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Gold ETFs vs Physical Gold — Costs, Risks, and Returns Compared

Gold has been one of the strongest-performing asset classes of the past year, with futures trading near $5,248 in late February 2026 — well above the 200-day moving average of $4,084. For investors looking to add gold exposure to their portfolio, the fundamental question isn't whether to own gold, but how. The two most popular approaches for individual investors are gold exchange-traded funds and physical bullion. Each offers genuine exposure to the gold price, but the cost structures, risks, and practical realities differ significantly. Understanding these differences can save you thousands of dollars over time and help you avoid common pitfalls that erode returns.