Invest in gold: Top brokers in South Africa 2025

How to invest in gold?

Investing in physical gold

Physical gold investing involves buying certified bars or coins from reputable dealers and either storing them at home, in a bank safe deposit box, or with professional vaulting services. This method offers direct ownership, shields against inflation, and carries no counterparty risk. However, investors need to account for dealer markups, possible VAT, secure transportation, and ongoing storage or insurance fees—especially important for significant holdings.

Example: Gold Investment Scenario

Suppose you purchase a 50g gold bar for R55,000 (with the spot price at R1,100/gram in mid-2025), paying an extra R1,000 dealer premium. You choose a specialist vault in Johannesburg, charging R600/year for secure storage and insurance. After 3 years, if the gold price rises 20% to R1,320/gram, your bar is now worth about R66,000, with net profit reduced by R2,800 in total costs.

Investing via ETFs and sector company stocks

Gold ETFs allow you to buy shares that track the price of gold without managing physical storage. South African ETFs can be bought on the JSE in rand, with annual management fees deducted automatically. Gold mining company stocks offer exposure to gold prices and may pay dividends, but also carry operational and management risk, and tend to be more volatile than ETFs. Both vehicles are tradable via online broker accounts and are suitable for most investors.

Example: ETF vs. Mining Share Investment

Example: An investor allocates R40,000 to a major JSE-listed gold ETF with a 0.4% annual fee. If gold climbs 15% in one year, the ETF is likely to deliver a similar return (minus about R160 in fees). Meanwhile, R15,000 in a local mining share could rise by more or less than 15%, depending on that company’s costs, profits, and dividends—potentially paying out R300–R600 in annual dividends.

Investing in gold with derivatives

Derivatives—including CFDs, futures, and options—let traders speculate on the price of gold with leverage. This means controlling a large position with relatively small capital, magnifying gains but also losses. These products are best for active, skilled investors who are comfortable with short-term trading, strict stop-loss management, and the risk of losing more than their initial deposit.

CFD Trading Example: Risk and Reward

Example: A trader puts down R8,000 initial margin for a CFD referencing one ounce of gold at $3,250 (R59,150 at 18.2 ZAR/USD). If the price rises to $3,350 (R60,950), the R1,800 gain is realized at exit. If gold falls by the same amount, the loss would exceed 20% of the initial margin. Overnight holding fees and rapid price swings add to risk.

How to Choose the Best Broker to Invest in gold

Selecting the right broker to invest in gold is closely tied to your preferred investment method and your personal objectives. South African investors can access gold in several ways: holding physical gold, trading ETFs and mining shares, or using derivatives like CFDs. Each approach has unique broker and platform requirements. The safety of your funds, cost structure, and customer support should all be considered, but the ideal broker for physical gold is rarely the same as for trading derivatives.

Best broker for physical purchase

For those wishing to own gold directly in the form of bars or coins, your broker generally acts as a dealer or a retailer, sometimes offering secure storage solutions. The right broker ensures authenticity and safeguards both your purchase and ongoing holding.

• FSCA-authorised and regulated as a gold dealer
• Transparent pricing, including clear premiums over gold spot and no hidden costs
• Options for secure storage or physical delivery (with insurance)
• Documentation of authenticity and re-sale guarantees
• Clear procedures for buying and liquidating your holdings within South Africa

Expert Advice

Always verify the broker’s FSCA registration and insurance arrangements. Prioritise established local or global dealers with visible customer feedback, competitive costs, and responsive, locally-based customer service.

Best broker to invest in ETFs and sector company stocks

To gain gold exposure via ETFs or listed mining companies, you’ll need a JSE-member stockbroker or an international shares platform. The right broker provides efficient access to South African and international markets, reasonable trading fees, and a user-friendly platform supporting research and reporting.

• FSCA-regulated, ideally with JSE membership
• Clear commission and administration structure for both local and foreign assets
• Range of available gold ETFs (e.g., NewGold ETF) and access to global gold mining equities
• Usability of the broker’s platform for trading and account management
• Access to research, tools, and tax documentation helpful for South African residents

Expert Advice: Key Considerations for Traders

Choose a broker with local oversight (FSCA authorisation) and check all costs before trading.

Good customer support is essential for resolving issues about offshore holdings, fund transfers, and tax reporting.

Best broker to trade gold with derivatives

Trading gold derivatives (such as CFDs, futures, or options) requires a broker specialising in leveraged products. The right intermediary will offer robust risk management controls, transparent margin requirements, and a competitive cost structure. With these products, the financial risks are higher and regulatory protection is even more important.

• FSCA-regulated and authorised for derivative trading
• Clear and competitive spread, commission, overnight financing rates, and margin policies
• Availability of demo accounts and comprehensive educational resources
• Powerful, stable, and intuitive trading platforms (desktop and mobile)
• Reliable systems for deposits and fast withdrawal of funds

Expert Advice for Trading Gold Derivatives

Expert advice: Only use brokers licensed by the FSCA for trading derivatives on gold. Always test demo services first, understand all fee components, and seek brokers with a strong track record and transparent dispute resolution in South Africa.

Why invest in gold?

