Gold ETF
Physical gold exposure without storage
"The oldest store of value in human history."
Avg. yearly return
2–7%
Volatility
Medium
Liquidity
High for ETF (1–2 days) / Low for physical (days to weeks)
Min. investment
From €50 (ETF) / From €100 (physical coins)
Gold has been used to preserve wealth for over 5,000 years. In the modern era, you can gain exposure to gold prices without physically owning bars or coins. Note: a true "gold ETF" does not exist in Europe — UCITS rules forbid single-commodity funds — so what you actually buy is a gold ETC (Exchange Traded Commodity), typically backed by real physical gold held in a vault. When gold prices rise, it rises with them. When crises hit — wars, financial collapses, hyperinflation — gold typically holds or increases its value while other assets fall. (More on the ETF-vs-ETC difference and the tax angle in our Gold-ETF vs Gold-ETC article.)
10-year price history
+147% (2015–2024)Starting value = 100 (index) · +10.6%/yr average (CAGR)
Indexed to 100 at the start of 2015. Based on the gold spot price, total return in USD. Gold had a strong decade (CAGR ≈ 11%/yr), boosted by 2024's record highs; long-term averages are typically lower. Past performance does not guarantee future results.
Risks to understand
No income
high riskGold pays zero dividends or interest. It is a pure store of value. In calm, growing economies, gold can underperform equities and bonds significantly for years at a time.
Price volatility
medium riskGold can lose 20–30% of value in periods of economic optimism (2013, 2021). It is not as stable as many people assume — it is volatile, just in a different cycle to stocks.
Currency risk
medium riskGold is priced in USD globally. If the dollar weakens, gold prices rise in dollar terms but the gain may be partially offset for EUR or GBP holders. EUR-hedged gold ETFs exist to address this.
Storage and counterparty risk
low riskA gold ETC is legally a bearer debt security, not a fund with segregated assets — so unlike a real ETF, you carry an issuer/counterparty risk. Reputable providers reduce this by backing the ETC with physical gold held in a vault (e.g. HSBC, JPMorgan). Check that the ETC is physically backed before you buy; for established products this risk is low but not zero.
How to invest in this asset
Buying a gold ETC is as simple as buying any other product through a broker.
Choose a physically-backed gold ETC (not synthetic)
Always buy a "physically backed" gold ETC — real gold bars held in a vault on your behalf. Avoid "synthetic" products that use derivatives. Tip: an ETC with a physical delivery claim (e.g. Xetra-Gold, EUWAX Gold II) is treated like physical gold for tax — in Germany, gains are tax-free after one year.
Check the product and its cost (TER)
Examples of physically-backed gold ETCs: iShares Physical Gold (IGLN), Invesco Physical Gold (SGLD), WisdomTree Physical Gold (PHAU). Watch the expense ratio — a TER under 0.25% per year is cheap; higher fees eat into returns noticeably over time.
Keep it to 10–20% of your portfolio
Gold works best as insurance, not as a primary investment. Most advisors suggest holding around 10–20% in gold as a defensive hedge for effective diversification.
Buy and hold calmly
The most common mistake is emotional: selling in a panic when prices drop and buying more when they spike — exactly backwards. Set your allocation and hold it over the years. Gold's value shows over the long run.
Providers and platforms
iShares (BlackRock)
ETF provider · Min. Via broker · FCA, multiple
iShares Physical Gold ETC (IGLN) — one of the largest, most liquid gold ETFs in Europe.
Invesco
ETF provider · Min. Via broker · FCA, multiple
Invesco Physical Gold ETC (SGLD) — very low annual fee of 0.12%.
WisdomTree
ETF provider · Min. Via broker · FCA (UK)
WisdomTree Physical Gold (PHAU) — established since 2006, fully allocated physical gold.
Degussa
Physical gold dealer · Min. €100 · German trade law
Reputable physical gold dealer. Buy gold coins or bars for direct ownership. Offices in Germany, Switzerland, Spain.
Perth Mint
Physical gold dealer · Min. €200 · Government of Western Australia
Government-backed gold dealer. Sells coins and bars internationally. Also offers online gold accounts.
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Find my best option →All information on this page is educational only. Historical data does not guarantee future results. Provider links are not affiliate links. Always consult a licensed financial advisor before investing.