Invest In Gold Philippines – Investing in Gold Beginner’s Guide 2021
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Investing in precious metals has long been regarded as a solid investment strategy as they tend to offer some degree of intrinsic value and provide a good hedge against inflation. Gold is one of the most expensive precious metals and certainly the most popular, both for investors and in the jewellery market. Seen as a fairly stable investment, gold is the perfect asset to store large sums of money in, especially when you consider all the different ways you can invest in gold. To help our readers dip their toes into the world of gold investing, we’ll be breaking down some of the pros and cons to investing in gold, the best brokers, and we’ve even provided a step-by-step guide that details exactly how you can make your first investment in gold.
Table of Contents
#1 Broker to Invest in Gold Philippines- eToro
1
Mobile AppYes
How to Invest in Gold – Step by Step Guide 2021
Some people may already be sure they want to invest in gold and are just looking for a quick and easy guide on how to invest in gold right now. If that sounds like you, we’ve got you covered! Below, you can see our quick guide explaining how to invest in gold, however, if you’d prefer a more comprehensive guide, you can find that toward the button of the page.
- Step 1: Open an eToro account: Prior to making your first investment, you’ll need to register with a reputable brokerage. We recommend eToro as they offer an excellent trading experience. Just type “eToro.com” into your browser, press “Join Now” and fill in the required fields.
- Step 2: Verify your Identity: Once you’ve completed the initial sign-up process, you’ll need to verify your account. This is because eToro is a regulated broker. Luckily, the verification process is quick and easy, all you’ll need is a photo ID (passport, driving license) and proof of address (bank statement, utility bill).
- Step 3: Fund your Account: After your account has been verified, you’ll need to fund it. To do this simply click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill).
- Step 4: Invest in Gold: Now that your account has been funded, it’s time to purchase your first gold share. Just type “gold” into the eToro search bar, press “Open Trade”, enter the amount you’d like to invest, and press “Deposit”. You’ll be able to manage your investment from the “Portfolio” section of your account.
Choose a Broker
One of the most important aspects of investing is finding a trustworthy broker that comes equipped with all the features you may need to successfully execute your trading strategy. Unfortunately, there are thousands of brokers out there and many offer a subpar trading experience or charge ridiculous fees. So, to help our readers get started on the right foot, we’ve brought you a series of in-depth reviews on the three best gold brokers currently available for investors.
1. eToro – All-in-All Best Gold Broker Philippines
Currently serving over 20 million users, eToro is one of the largest brokerages in the world. They offer investors a phenomenal trading experience and solid security. Overall, if you’re looking for a world-renowned gold broker with a 15-year track record then you should be right at home with eToro.
Security
The backbone of every brokerage is its security systems, without top-notch security, a brokerage would likely get heavily exploited resulting in steep losses. To prevent this from happening eToro employees use a few different strategies. The first is adhering to regulations laid out by the FCA, ASIC, and CySEC which are designed to protect investors and their funds. Another way eToro protects its users is with SSL encryption, a technology that obscures sensitive data before it leaves your device and travels over a network. Additionally, eToro allows its users to enable 2-factor authentication, which requires you to input a code sent to your mobile device before you can complete sensitive account actions.
Features
Regardless of your experience level, you’ll be right at home with eToro. This is because they offer features that will be useful to investors of every skill level. For example, eToro allows users to invest in something called CopyPortfolios, which are similar to an ETF but differ as rather than investing in a fund, it’s more akin to opening multiple positions. This can be perfect for investors looking to diversify without the time to open hundreds of positions manually. CopyTrading is another interesting feature offered by eToro, it allows investors to automatically mirror the trades of experienced users. This results in an easy-to-setup passive income stream, perfect if you’re just starting out. On top of all this, eToro provides all the trading tools you’d expect from a market-leading brokerage, along with heaps of educational material. Overall, no matter your level of experience or investment goals, eToro is an excellent choice.
eToro Fees
| Fee Type | Fee Amount |
| Gold Spread | 45 Pips |
| Commision Fee | 0% |
| Deposit Fee | $0 |
| Withdrawal Fee | $5 |
| Inactivity Fee | $10 (Monthly) |
Pros
- Regulated
- 15-year track record
- SSL-Encryption
- CopyPortfolios
- CopyTrading
- Solid Charting Tools
Cons
- Lacking Support for MetaTrader
- Missing a Few Useful Technical Indicators
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Best Gold CFD Broker Philippines
Over the past few years, Capital.com has gone from being relatively unknown to a major CFD broker that serves over 1 million users. This feat has been achieved by providing investors with a refined, simple, and secure trading platform that comes equipped with all the features you might find yourself needing.
