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 $2036 per Ounce) in July 2020.
On Dec 4th 2023 the price of gold hit an all-time new high of $2113 .
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 affect 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. Several companies are offering to sell gold bullion in Ireland – just Google “Buy Gold in Ireland” to find a few. (Goldcore, Merrion Gold , Goldbank)
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 is an online trading website founded in 2007 that 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) .
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.
Etoro allows customers to set up a “practice account” where they can try things out without using real money.
You can deposit Euro without any currency conversion fees by using the Etoro Money App. If you deposit Euros by bank transfer – there will be a 0.5% fee to convert it to US Dollars. Read more about Etoro Fees here.
You can Join Etoro Here.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
76% 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.
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 very risky with a high risk of losses. (There is no tax on the profits of spread betting in Ireland.)
Irish residents can use Trade Nation for spread betting .
Trade Nation is authorised and regulated by the Financial Conduct Authority in the UK.
86% of retail investor accounts lose money when trading CFDs with this provider.
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:
- Randgold Resource,
- Barrick Gold
- SSR Mining.
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 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 ;
These ETFs and several other gold-related ETFs are available on Trade Republic .
Trading fees are just €1 and you can set up automated savings plans for free and buy fractional ETFs . t
You can also buy shares in a few Gold ETFs on DEGIRO
As with any investment in shares – there is a risk of loss.
See more here about buying ETFs in Ireland .
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. Any bank guarantee will not cover investment in Gold.
See our comparison of share dealing costs and read more about How to Invest in Shares in Ireland
You might also be interested in Buying Fractional Shares
Some people used to think that Bitcoin could compete 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.