Gold pays no rent, no dividend and no interest. Yet it is held by central banks around the world and by many investors. Its role is not to grow wealth, but to protect it when everything else is going badly. Here is how to use it, and how to avoid paying too much for it.
The role of gold in a portfolio
- A safe haven: gold has often held up or risen during financial crises, wars or high inflation.
- Diversification: its movements do not follow those of stocks or real estate.
- Money without an issuer: it depends on neither a bank nor a state.
Its limits: it produces no income, its price can stagnate or fall for many years, and it costs money to store and insure. Many investors limit themselves to a modest share of their wealth, often quoted at between 5 and 10%.
Ways to invest in gold
Physical gold: bars and coins
- Buy from recognised dealers, with a certificate for bars.
- Common bullion coins (Krugerrand, Maple Leaf, Philharmonic…) are easy to resell.
- Compare the spread between buying and buy-back prices: it can be several per cent, especially on small denominations.
- Plan for storage: a bank safe deposit box or an insured professional vault. A safe at home exposes you to theft.
Gold ETCs and gold-tracking funds
Exchange-traded products that track the gold price, backed by physical gold held on behalf of investors. Practical, liquid and cheap, they are bought through a brokerage account. You cannot, however, touch your gold.
Gold mining stocks
They amplify gold price movements, both up and down, and add each company's own risks.
Physical gold
- You hold it yourself
- Buy/buy-back spread of several per cent
- Storage and insurance to plan for
Gold ETC
- Bought through a brokerage account
- Low fees, instant resale
- You do not touch the gold
Taxation in Belgium
- Investment gold (bars and coins meeting precise criteria) is exempt from VAT in the European Union. Silver, platinum and jewellery are not: 21% VAT makes physical silver much less attractive in Belgium.
- Some investment gold holdings fall under the 10% capital gains tax in force since 2026, above the annual exemption.
- ETCs bought through a brokerage account follow the rules for financial securities.
Traps to avoid
- Cold calls selling ‘investment’ gold or diamonds: often inflated prices or scams.
- Companies that store gold for you without transparency about where it is and how it is insured.
- Platforms promising a fixed return on gold: gold does not produce a return on its own.
- Panic buying at the top, after several months of a much-publicised rise.
Where to find these services
- FSMA warningsTo check before any purchase offered through cold calling
- World Gold CouncilReference data on the gold market
Links provided for information, with no partnership. Always check a provider's terms and authorisation before committing.
Test yourself
3 questions to check what you remember. Click an answer: the explanation appears straight away.
Question 1 of 3What is gold's main role in a portfolio?
Gold produces no income; it serves as a safe haven.
Question 2 of 3Is investment gold subject to VAT in the European Union?
The exemption only applies to gold meeting the investment gold criteria.
Question 3 of 3A cold caller offers you ‘investment’ gold or diamonds over the phone. What should you do?
Cold calling is a classic channel for inflated prices or scams.
Frequently asked questions
What share of your wealth should you put in gold?
There is no official rule. Many investors limit themselves to a modest share, often quoted at between 5 and 10%, as protection rather than a source of return.
Is gold subject to VAT in Belgium?
Investment gold (bars and coins meeting precise criteria) is exempt from VAT in the European Union. Silver and jewellery are subject to VAT.
Is physical gold or an ETC better?
Physical gold protects in an extreme crisis but costs money to store and resell. An ETC is more practical and cheaper, but you do not hold the gold yourself.
Sources
This article is educational and is not personal investment, tax or legal advice. Figures change: check them with the sources cited or a licensed professional before deciding. Read the full disclaimer.