Security
If there’s one area Capital.com excels in, it’s security. They’ve made sure customer data is handled by the least amount of people possible and have also implemented some advanced security technology. One way they make sure customer data is kept safe is by following strict rules set up by PCI Data Security, a leading body that provides guidelines on the correct way to handle data. Additionally, Capital.com uses Transport Layer Security to obscure sensitive information before it’s sent to the Capital.com servers, this prevents any bad actors from intercepting client data.
Features
It’s immediately clear from its interface that Capital.com is a modern trading platform. The interface is easy to navigate and doesn’t have any overly hidden menus. Capital.com has included a massive amount of educational resources, including an app called Investmate. By offering advanced trading tools and guides on how investors can best use them, Capital.com has positioned itself nicely as a platform aimed at those with an intermediate level of trading experience.
Capital.com Fees
| Fee Type | Amount |
| Gold Spread | 0.3 Pips |
| Commission | 0% |
| Withdrawal Fee | $0 |
| Deposit Fee | $0 |
| Inactivity Fee | $0 |
Pros
- Transport Layer Security
- PCI Data Security Standards Compliant
- Investmate
Cons
- Limited to CFD Trading
76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
3. AvaTrade – Most Accessible Gold Broker Philippines
The oldest platform on our list, AvaTrade has been operating since 2006 and in that time has grown to serve over 2 million users. Although the AvaTrade UI is becoming a tad dated, the platform more than makes up for it with its accessibility and heaps of useful features.
Security
It makes sense for the longest-standing platform on our list to have excellent security, after all, without it, the chances are they would’ve been hacked long ago. AvaTrade follows strict regulations laid out by authoritative bodies including the FCA to ensure safety for their clients. 256-bit SSL encryption is also utilized to prevent client data from falling into the wrong hands, by rendering the data unusable to anyone with the description key. And lastly, AvaTrade protects sensitive documents (card info, identity documents, etc) using McAfee Secure. As it could be disastrous if this information fell into the wrong hands, it’s a very welcome additional layer of protection.
Features
Along with excellent security measures, AvaTrade is also packed full of useful tools to help investors make the most out of the platform. Rather than focusing all its efforts on a single platform, AvaTrade instead, goes the route of creating a variety of trading platforms, each specializing in a specific area. For example, AvaOptions is a dedicated options trading platform, AvaTradeGO is their mobile trading app, and ZuluTrade is AvaTrade’s automated social trading platform. Along with offering specialized trading platforms, AvaTrade allows users to register for several different accounts based on their trading needs, you can sign-up for a standard AvaTrade account, a professional account, or an Islamic account. This means that no matter your goals, you should be right at home with AvaTrade.
AvaTrade Fees
| Fee Type | Fee Amount |
| Gold | 0.34 Pips |
| Commission Fee | 0% |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
| Inactivity Fee | $50 after 3 months & $100 after 12 months |
Pros
- Regulated
- AvaTradeGO
- AvaOptions
- ZuluTrade
- 256-Bit SSL Encryption
- McAfee Secure
Cons
- UI a Bit Dated
Your Capital is at Risk.
Invest in Gold – Broker Price Comparison
When you’re unsure which broker is best for your needs, it can be difficult to make a decision. You might like the sounds of all the brokers we’ve discussed, making it easy to get lost in the selection process. Which is why we’ve included this handy table comparing the fee structure of each of the best gold brokers.
| Broker | Commission | Deposit Fee | Withdrawal Fee | Inactivity Fee |
| eToro | 0% | $0 | $0 | $10 monthly (after 12 months inactivity) |
| Capital.com | 0% | $0 | $0 | $0 |
| AvaTrade | 0% | $0 | $0 | $50 after 3 months & $100 after 12 months |
What are Gold Stocks?
