Investing in Physical Gold or Gold Futures?

There are pros and cons to both gold investment methods. Deciding how much to invest into physical gold and gold futures is something you should talk to your wealth manager about. Consider this pros-and-cons list a primer for that conversation.

The following information applies to physical silver and silver futures too.


Physical Gold Pros

  • easy to determine the value (alongside inflation)
  • easily accessible
  • useful in case of emergency
  • a valuable part of any investment portfolio

Physical Gold Cons

  • negative beta (best in bad times)
  • steep learning curve with different values for similar items based on item purity

Gold Futures Pros

  • numerous different options in investment
  • more wealth brokers work with futures
  • royalties may not reflect share decreases in mining assets
  • royalties are not affected by fluctuation of mining costs

Gold Futures Cons

  • increases are slower if spot metal prices go up
  • royalties may not reflect share increases in mining assets

We hope this helps you decide how much to invest in physical gold and silver, as well as precious metal futures.

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