How to Invest in Gold in Ireland.

Gold is often viewed by some as a safe haven in troubled times.
During 2020 we saw big rises in Gold prices as the spread of coronavirus fuelled demand for safe-haven assets.
The price of Gold hit a 20 year high in August 2020. ($2049 per Ounce).

For the past 12 months, the gold price has hovered between $1700 and $1900 an ounce.
In early October 2021 , the price of gold was around $1760 per ounce.

US Dollar Vs Gold Price

In general, the US dollar and gold prices have an inverse relationship. When the dollar is falling in value, gold prices tend to increase because it becomes cheaper to buy in other currencies. The demand for gold then increases and thus the price.
Gold prices tend to decrease when the dollar appreciates in value, as it becomes more expensive for foreign investors.

Interest rates also can have an effect on the price of gold . When rates rise it makes other forms of investment more attractive than gold and can result in gold prices falling.
When interest rates fall – it can have the opposite effect and gold prices can rise.

Gold should be seen as a long term investment, as a means of providing some protection from an unpredictable economic environment. Many advisers recommend having 10% to 15% of a  balanced portfolio held in Gold .

How to Invest in Gold in Ireland

Buying Physical Gold

One of the simplest ways for first-time investors to make a low-cost gold purchase is to buy by the gram. Because you own grams of a bullion bar and not necessarily the whole bar you cannot have it delivered  -so it is stored in a bullion vault. You can sell your gold grams at any time  (less some fees) so it is instantly accessible.  There are several companies offering to sell gold bullion in Ireland – just Google “Buy Gold in Ireland” to find a few.

Buy Gold on Revolut

It is possible to invest in gold and other metals on Revolut.
You can invest from as little as $1 Dollar to get started.
Only Premium and Metal account holders can trade Gold.
You won’t ever get to see the actual gold – but Revolut says that your “investment is backed by physical gold”.
Revolut’s price is derived from the Gold (XAU) market rate plus a small markup, which is currently 0.25% during market hours and 1% during out of market hours.

Gold CFDs on Etoro

Etoro was founded in 2007 and operates in more than 140 countries with over 11 million users.
Irish residents will use eToro (Europe) Ltd , a Financial Services Company authorised and regulated by the
Cyprus Securities Exchange Commission (CySEC) under the license 109/10.

The minimum deposit on Etoro is currently just $50 in Ireland and the UK – but this is sometimes increased temporarily at very busy periods.

Etoro allows people to invest (or speculate) in gold by using a “contract for difference” (CFD) . You won’t own any gold – but your gains or losses will be linked to the Gold price. CFDs can be highly risky and are better suited to advanced traders.
They allow customers to set up a “practice account” where they can try things out without using real money.

CFDs are not suitable if you are looking for a long-term investment. You need to have the time to monitor the CFDs carefully so you can respond to market changes.

You can Join Etoro Here.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
67% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

More about CFDs here

Spread Betting on Gold

Speculators can bet on the price of gold, and other commodities, using financial spread betting. This involves gambling on the direction of the purchase price of the metal, staking an amount per point that gold will move in price, either up or down. For example, if gold moves in the predicted direction, customers receive the amount of the price movement multiplied by their stake. But if it moves in the opposite direction, their losses are multiplied by the amount of the movement, so this can be a very risky game with a high risk of losses.

Irish residents can use Trade Nation for spread betting .

More information here about Spread Betting

Buying Gold Related Shares

You can also indirectly invest in gold by buying shares in gold mining companies. The value of gold mining shares will typically fluctuate up and down, closely following the price of gold.
Some examples of gold mining companies are:

  • Centamin
  • Fresnillo,
  • Randgold Resource,
  • Barrick Gold
  • SSR Mining.

One of the cheapest ways of buying shares in Ireland is through the online stockbroker DEGIRO .

See our comparison of share dealing fees and read more about How to Invest in Shares in Ireland

As with any investment in shares – Your capital is at risk

Gold Exchange-traded funds (ETFs)

Gold ETFs are gold securities that are traded on Stock Exchanges and you can buy and sell shares in them. They essentially track the gold price and can be traded daily through a stockbroker.

Some examples of gold-related ETFs are :
iShares Physical Gold and . Wisdom Tree Physical Gold ;

You can buy shares in these ETFs on DEGIRO

As with any investment in shares – there is a risk of loss.

The price or value of commodities such as gold can rapidly increase or decrease at any time. The risk of loss in exposure to commodities can be substantial. Investment in Gold will not be covered by any bank guarantee.

See more here about buying  ETFs in Ireland

See our comparison of share dealing costs and read more about How to Invest in Shares in Ireland

Some people seem to think that Bitcoin might be competing with Gold as another “safe haven” – more here about Buying Bitcoin in Ireland

This content is for educational purposes only and is not investment advice.