Do you want to invest in gold but don’t want to deal with the hassles of physical gold? If so, then investing in gold stocks might be exactly what you’re looking for! Gold stocks are far easier to trade and store than physical gold and on top of that, there are even a few different ways you can invest in gold stock. So regardless of your trading strategy, there will be a type of investment that works for you.
ETFs (Exchange-Traded Funds)
Outside of directly investing in gold at spot price, you’ve got a few different options to choose between when it comes to how you want to invest. The first we’ll discuss is investing in something called an exchange-traded fund (ETF). When you invest in an ETF, you’re essentially purchasing a bunch of related stocks that have been bundled together by a fund manager or brokerage. Generally, an ETF offers a more stable, lower-risk alternative to direct investment as it provides exposure to multiple companies, meaning if one experiences negative growth, the others should balance out your losses. You should be aware that although an ETF provider usually passes dividend payments onto investors, you’re not buying the underlying assets and as such won’t receive voting rights.
CFDs (Contract For Difference)
If you’d like to try your hand at day trading or simply would prefer short-term leveraged investments, then investing in a CFD could be what you’re looking for. A contract for difference or CFD is considered a speculative investment. This is because rather than purchasing an asset, you’re instead speculating on if it will increase or decrease in value. Because CFDs are short-term investments you’ll usually need to use leverage to take advantage of small price swings (unless you have significant capital). While leverage is a powerful tool, it’s advisable to only use it if you fully understand the risks involved as it can result in investors losing more than they were prepared to. When investing in a CFD you do not own the underlying assets.
Best Ways to Invest in Gold
As we’ve discussed, there are plenty of ways you can invest in gold, however, the best option for you will vary depending on your trading strategy and goals. Therefore it seems fitting we provide a breakdown of the type of investor each investment type is best suited to.
Invest in Gold Bullion
For some, nothing beats investing in something tangible. Unfortunately, in the modern world, not many assets fitting these criteria are available to investors. However, the precious metal sector is an exception. You have the option of buying gold bullion either online or from a high street broker, both methods achieve the same result. Investing in gold bullion is perfect for anyone that wants to hold gold for the long-term, isn’t planning on frequently buying & selling, and has the facilities to store it.
Invest in Gold Stocks/CFDs/ETFs
Outside of investing in bullion, you have the option of purchasing a gold stock. These usually come in the form of either stocks, CFDs, or ETFs. Once again, the best option for you will depend massively on your investment strategy, however, we have provided a brief explanation on who can best benefit from each investment type.
Stocks: Want direct exposure to gold and plan on holding it for a while? Investing in gold stocks might be exactly what you’re looking for. Because gold stocks provide direct gold exposure, any changes in the market will affect your investment far more drastically than something like an ETF. That being said, this also means that if the market goes in your favor you can enjoy greater returns. Overall, if you have faith in the long-term performance of gold, investing in gold stocks is an excellent option.
CFDs: If a long-term investment isn’t for you, then you may be better served by investing in a CFD. This is the perfect option for anyone wanting to take advantage of quick price swings. Due to the inherent volatility of the stock market CFD investing can be a great option to earn day-to-day profits. That being said, because CFDs are seen as speculative and commonly leveraged, they are considered a higher-risk investment.
ETFs: An ETF offers a great long-term investment opportunity while minimizing the amount of risk you’re taking on. Because an ETF provides exposure to a range of companies/assets, they’re excellent for long-term hold where the investor wanting cannot afford to take a greater risk.
Is Gold a Good Investment?
Gold has long been viewed as a solid investment, partly due to its demand and partly due to the intrinsic value it holds. Because of this, investors have always been interested in gold and the benefits it offers. Below, you can find our rundown on some of the advantages of investing in gold.
Finite Resource
Only so much gold can be pulled out of the earth, leaving us in a predicament. The demand for gold continues to increase and the supply cannot keep up, hence why prices have been driven up over the years. As the population continues to increase, it would make sense that the demand for gold would continue increasing, leaving only one direction for the price to go.
