Blog · Investing

How to Invest in Gold

How to buy gold as an investment: physical gold (bars, coins, jewellery), gold ETFs and funds, and gold-linked investments available to Nigerians.

After my recent post on gold, I received a number of emails asking the same question:

“Okay, but how do I actually buy gold?”

Let’s make this simple.

First, a quick reminder that is an educational post, and not specific advice. Please do more due diligence as needed. Also note that Gold is just one asset class, and is subject to volatility like other asset classes.

Why Gold Matters.

In 2006, gold traded at around $603 per ounce.

By 2016, it ranged between $1,062 and $1,370 per ounce (that year's low and high).

In recent years, it has traded well above $2,000 per ounce.

Just steady long-term appreciation.

Now, let’s talk about access.

Broadly, gold investing falls into two categories:

Physical Gold Non-Physical (Digital or Paper-Based) Gold

Physical Gold

This includes:

• Gold bars

• Gold coins

• Jewelry (Less ideal for investing)

Bars and coins are preferred for investment because they come with:

• Purity certification

• Standardized weights

• Easier resale value

Jewelry, on the other hand, includes:

• Craftsmanship costs

• Design premiums

• Lower resale efficiency

Jewelry can hold value, But it is not usually the most efficient investment vehicle.

Practical Ways to Invest in Physical Gold

1️⃣ The Lowest Hanging Fruit: Jewelry

You can buy gold jewelry through a trusted jeweler.

Pros:

Tangible

Wearable

Portable wealth

Cons:

Making charges reduce resale margin

Can be lost or stolen

Requires secure storage

It’s the most accessible entry point, but it should not be your only strategy.

2️⃣ Gold Coins

Gold coins are common in the UK and US markets.

You can purchase from:

• Reputable bullion dealers

• Government mints (e.g., Royal Mint in the UK, US Mint in America)

• Dukia in Nigeria (Go read more about them. I haven't done any business with them before but there's a lot of information online about them).

• Altinvest (The Alternative Bank) in Nigeria

Coins are:

• Easier to trade than jewelry

• Recognized globally

• Often purchased for investment rather than fashion

3️⃣ Gold Bars

Yes, even retailers like Costco have sold gold bars.

Dukia Gold also does.

Gold bars are:

• Higher value per unit

• Closer to “pure investment”

• Best for long-term holding

But storage and insurance matter here.

Non-Physical (Digital or Paper-Based) Gold

4️⃣ Gold ETFs (The Simple, Structured Way)

Gold ETFs (Exchange Traded Funds).

Examples include:

• SPDR Gold Trust (GLD)

• iShares Gold Trust (IAU)

You can buy gold as an ETF, just like you buy stocks.

For example, SPDR Gold Shares (GLD) tracks the price of gold.

If you use platforms like Bamboo you can access gold ETFs easily.

Why ETFs?

• No storage worries

• Highly liquid

• Easy to buy and sell

• Transparent pricing

It’s gold exposure without holding physical gold.

5️⃣ Gold Mutual Funds

Some Banks offer mutual funds with gold exposure.

Mutual funds are:

• Professionally managed

• Diversified

• Suitable for people who prefer structured oversight

You don’t pick the instruments. The fund manager does.

6️⃣ Gold-Linked Investments

Investing in physical gold, whether in jewellery or bullion, poses challenges, including security and maintenance costs.

A more popular and convenient option to access the gold market is gold-linked investments. These enable investors to purchase gold on digital platforms, ensuring secure vault storage and ownership flexibility.

This type of investment is available on AltInvest, Nigeria’s first ethical investment platform focused on accessible and ethical investment opportunities.

Advantages of Gold-Linked Investments on AltInvest

(Please do your due dilligence on them before you invest).

• Full Ownership: Acquire outright ownership of real gold coins purchased digitally.

• Exposure to Gold as an Asset Class

• Practicality: No physical storage concerns

Owning Gold on AltInvest also includes:

• Fractional Ownership (start from as little as 1 gram)

• Certificate of Ownership

• Secure Storage in vaults

• Ownership Flexibility

• Market Updates

• User-Friendly Interface

• Convenience via digital access

This is not time-consuming or capital-intensive.

It is a straightforward process. You can read more about them.

This is just an educational post. I have no affiliations with them.

The Real Question

Owning gold randomly is different from owning gold intentionally.

Investing in Gold is not the issue, doing it with structure is what is more important.

Does gold exist in your portfolio… or only in your jewellery box?

Please note: Bamboo, AltInvest and the other platforms mentioned are independent third parties, not part of Smart Stewards. Do your own research before using any investment platform. This article is education, not investment advice.