Buy gold: This is how you can invest cheaply in coins, bars and ETC.

Gold has traditionally been one of the favorite investments of people who believe that the financial system is imminent. Banknotes can become worthless, gold is always worth something, so the logic behind it. The financial experts at Stiftung Warentest think little of apocalyptic scenarios. Nevertheless, they too can gain something from the precious metal as an investment.

In the current edition of “Finanztest” they explain why gold can also be of interest to ordinary people and how it can be bought cheaply. What speaks for gold: The gold price often moves in the opposite direction to other asset classes, so that it can serve to diversify risk. When the economy crashes and stock prices fall, gold often increases in value so losses can be absorbed.

However, gold is not in itself a safe investment because its value can fluctuate widely in both directions. Since it does not generate any income through interest or dividends, but rather incurs costs (e.g. by renting a safe deposit box), it is considered to be low-yield compared to bonds or stocks.

Gold as a supplement to the depot

“Finanztest” recommends gold only as a supplement to an investment. Investing a share of five to ten percent of total assets in gold is “a reasonable amount,” the experts write. When buying coins or bars you have to pay attention to the surcharge of the seller. This is usually disproportionately high for small units, so that only larger bars from 100 grams or standard coins of 1 troy ounce are recommended.

Among the precious metal dealers in comparison, Philoro, Solit and Geiger offered moderate prices for common coins and bars. The goods can be ordered online from them and delivered directly to your home. The risk that something gets lost during transport lies with the dealer, writes “Finanztest”. The cheapest branch bank in the test is Deutsche Bank, but the offer is only aimed at regular customers. Collector coins, the price of which is poorly related to the material value, are not recommended as an investment.

For those who do not want to physically own the gold, gold ETCs are an alternative. These are securities that work in a similar way to ETFs. Instead of shares in companies, you buy a share of gold bars that are stored in the vaults of banks. Many direct banks and online brokers offer ETC savings plans from as little as 25 euros a month.

However, if you are just starting to save, you shouldn’t start with gold. As a basis for an investment, Stiftung Warentest generally recommends a mix of secure overnight money and inexpensive ETFs in order to participate in the stock market.

You can read more about buying gold bars and coins as well as suppliers of gold ETC for a fee on