The 5 Best Ways to Invest in Gold, the Classic Safe-Haven Asset
6 min read · · Korean original
Contents 5
The more the global economy swings, the more people start paying attention to gold again. Unexpected wars, soaring prices, shifting exchange rates. Amid this kind of uncertainty, people looking for a "safe asset" naturally tend to think of gold.
But gold investing these days isn't just about buying gold necklaces or gold bars like it used to be. Now you can buy gold in 1g units in an app from your brokerage, and even invest in the price of gold through ETFs.
In particular, using a regulated exchange like the KRX Gold Market can be a very efficient choice in terms of taxes as well. In this post, we introduce the 5 most practical and efficient ways to invest in gold. The key among them is a direct investment strategy centered on physical gold.
1. What Is the Best Way to Invest in Gold?
(1) KRX Gold Market
The Gold Market operated by the Korea Exchange (KRX) is, quite literally, a system that lets you trade "physical gold" just like a stock. You can invest starting from 1g, and it has the big advantage of no tax on trading gains.
| Item | Details |
|---|---|
| Trading unit | From 1g |
| How to trade | Brokerage app (MTS/HTS): uses a dedicated KRX account |
| Tax structure | No tax on trading gains; 10% VAT charged only when withdrawing physical gold |
| Physical storage | Held and managed by the Korea Securities Depository (safe, and uses gold certified by the Korea Minting and Security Printing Corporation) |
| Recent trend | As of the first half of 2025, trading volume increased more than 4x year over year |
The KRX Gold Market is an "official gold exchange" run by a trustworthy entity. It's one of the best ways to invest in gold, letting you buy and sell gold in the smallest units without tax.
(2) Gold ETFs
Gold ETFs let you buy and sell fund products that track the price of gold, just like stocks. You don't hold physical gold, but you can invest in its price movements, which allows for a flexible approach. Representative gold ETF products are as follows.
| ETF name | Asset manager | Total expense ratio | Underlying index | Features |
|---|---|---|---|---|
| ACE KRX금현물 ETF | Korea Investment Management | 0.50% | KRX Gold Spot Index | Large ETF (actively traded) |
| TIGER KRX금현물 ETF | Mirae Asset | 0.15% | KRX Gold Spot Index | Lowest fee |
| KODEX 골드선물(H) | Samsung Asset Management | 0.38% | COMEX Gold Futures Index | Currency hedged |
Gold ETFs are taxed similarly to other ETFs. For example, domestic gold ETFs are subject to a 15.4% dividend income tax, while overseas gold ETFs (GLD, IAU, etc.) are subject to a 22% capital gains tax (on amounts exceeding the basic deduction of KRW 2.5 million).
(3) Gold Accounts
A gold account is a service in commercial bank apps that lets you buy and sell gold in 0.01g units. The bank handles storage for you, and while it's convenient, it can be somewhat disadvantageous in terms of fees and taxes.
| Item | Details |
|---|---|
| Investment unit | 0.01g units |
| Tax | 15.4% dividend income tax; 10% VAT when withdrawing physical gold |
| Fees | Trading fees apply (vary by bank) |
| Features | The most accessible method, but you need to weigh the taxes and fees |
(4) Physical Gold Bars
You can also buy physical gold directly from jewelry stores, commercial banks, and so on. It's a somewhat old-fashioned method, but it has the advantage of letting you hold gold yourself. However, VAT is added, and there are theft and storage risks, so it isn't much preferred as a general investment method.
| Item | Details |
|---|---|
| VAT | 10% VAT charged on purchase |
| Tax | No tax on trading gains |
| Storage risk | Must be stored by the individual (risk of theft or damage) |
(5) Paxos Gold
Paxos Gold is a way to invest in gold using blockchain technology rather than traditional finance. It may be somewhat unfamiliar to most investors. 1 PAXG equals 1 ounce of physical gold, and the actual gold is stored in vaults in London.
Paxos Gold can be purchased on overseas exchanges such as Binance, and it operates as a blockchain-based token pegged 1:1 to physical gold. It's gaining attention overseas as an alternative way to invest in gold, but in Korea it's still not very accessible, so it's fine to just keep it in mind for reference.
2. Why Invest in Gold?
Since the dawn of human civilization, gold has been prized for its scarcity and permanence. That's because it doesn't oxidize, doesn't corrode, and suffers almost no physical damage.
Thanks to these properties, gold has kept its status not as mere jewelry, but as a store of value. Even today, central banks keep buying gold to increase their reserves, and individual investors also turn to gold as market instability grows.
"Gold investing" isn't the answer; it's just one piece of your portfolio. Approach it wisely, in a way that fits your situation and investment goals.
3. How Is the Price of Gold Determined?
The price of gold isn't determined simply by "how much gold was bought and sold." Global economic indicators, exchange rates, interest rates, geopolitical risks, and more all affect the price of gold. For example:
- Falling dollar value → gold price may rise
- Falling real interest rates → gold becomes more attractive
- Inflation concerns → demand for gold increases
- War, political instability → stronger preference for safe-haven assets
In fact, during the COVID-19 pandemic in 2020, the price of gold hit an all-time high. In late 2024, war issues in the Middle East caused gold prices to swing sharply once again, and as of 2025, gold is still continuing its strong run.
Wait! Did you know that the same gold price can differ depending on the exchange or product? Find out right now why gold prices differ.
Frequently Asked Questions (FAQ)
- Q1. Can you make a profit by investing in gold?
- It's an asset whose strength lies in "preserving value" rather than short-term returns. It's better suited to defensive investing than to chasing profits.
- Q2. What's the biggest difference between gold ETFs and physical gold investing?
- Whether you hold physical gold. ETFs invest in the price without physical gold, while spot trading means buying and selling the gold itself.
- Q3. How do I start investing in the KRX Gold Market?
- You can buy from 1g through the "Gold Market" menu in your brokerage app (MTS/HTS).
- Q4. What are the advantages of investing through a gold account?
- It's easy to access and good for small investments, but you'll pay relatively more in taxes and fees.
- Q5. Where can I check the price of gold?
- You can check it in real time on KRX, Korea Gold Exchange, each brokerage app, or Naver.
Wrapping Up
Thousands of years have passed since gold was first discovered. Today, gold remains firmly established as a trusted asset in global financial markets. Accordingly, many different ways to invest in it have emerged, and using the KRX Gold Market in particular is the best option in terms of convenience and tax savings.
However, gold is also a volatile asset, and it does not guarantee short-term returns. So it's important to fully understand the various ways to invest in gold, and then decide how to use gold within your own asset allocation strategy and level of risk management.
