Searches for “physical gold or ETF” peak every time the gold price moves. The question is fair: both instruments track the same price, and the ETF is easier to buy through a broker. The difference is not in the chart. It is in what sits behind your position.
A gold ETF is a fund share
When you buy a gold ETF you buy a share of a fund. Some funds hold physical gold for the fund as a whole; others use derivatives to replicate the price. In either case you own a share, held through your broker, and your relationship is with the fund, its custodian and your intermediary.
A physical gold account is metal
With iSwiss Pay's gold account you buy physical gold, from 1 gram, and it is custodied by iSwiss Deposit S.A. in Switzerland. Your balance is expressed in grams and corresponds to metal held for you, outside the banking system.
The practical differences
- Ownership: a fund share versus metal held in custody for you.
- Access: an ETF trades during market hours through a broker; the gold account is in your app, next to your currency balances.
- Transfers: an ETF share cannot be sent to a friend; gold on the account can be transferred to any other iSwiss Pay user, in grams.
- Conversion: you can sell part of your gold and have the proceeds back on your currency balance.
What this guide does not do
It does not tell you which is right for you, and it does not cover the tax treatment in your country, which varies and can change. It gives you the facts about what each instrument is, so you can decide with your own adviser.