How to Invest in Gold
As a professional investor, one of the most common questions I get asked is, “How do you invest in gold?”
Whether you’ve already got investments in stocks and commodities, or you’re completely new to the investing landscape, figuring out what to do can be daunting.
There’s a deep fear that you’ll make the wrong choice and make no money or, worse still, lose some.
I’ve been exactly where you are, and I made some mistakes early on in my investing journey. But after years of experience, I’ve not only made some steady returns, but also a life-changing amount of money investing - which I’ll share with you later.
The good news is that you don’t need to be an expert to know how to invest in gold. But it helps if you’ve got a system that helps you make your investment decisions. Which is where my Gold Program comes in.
It’s not about knowing the right moves; it’s about making them. The Gold Program is all about BOTH.
That’s what the system is for. With the Gold Program you get a Workbook which is a vital component, because it helps you check that you’re using the system correctly.
Putting a portfolio together of different gold investments sounds really easy.
But it’s not.
Anyway, let’s have a look at some of the routes you can take to invest in Gold.
Related: Can I Have Gold in My Pension?
Investing in Physical Gold
Buying physical gold is one of the most direct ways to invest in gold.
It’s easy to buy it through a reputable dealer. You don’t have to take delivery but can buy gold and get it stored and insured away from your home. The dealer you bought it from can often do this (make sure they offer this service before you buy it).
Choosing a Dealer
Look for affiliations with reputable bodies like:
The London Bullion Market Association (LBMA)
The British Chamber of Commerce
Also, check how long they've been operating, and don’t hesitate to call them directly to learn about their services.
Pensions and Tax
Some people buy physical gold for pensions or tax planning. For example, certain gold coins are Capital Gains Tax (CGT) exempt; something to consider if CGT is a concern for you.
I’ve written a separate blog on Gold and Pensions and you should speak with your tax adviser if you’re thinking of using it as part of your tax planning.
Personally, I use The Pure Gold Company.
Important: Please carry out due diligence on whoever you choose to use.
Investing in Funds
Mining company funds
Funds cover those that comprise mining companies as well as ETF’s.
In the case of mining company funds, these give you exposure to many different mining companies, so can be a good way of “smoothing out” the returns as the share prices of individual mining companies can be quite volatile.
Some examples include:
Blackrock World Mining Trust plc
LF Ruffer Gold Fund
Jupiter Gold & Silver Fund
ETF funds
There are two main types of gold ETFs you should know about when investing in gold:
Price-tracking ETFs – These follow the price of gold directly.
Company-focused ETFs – These hold shares in gold-related businesses.
Here, I’m focusing on price-tracking ETFs, which are ideal for short-term exposure or tactical positioning in your portfolio.
I am going to focus on the former as I’d be inclined to use a more conventional mutual fund for the latter because they typically actively manage their strategies. All funds are different and I’d suggest you find out how (whether) the fund you’re thinking of investing in is actively managed or not.
In the case of ETF’s, there are many different types and you need to pick one that suits you. These can be a particularly useful way of getting short term exposure to Gold if that’s what you’re looking for (the costs of buying and selling can be very competitive).
Examples of ETFs would be:
SPDR Gold Shares
iShares Gold Trust
Abrdn Physical Gold Shares
Investing in Cryptos
This is obviously a relatively new area. Although some cryptos are backed by Gold, personally I’d rather invest in either the Gold itself or a crypto. All I would say is I’d feel more comfortable investing in a large established crypto such as Bitcoin (which although it’s depicted as a Gold coin (!) is not backed by Gold), rather than a much smaller crypto that I don’t know much about.
That said, if you’re curious, here are a few gold-backed cryptos:
PAX Gold
DigixGlobal
Tether Gold
Investing in Mining Shares
This is where things get really interesting—and where I believe the system that I use with The Gold Program adds tremendous value.
There are many different types of mining companies. The large “multinational” companies invariably have lots of different mines as well as operate in several different countries. Although they might predominantly produce one metal, invariably they have several.
In the Gold Program system, I use a Fantasy Football set up to explain how they system works and these are my Goalkeepers.
The smaller (but often still very large) producers often focus on one or two countries and/or commodities. The have often been operating for many years and I’d view them as defenders in my set up.
The next tier are smaller still (but still producing) and tend to be higher risk because they’re often either relatively new to production or only produce one commodity (often from one mine). These would be the midfielders using the fantasy football format.
Finally, you have the explorers (the forwards in my set up). These vary enormously in terms of where they are in the exploration process (some have already made major discoveries, whilst many haven’t). Some are therefore a lot riskier than others.
Although both have the potential to deliver life changing returns if they make a major discovery, they are both very high risk because they’re not in production and therefore consuming rather than producing cash.
Anyway, here are two companies that did very well.
If you invested £1,000 into Chalice or £1,000 into WA1 Resources you could have changed that into £88,910 and £119,000 respectively.
Not bad, eh!
Imagine what you could do with that – especially if it was in a tax efficient vehicle – such as an ISA.
Take a look at these graphs:
I invested in Chalice and it changed my life. I can now afford many things that were previously way beyond my wallet. It’s not only benefited me, but my family as well (I can afford a private education for my daughter).
I must confess, as I’ve got older, I’ve opted for the lower risk options when I invest in gold, and I’m happy with a less spectacular return, but I do have a few positions in these higher risk plays.
I like the fact that the vast majority of my portfolio is in what I’d view as lower risk situations (where I’m looking to steadily grow my wealth), but it’s nice to have a few positions that could explode and change my life, if things work out well.
Investing in mining companies is very much a specialist area where I feel I can add a lot of value with The Gold Program system because it not only provides you with a list of companies to choose from, but also the criteria that I (a professional investor) use to make my selections.
Especially in terms of these higher risk plays, there are certain things you can look out for which increase the chances of a project being taken forward if a significant discovery is made. I help you do that.
Related: How Can I Try and Get Over a 10.6% Return on My Money?
Ready to Invest in Gold with Confidence?
With my proven system, you won’t just get a list of gold companies to invest in. You’ll learn why each one made the cut, and the exact criteria I use to build a portfolio that balances growth and long-term security.
This isn’t about guesswork — it’s about building a strategy that could transform your financial future.
If you're serious about getting started, join my gold investing program, where I’ll guide you step by step to create a custom portfolio designed to fit your goals.
