4 ways to invest in gold

Gold surged above $4,000 an ounce to hit a record last Wednesday and continued to trade at a high of $4,017 Saturday, driven by investors seeking safety from mounting economic and geopolitical uncertainty, alongside expectations of further interest rate cuts by the U.S. Federal Reserve.

An investor holds Gold Bullion, often referred to as bars of Gold, in Bangkok, Thailand, on September 11, 2025. Photo by AFP

Bullion, which typically performs well when interest rates are low, has risen 52% this year, which in addition to geopolitical and economic uncertainty has been driven by central bank buying, monetary policy easing and a weaker dollar.

Here are the different ways to invest in gold:

Spot market

Large buyers and institutional investors usually buy gold from big banks. Prices in the spot market are determined by real-time supply and demand dynamics.

London is the most influential hub for the spot gold market, largely because of the London Bullion Market Association. The association sets standards for gold trading and provides a framework for the over-the-counter market, facilitating trades among banks, dealers, and institutions.

China, India, the Middle East and the United States are other major gold trading centers.

Futures market

Investors can also get exposure to gold via futures exchanges, where people buy or sell a particular commodity at a fixed price on a particular date in the future.

COMEX (Commodity Exchange Inc), part of the New York Mercantile Exchange, is the largest gold futures market in terms of trading volumes.

The Shanghai Futures Exchange, China's leading commodities exchange, also offers gold futures contracts. The Tokyo Commodity Exchange, popularly known as TOCOM, is another big player in the Asian gold market.

Exchange-traded products

Exchange-traded products or exchange-traded funds issue securities backed by physical metal and allow people to gain exposure to gold prices without taking delivery of the metal itself.

Exchange-traded funds have become a major category of investment demand for the precious metal.

Inflows into physically-backed gold exchange-traded funds are $64 billion so far this year, according to data from the World Gold Council, with a record $17.3 billion in September alone.

Bars and coins

Retail consumers can buy gold from metals traders selling bars and coins in a shop or online. Gold bars and coins are both effective means of investing in physical gold.