
| Gold ETCs | |
|---|---|
| iShares Physical Gold ETC | IE00B4ND3602 |
| Invesco Physical Gold ETC | IE00B579F325 |
| Xetra-Gold | DE000A0S9GB0 |
| Amundi Physical Gold ETC | FR0013416716 |
| WisdomTree Physical Gold | JE00B1VS3770 |
Here are the most popular among our investors:
| Gold ETFs | |
|---|---|
| VanEck Gold Miners UCITS ETF (Acc) | IE00BQQP9F84 |
| VanEck Junior Gold Miners UCITS ETF (Acc) | IE00BQQP9G91 |
| iShares Gold Producers UCITS ETF (Acc) | IE00B6R52036 |
| L&G Gold Mining UCITS ETF (Acc) | IE00B3CNHG25 |
| SWC (CH) Gold ETF (Acc) | CH0139101593 |
Investing in Gold ETFs
You can also gain exposure to gold through Gold ETFs.
These products are designed to track a basket of gold-related assets, for example through a basket of companies involved in gold exploration, mining and production.
Gold ETFs can provide a way to gain exposure to the gold market without directly buying and storing physical gold.
Risks of investing in Gold ETCs
Gold ETCs have a different risk profile compared to investing directly in gold stocks or physical gold.
Depending on their structure, Gold ETCs may seek to provide exposure to the price of gold through physical gold holdings or other investment methods. As a result, performance may differ from the spot price of gold due to factors such as product structure, fees and associated costs.
You may also be exposed to counterparty risk, depending on how the product is structured.
Some leveraged and inverse Gold ETCs reset their exposure daily. This can create compounding effects over time, meaning their performance over longer periods may differ significantly from a simple multiple or inverse multiple of the change in the gold price. These products can amplify both gains and losses and are generally intended for short-term exposure.
Commodity markets can be volatile, and gold prices may fluctuate due to changes in interest rates, inflation expectations, currency movements and global market conditions.
Invest in gold
through DEGIRO
At DEGIRO, you can access gold-related investment opportunities, including gold stocks, Gold ETFs and Gold ETCs listed on international exchanges.
Through our platform, you can invest across global markets with competitive pricing and transparent fees. For more information, see our Fees page.
More than 100
international awards
We've been recognised as one of the best brokers in Europe thanks to our low fees, customer service and innovative platform and app.
Best Broker
Cash Cow 2025
5 star winner app
FT & IC 2024
Best Stock Broker
Rankia 2025
Best Neo Broker
Le Figaro 2024/25
Your investment
journey starts here
Open an account for free and join over 3 million investors on our user-friendly platform.
Gold FAQs
You can gain exposure to gold in several ways. One option is investing in shares of companies involved in gold mining and production through a trading platform such as DEGIRO. Another option is gaining exposure through Gold ETFs or Gold ETCs. Depending on their structure and investment strategy, Gold ETFs may invest in physical gold, gold-related equities or other assets linked to the gold market. Gold ETCs are exchange-traded products that aim to provide exposure to changes in the price of gold
Investing in physical gold involves owning gold bars or coins directly, which may require storage and insurance arrangements. Gold ETCs are exchange-traded products that aim to provide exposure to the changes in the price of gold. Depending on their structure, Gold ETCs may provide such exposure through physical gold holdings or other investment techniques, without requiring investors to directly purchase, hold or store physical gold themselves.
The price of gold may be influenced by several factors, including inflation expectations, interest rates, central bank purchases, US dollar movements, geopolitical developments and changes in investor demand.
Gold may provide diversification within an investment portfolio and is often considered a store of value during periods of market uncertainty. However, gold does not generate income such as dividends or interest, and its price can fluctuate over time. The risks involved also depend on the investment product used to gain exposure to gold.
Gold is often considered a safe-haven asset because investors have historically used it during periods of economic uncertainty and financial market volatility. However, there is no guarantee that gold will preserve its value or perform positively during such periods, and gold prices may rise or fall depending on market conditions.
Note:
Investing involves risks. You can lose your invested funds. This is not investment advice. Consider your knowledge and experience when making investment decisions.
Investing places your capital at risk. Read our full warning here.
