Invest in gold: Best brokers 2025

How to invest in gold

Investing in physical gold

Buying physical gold means purchasing coins or bars, which you then store securely, either at home (with adequate security) or in a professional vault. The process involves selecting a reputable dealer, choosing the form and weight of gold, transferring funds, and arranging delivery or secure storage. You own a tangible asset free from counterparty risk, but must account for storage costs and insurance.

Gold Investment Example

💡 Example: You buy a 100g gold bar at NZD 120 per gram, costing NZD 12,000. You store it with a vaulting service that charges NZD 250 per year. If gold rises to NZD 140/gram over two years, your bar is then worth NZD 14,000, but you have paid NZD 500 in storage fees during that period.

Investing via ETFs and sector company stocks

Investing through gold ETFs or mining stocks provides a flexible, liquid way to gain exposure to gold price movements. ETFs track the gold price and are traded like shares, without the need for physical storage. Mining stocks offer leveraged exposure to gold prices and may pay dividends but are also affected by company performance and general stock market trends. Both methods enable easy entry/exit and are suitable for a dynamic investor.

Example:

You buy NZD 10,000 of a gold ETF at NZD 50/unit. After one year, the ETF trades at NZD 60/unit and you sell your holding for NZD 12,000. Your profit is NZD 2,000, minus brokerage fees (e.g. NZD 30 per trade). If you buy gold mining shares, strong company profits could result in dividend payouts as well.

Investing in gold with derivatives

Trading gold derivatives such as CFDs or futures appeals to those seeking leverage and the ability to profit from both rising and falling gold prices. These products allow you to take significant positions with a fraction of the capital but come with the risk of amplified losses. Active monitoring and risk management (like stop-losses) are crucial, and trading costs such as spreads, funding, and commissions can apply.

Example of a CFD Trade

Example: You open a CFD position to “buy” 10 ounces of gold at NZD 3,400/oz with a 10% margin, requiring NZD 3,400 capital. If gold rises to NZD 3,600/oz, your profit is (NZD 200 x 10) = NZD 2,000 (minus commissions and funding costs). If gold falls, losses are similarly magnified and could exceed your deposit.

How to choose the best broker to invest in gold

The best broker for investing in gold in New Zealand depends on your preferred investment method and personal financial goals. Whether you are interested in holding physical gold, gaining exposure through ETFs and shares, or trading through derivative products, the right intermediary will match your needs for cost, security, and service. Understanding what to look for in a broker is crucial to a positive investing experience and strong portfolio performance.

Best broker for physical purchase

A suitable broker or dealer for purchasing physical gold (such as bars or coins) should offer reliable, verifiable gold products, transparent pricing, and clear policies on storage and delivery. Physical gold investors need to consider safety and liquidity just as much as price and convenience.

• Sell only LBMA-accredited (or reputable local equivalent) gold products
• Transparent pricing with clear breakdown of premiums and fees
• Secure delivery options or insured local collection
• Clear policies and options for storage (self-storage, vaulting, safety deposit box)
• Good reputation and positive client reviews
• Responsive, accessible customer service
• Compliance with local rules and anti-money laundering requirements

Expert advice

Always check that your chosen gold dealer is regulated by New Zealand authorities or recognised international industry groups. Reliable customer support and competitive pricing are essential. Avoid dealers with unclear storage terms or unverified product sources.

Best broker to invest in ETFs and sector company stocks

If you want to invest in gold via ETFs or sector stocks, the best broker will give you access to global markets at low cost, support multiple account types, and provide quality tools for order execution and research.

• Regulation by FMA in New Zealand (or recognised cross-border regulation)
• Access to NZX and international exchanges for ETFs and mining shares
• Low trading commissions and transparent fee structure
• Reliable, easy-to-use trading platform for shares and ETFs
• Comprehensive research tools and real-time data
• Investor education resources and portfolio tracking features
• Fast and responsive customer support

Expert advice

It is vital to verify your broker’s regulatory status and ensure their platform fits your needs in terms of fees, usability, and support. Choose those with solid local presence or a proven track record in global equity and ETF trading.

Best broker to trade gold with derivatives

For speculative trading or hedging using gold derivatives (such as CFDs or futures), your choice of broker should focus on market access, costs, platform capabilities, and robust risk management features.

• Proper derivative trading authorisation and FMA regulation or robust overseas oversight
• Access to global gold derivatives markets and a wide range of products
• Leverage offering and margin terms clearly explained
• Tight spreads and low commission rates
• Advanced trading platform with real-time charting and order management
• In-built risk controls (such as stop-losses and negative balance protection)
• Efficient order execution, especially during high market volatility
• Excellent customer support, preferably with 24/5 or better availability

Expert advice

Only use brokers who are strictly regulated, offer strong risk management features, and are transparent about all costs. The quality of technical support and the trading platform’s reliability are key considerations for derivative traders.

Why invest in gold?

Gold remains an attractive asset for investors in New Zealand who are looking to protect and grow their wealth. Its reputation as a reliable store of value stretches across centuries, offering unique benefits in times of uncertainty, market volatility, or rising inflation. Gold’s global demand and historical resilience make it a strategic component in diversified portfolios, appealing to both conservative and growth-focused investors.

