Throughout 2025 there have been two clear investment trends: the dramatic surge in gold prices and the flood of capital into exchange-traded funds (ETFs). Gold continues to set new highs, while investors simultaneously channel record sums into ETFs across asset classes. For investors looking to make the most of the former, the question becomes less about “how much” to invest, and more “how” to invest – physical metal or ETF?
Gold has held an enduring appeal for centuries – a universal store of value, which has been trusted through economic cycles and geopolitical change. Yet despite its reputation as a “safe haven”, the practicalities of investing in physical gold have often been seen as barriers. Now, more so than ever, since the yellow metal broke through $4,000 per troy ounce, high entry costs, the need for secure storage, and insurance requirements can make direct ownership feel out of reach for many retail investors. The evolution of investment products such as ETFs has helped bridge that gap, offering access to gold without the logistical considerations of holding it outright.
Owning physical gold and silver
Owning physical precious metals means direct ownership of tangible assets. When held in allocated form, investors own specific bars or coins, often with serial numbers, stored in secure vaults. This provides clarity of title and removes layers of intermediary risk. However, this security can come with additional costs for insurance and storage.
In the Channel Islands, investing in physical bullion also has the added benefit of being VAT- and GST-free, making it an attractive option for those seeking an offshore location for wealth preservation.
Another increasingly important consideration for investors is the origin and ethical sourcing of their metal. Knowing where gold comes from, and that it has been refined responsibly, adds a layer of assurance that goes beyond price or storage. Working with reputable refiners such as Metalor, accredited by the London Bullion Market Association (LBMA) and aligned with the World Gold Council’s Responsible Gold Mining Principles, helps ensure that holdings meet recognised ESG and supply chain integrity standards.
ETFs
ETFs are not just growing, they are booming. In Europe alone, ETFs have attracted more than $260 billion in net inflows year-to-date in 2025, already well ahead of previous records. This surge underlines how investors are embracing ETFs as a go-to vehicle across equities, bonds and commodities alike. The growth has been fuelled by low costs, daily liquidity and the convenience of buying or selling through a standard brokerage account.
For investors prioritising market efficiency or those who don’t want added storage fees, ETFs offer a popular alternative to holding the physical asset. However, ETF holders typically do not own specific gold bars; they own units in a pooled fund structure. This introduces a degree of counterparty reliance, with underlying metals usually held in bulk rather than on an individually allocated basis.
For many investors, this trade-off is acceptable, with the liquidity and simplicity outweighing the absence of physical possession.
So, which is better for you?
For some investors, retaining legal title to tangible metal stored in a secure offshore jurisdiction offer reassurance that paper-based exposure cannot match. Conversely, ETFs have helped open the market to a broader audience, allowing investors to build or adjust exposure as part of a diversified portfolio without logistical complexity. In that sense, the rise of ETFs has complemented, rather than replaced, the role of physical ownership.
Many experienced investors recognise that both approaches have merit. ETFs can provide flexibility and liquidity, while physical holdings can provide security and permanence.
How Titan Wealth can help
There’s no single right answer when it comes to holding gold and silver.
Physical bullion offers independence, transparency and a tangible store of value, while ETFs provide efficiency, accessibility and ease of trading. The right choice depends on each investor’s priorities, whether that’s long-term wealth preservation, portfolio flexibility or simply diversification across different asset types.
At Titan Wealth, we can help with both approaches.
For those seeking direct ownership, our precious metals service offers access to VAT- and GST-free bullion along with secure vault storage and custody arrangements in the Channel Islands. For those who prefer the efficiency of market-based exposure, our execution only trading service can provide access to gold and silver ETFs.
Whatever your investment preference – physical assets, ETFs or broader portfolio strategies – our team is happy to help. Please contact us to find out more.