Gold is highly valued as a core holding for South African investors seeking to protect and grow their wealth amid economic uncertainty. Its universal recognition, track record of outperformance during global crises, and ability to guard against inflation make gold a vital part of a robust investment strategy. The metal offers tangible security, stands resilient when other assets falter, and enjoys steady demand from both central banks and consumers worldwide.

• Serves as a reliable safe haven during economic and geopolitical instability
• Helps protect purchasing power by performing well during periods of inflation and currency weakness
• Adds strong diversification benefits, as gold’s price trends are often uncorrelated with equities and bonds
• Remains highly liquid, making it easy to buy or sell virtually anywhere in the world
• Supported by growing demand from central banks and the technology sector
• Physical gold is a tangible asset with no counterparty risk and universal financial acceptance

Gold’s resilience, liquidity, and multi-decade growth record highlight its ability to help South African investors preserve and expand their capital over the long term.

The fees associated with investing in gold

Before investing in gold, it's essential to fully understand the range of fees each investment method involves. Fees affect net returns and can vary widely whether you buy physical gold, invest via ETFs and sector stocks, or trade gold derivatives such as CFDs. By comparing costs across these options, investors in South Africa can make informed, cost-effective choices and avoid unexpected expenses.

Buy/Sell Commissions

Buy/sell commissions are direct charges you pay each time you buy or sell gold. For physical gold (bars and coins), these fees cover dealer handling, verification, and logistics, and tend to be higher than digital trading. For ETFs and gold shares, commission is applied per trade and is often lower. In the case of derivatives, some brokers charge per trade, while others may not apply a traditional commission but might include the fee within the spread or through other costs.

Real Example

If you buy a 1 oz gold bar at a dealer with a R300 commission, then sell it later with the same commission, the round-trip commission cost totals R600. Purchasing R10,000 of a gold ETF incurs a R70 broker commission each way, adding up to R140 in total commissions.

Brokerage Fees

Brokerage fees are periodic charges for maintaining your investment account. Physical gold dealers rarely charge ongoing brokerage after purchase, but digital platforms for ETFs or shares usually apply monthly account fees or an annual fee as a percentage of your investment. For derivatives (CFDs), a monthly platform fee or a percentage of margin may apply, with added minimums if trading activity is low.

Real Example:

If your stockbroker charges R120/month to maintain an ETF trading account, you'll pay R1,440 annually regardless of trading. Trading CFDs with a broker that charges R100/month platform fee means you pay R1,200 per year, even on low account usage.

Spreads

The spread is the difference between the price at which you buy (ask price) and sell (bid price) gold. Spreads on physical gold cover handling, retail risk, and market movements; they are often wider than for ETFs or CFDs. ETFs usually offer narrow spreads due to liquidity, while derivative trading provides a quoted spread with each trade, reflecting prevailing market conditions.

Real Example:

If you buy a gold coin for R3,500 but can only sell back immediately for R3,400, your spread cost is R100/oz. On a gold ETF, a 20-cent spread for 200 shares equates to R40. With CFDs, a 100 pip (R15) spread per traded ounce is charged up-front.

Other Fees

Other fees can include secure storage, insurance on physical gold, annual management for ETFs, overnight funding for CFDs, and currency conversion if trading in US dollars. These costs can substantially impact long-term returns and should always be factored into your investment decision.

Real Example

Storing R100,000 worth of physical gold at a third-party vault may cost R1,500/yr for storage and R600/yr for insurance. A gold ETF with a 0.35% management fee on the same amount results in R350/yr. CFD holding fees at 3% would amount to R3,000 annually on a R100,000 position if held overnight throughout the year.

The tax on income from trading gold in South Africa

Investing in gold in South Africa is subject to tax rules that vary based on your chosen investment method. Whether you hold physical gold, gold ETFs, mining shares, derivatives, or digital gold accounts, knowing how each is taxed can help you plan and avoid unexpected liabilities.

• Physical gold: Profits from selling are subject to capital gains tax, with annual exclusions available for individuals.
• Gold ETFs/ETCs: Capital gains tax applies on profits when selling ETF or ETC units, treated the same as other financial assets.
• Gold mining company shares: Capital gains tax applies when shares are sold for a profit; dividends received are subject to a 20% dividends tax.
• Derivatives (CFDs, futures): Income classified as capital gain is taxed at the CGT rate if held as an investment, or at personal income tax rates (up to 45%) if trading is frequent and regarded as a business.
• Digital gold accounts: Profits realised from sale or redemption are subject to capital gains tax, as with physical gold holdings.

Investors in South Africa are required to declare all gains, dividends, and profits earned from gold investments to the South African Revenue Service (SARS) in their annual tax returns. Capital gains should be reported and taxed according to the disposal of each asset, with appropriate exclusions applied for individuals. Those trading gold or derivatives frequently enough to be classified as professional traders may be taxed at higher marginal income tax rates. Record keeping of all transactions, costs, and profits is essential to comply with SARS requirements and to substantiate your position in case of an audit.

The 10 tips for choosing the right broker to speculate on gold

Choosing a reliable and suitable broker is crucial for successful speculation on gold through derivatives like CFDs or futures. The right broker will not only offer fair trading conditions and security for your funds, but also provide the tools, customer support, and education needed to manage risks and capitalise on market opportunities. Use these ten key tips to select a broker that matches your trading goals, gives you confidence, and helps protect your investment capital.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.