• Safe haven asset: Gold is trusted worldwide for preserving wealth during market downturns or geopolitical crises.
• Inflation hedge: Gold has a track record of maintaining purchasing power as currencies weaken and living costs rise.
• Portfolio diversification: Gold’s low correlation with stocks and bonds helps reduce overall portfolio risk.
• High liquidity: Gold can be easily bought or sold almost anywhere in the world, ensuring access to value when needed.
• Long-term value growth: Despite short-term volatility, gold has shown the ability to generate strong returns over time.
• Central bank backing: Ongoing central bank purchases provide strong, structural demand.

Gold’s enduring strengths and consistent price appreciation highlight its ability to preserve and grow capital over the long term.

The fees associated with investing in gold

Before investing in gold, it's essential for New Zealand investors to understand the full range of fees that can apply. Costs can add up quickly—whether you’re purchasing physical gold, buying gold ETFs or mining shares, or trading gold through derivative products. Being aware of these potential charges helps you compare investment methods and avoid unwelcome surprises, allowing you to maximize your returns and make informed decisions.

Buy/Sell Commissions

When you invest in gold, you might pay a buy or sell commission each time you transact. These charges vary depending on the method:

• On physical gold, most dealers charge a flat commission or a premium per bar or coin—often in the range of $40–$100 per trade.
• For ETFs or gold mining stocks, NZ brokers typically charge a fixed fee ($10–$30) or a small percentage of the trade value.
• With derivatives (CFDs, futures), brokers may charge a commission per contract, such as $10 per round trip (buy and sell combined), or a smaller per-side fee.

Real Example:

If you buy a 1-ounce gold bar for $3,400, you might pay a $50 commission to your bullion dealer—making your total cost $3,450. If you buy $5,000 worth of a gold ETF through a broker, a $20 commission would bring your investment to $5,020.

Brokerage Fees

Brokerage fees are ongoing charges that can depend on the platform:

• Physical gold bought directly from a dealer often does not come with ongoing brokerage fees, but could have ongoing storage costs instead.
• For ETFs or stocks, brokers may apply a brokerage fee per trade, usually ranging from 0.1% to 0.3% of the transaction amount.
• On derivatives, you might pay a much lower percentage (such as 0.02%), but frequent trading can make these costs add up.

Real Example

Buying $10,000 in a gold mining stock with a 0.2% brokerage fee costs you $20. Trading a $100,000 gold CFD contract with a 0.02% fee means you pay $20 per side.

Spreads

The spread is the difference between the buying (ask) and selling (bid) price, and represents a hidden transaction cost:

• Gold dealers typically set selling prices 1–3% above spot (market) price.
• ETF or stock spreads are usually much tighter, often just 0.05%–0.2%.
• For CFDs, spreads may be quoted in pips. A typical spread might be 0.5 pips ($1.70) for gold CFDs, but can widen during volatile market conditions.

Real Example:

If spot gold is $3,400 but your dealer sells at $3,468 (2% spread), your immediate cost is $68 per ounce. On an ETF trading at $50 with a $0.10 spread, buying and then selling at this price would cost you $0.10 per share.

Other Fees

Gold investing can involve additional costs that are not always obvious up front:

• Physical gold often requires storage ($0–$300/year), insurance, and may involve delivery fees or GST on coins/bars.
• ETFs may have small annual management fees ($0–$20/year on $10,000 invested), plus FX conversion fees if the fund trades in USD.
• Derivative products can carry overnight financing (swap) fees if you hold positions open, inactivity fees, and currency conversion charges for NZD-USD trades.

Real Example

Storing $20,000 in gold at a secure NZ gold facility might incur $200 per year. Holding $10,000 in a gold ETF with a 0.4% management fee costs $40 annually. Trading a gold CFD overnight could incur a $3 swap fee per day.

The Tax on Income from Trading gold in New Zealand

Investing in gold in New Zealand is subject to specific tax rules that depend on the type of investment product you use. Whether you choose physical bullion, gold-backed ETFs, gold mining shares, derivatives, or digital gold accounts, each investment method may have different tax treatments, rates, and reporting requirements under New Zealand law.

• Physical gold bullion/coins: Gains are not taxed unless you intended to resell at a profit when buying; the “intention rule” matters.
• Gold ETFs/ETCs: May fall under the Foreign Investment Fund (FIF) regime if offshore, which applies a 5% “fair dividend rate” or alternative calculation; amounts under A$50,000 in cost are generally exempt, otherwise taxes apply.
• Gold mining company shares: Capital gains are usually not taxed, but dividends are taxable; gains may be taxed if you trade regularly or buy with the intent to resell.
• Derivatives (CFDs, futures): Profits are fully taxable as income at your marginal tax rate; losses may be deductible.
• Digital gold accounts: Tax depends on whether you are trading (taxable as income) or holding for savings (possibly non-taxed capital gain), based on your specific activity and intent.
• Corporate investors: All profits and income are subject to standard 28% corporate income tax, with all usual business deductions.

Depending on your activity and investment method, you may need to include gold-related income in your annual NZ tax return. Individuals who regularly trade gold, use derivatives, or invest through foreign ETFs may face additional compliance, such as FIF calculations, income classification, or GST registration for business activities. It is essential to maintain clear records of all transactions and seek advice if you are uncertain about your obligations or whether your gold activities trigger capital or income tax treatment.

10 Tips for Choosing the Right Broker to Speculate on gold

Selecting the right broker is crucial for anyone speculating on gold using derivatives such as CFDs or futures. A reliable and well-suited broker affects not only your trading costs and experience but also the safety of your investments. By carefully weighing essential criteria, you can make an informed decision and trade with greater confidence in the highly dynamic gold market.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.