Easy to Trade
Although largely forgotten about now, there was a time when most currencies were backed by gold and nations would have large sums of gold reserved in the national bank. However, this practice has mostly fallen out of use now with the majority of currencies not being backed by anything other than people’s faith in the issuing government. Luckily, gold is still easy to trade and can be used as an alternative form of payment in many upscale establishments, even if they might not advertise it. This makes it an excellent option for investors worried about cashing out.
Investing in Gold – What are the Risks
If you’re looking for an investment that comes with no risk, you’ll be hard-pressed finding one. Every investment carries some form of risk, after all, as the saying goes with risk comes reward. That being said, gold is typically regarded as a fairly low-risk investment, although if you choose to invest in a leveraged instrument (CFDs, etc), this becomes somewhat less true.
Disappointing Performance
Despite gold’s status as a stable, long-term investment, its performance over the last decade has left a lot to be desired. In early 2012, the price of gold was around $2100, however, almost 10 years later in 2021, the price of gold is around the $1800 mark. This isn’t great news for investors, especially those with a large portion of their capital tied up in gold. Overall, while the price of gold is likely to recover, your money can potentially be put to work far more efficiently by investing in companies like Amazon or Tesla. Both of them have experienced parabolic price movements in the same time frame.
Storage
Something that can be easy to overlook is how you plan on storing your gold. Although this won’t be an issue if you’re investing in gold stocks, if you want to buy bullion it’s a factor that warrants careful consideration. It’s unsafe to store large amounts of gold in the house you sleep in, which is why many investors use safety deposit boxes to hold their gold. However, a safety deposit box isn’t free and the cost of one can quickly eat into any profits you would’ve otherwise earned.
How to Invest in Gold with eToro
Before you can start investing, you’ll need to set up an account with a trusted broker. To help guide you through this process we’ve provided a detailed explanation of exactly how to invest in gold. The whole process can be completed quickly, meaning you can start investing today!
Step 1: Open an account with eToro
The first thing you’ll have to do before you can invest, is register with eToro. To do this simply type “eToro.com” into your browser’s search bar, press “Join Now”, and fill in the required fields. eToro uses SSL encryption to ensure your data remains safe.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Verify your account
Once you’ve completed the initial registration process, you’ll need to verify your account. This is because eToro is a regulated brokerage and has to comply with strict rules surrounding the protection of its customers. The documents you’ll need at hand are a photo ID (passport, driving license) and proof of address (bank statement, utility bill).
Step 3: Fund your account
Now that your account has been verified, you’re almost ready to invest! All that’s left to do is fund your eToro account. Luckily, this process is quick and simple. All you’ve got to do is click on “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill).
Step 4: Buy some gold!
After your account has been funded, it’s time to purchase some gold! To do this just click on eToro’s search bar, type in “gold”, click “Trade”, enter the amount you want to invest, and press ‘Open Trade”. You’ll be able to manage your investments from the “Portfolio” section of your eToro account.
Conclusion
In summary, for years gold has been viewed as a smart investment that offers high liquidity and stable growth. Despite this, many assets have outperformed it by a wide margin over the past decade. However, that doesn’t mean gold is dead in the water, in fact, now that the price of gold has consolidated seemingly on its way back up. This means it could be an excellent time to get your foot in the door and invest in gold before prices climb back up to 2012 highs. While some investors prefer physical gold, the storage costs associated with it can put some people off. If you’re in this boat, then gold stocks might be more up your alley. The one caveat with gold stock is because you’ll be investing for the long-term, you’ll need to ensure your broker will also stand the test of time. Because of this, we recommend investing using eToro, they’ve been around for almost 15 years and are trusted to look after investments by millions. Overall, investing in gold offers stability and excellent long-term potential.
Best Gold Brokerage- eToro
1
Mobile AppYes
FAQs
Who’s the Best Gold Broker?
What is a Gold CFD?
What is a Gold ETF?
Should I Invest in Gold Bullion?
Gold Bullion vs Stocks
