Ultimate Hedge: Gold serves as “chaos insurance” against the collapse of fiat currencies and Western financial systems.
Diversification: It holds a low correlation with stocks and real estate, protecting your wealth during market crashes.
Physical vs. Paper: You can choose between holding physical bullion, gold ETFs, or speculating on price movements.
Portability Issues: While liquid, physical gold presents unique challenges for expats regarding transport and customs.
Long-term Growth: Gold has averaged a 9% annual return, effectively outperforming inflation over decades.

What is investing in gold? Investing in gold simply comes down to allocating (part of) your funds to the gold sector. Gold is an integral part of many investment portfolios for several reasons, which we’ll get to in this article.

You can apply the same principles and the pros and cons that I am going to discuss to the other two popular precious metals silver and platinum. For many people, international gold investment is the first step toward financial sovereignty.

There are a number of ways you can invest money in gold. The most important are:

🧱 Purchase physical gold

Buying physical gold is the most popular and well-known method of investing in it. You buy physical gold, such as gold bullion, often literally get your hands on it and can/should keep somewhere. You are also the legal owner.

I can understand the appeal of this, as you are buying something that is valuable and that you can see and actually touch. Unlike the more abstract forms of investing such as stocks and ETFs, investing in physical gold is something that most people understand and trust, as it has been going on for thousands of years, and has been a staple for the same amount of time.

This is the most simple form of investing in gold, no third party such as a broker or a bank is involved, just you and a seller (or buyer) of gold. It is quite cheap to store your gold: you can rent a safe somewhere, or just keep it at home in a safe or in a hole in the garden.

I’d strongly advise you against putting your gold in a bank, because banks aren’t loyal to you. If a government of debt collector comes knocking, they’ll more than likely give up your gold willingly.

The fact that you know exactly how much your investment is worth at any given time is also very reassuring. If you have, for example, 1 kilo of physical gold, you can simply check online how much it is currently worth and you know exactly how much money you have in your hands.

This level of transparency is why many choose to buy physical gold as expat residents in uncertain regions.

Physical Gold Ownership Checklist:

Verify Purity: Always look for .999 or .9999 fine gold stamps.
Mints: Stick to reputable mints like the Royal Canadian Mint or PAMP Suisse.
Receipts: Keep original purchase invoices for future tax or customs proof.
Denominations: Consider smaller coins (1 oz) for easier future liquidation.
Condition: Keep bullion in its original assay card if possible to preserve value.

Everything about the Western Collapse And How to Save Yourself Check out my new book, available on Amazon! Get the book.

📈 Gold ETFs

An ETF is an Exchange-Traded Fund, an investment vehicle that attempts to match the performance of a particular index (kind of like an index fund, but one that you can trade). In other words: you invest through the stock market in a fund that invests in gold.

As the price of gold rises, so does the value of the ETF. This is a pretty simple form of investing in gold, you can do this via your computer or smartphone, anywhere in the world.

An advantage (and disadvantage) of this is that you do not have physical gold in your hands. You don’t have to take care of it or pay to keep it somewhere, but … well, it’s also much more ephemeral. You do have to pay certain fund costs, both when purchasing/selling and annually for management.

Usually that’s a negligible number, but it’s definitely a factor. For those focused on portfolio diversification outside western markets, ETFs provide the quickest entry point without the logistics of a vault.

⚖️ Speculation

You can also speculate on the gold price through brokers like eToro. This is the same principle as cryptocurrency copy trading, which means you can follow a copy trader who invests in gold. This is a great option and sometimes even better than investing in an ETF, because it costs little to nothing.

It’s also very simple to do, you don’t have to research what the best gold ETF is, and you can very easily track the status of your investment. This is often the preferred route for people who want to how to use crypto safely alongside traditional assets.

⛏️ Gold Mines

A fairly risky form of investment, but one that can potentially give you a lot of profit: you can invest in companies that either operate a gold mine or are looking for gold mines. Of course you understand that in the latter case you run a lot of risk of losing your money, if that company does not discover anything.

But if they do discover a literal gold mine, you also share in the generous profit. Unlike the options above, I have no experience with this, so I can’t give you any recommendations.

If you are interested in this, I can recommend that you first do a very thorough research into the various options. Often, these companies are located in emerging markets where political risk is a major factor.

✨ Advantages of investing in gold

You make your portfolio more diverse: investing only in stock ETFs, real estate or bonds can be a good idea … until those markets fail. Investing part of your portfolio in gold ensures that you are more diverse. A balanced portfolio is your best defense against volatility.
Gold covers the risk of financial markets: stocks and ETFs are moderately risky. The returns are also decent, and you can earn passive income with it, but if the market is bad, you’ll be glad you put some of your money into safe, reliable, and stable gold. After all, it isn’t linked to the stock market. If we take a quick look at Ray Dalio‘s portfolio breakdown, we see that he recommends spending 7.5% of your portfolio on gold in order to spread your risk as much as possible.
Investing money in gold offsets inflation: inflation is a huge long-term problem, and I think the primary reason why it’s madness to 1) have a job with a steady income, 2) save more money than needed for your emergency fund, and 3) rely on a pension. Gold increases in value over the years and ensures that you can stay ahead of inflation. Your savings will have much less purchasing power in X number of years than it has now. If you had invested your savings entirely in gold, that gold would be worth more within X number of years, so you have not lost purchasing power. Understanding the impact of inflation is critical for long-term survival.
Gold is a very easily convertible / liquid investment: physical gold is an investment that you can convert into fiat money overnight. If you suddenly need money but all your money is in bonds or real estate, it will take a while before you can convert it into cash. Investments in gold, on the other hand, in the case of physical gold, can be brought to a buyer and sold immediately.
There is a strong and global demand for gold: gold is a globally sought-after commodity. Whether you live in the US, Europe, Turkmenistan or Japan, people everywhere are interested in gold.
The gold price always rises in the long run: in the long run gold rises in value by an average of 9% each year. That is slightly less than the stock market, but certainly not a bad yield.
When society collapses, you can use your gold to buy food: Sounds a bit ridiculous, but what if the economy actually collapses? The whole fiat money system is based on debt, there is no intrinsic value behind it. I don’t think that’s tenable, and if we look at the past, situations with central banks that can print almost unlimited money have always derailed (you can look it up if you don’t believe me). The only fixed value since the dawn of humanity (more or less) are intrinsically valuable and rare metals and stones, which are globally recognized as means of payment. This is why you need an emergency exit plan that includes portable wealth.

⚠️ Disadvantages of investing in gold

Gold yields nothing, there is no flow of income: Yes, it increases in value every year, just like real estate and stocks, but unlike those assets, gold does not bring in a flow of income. That isn’t a massive disadvantage because gold has other advantages, but if you are investing your money with the hopes of earning passive income, you should definitely take this into account. If you need cash flow, consider location independent income through real estate instead.
The gold price can be quite volatile in the short term: just like cryptocurrency and stocks. Not really a hugely important factor in my opinion, because short-term investing is not a good idea for most people.
Storage and Theft: If you have physical gold, you have to keep it somewhere. If that is at the bank or elsewhere in a safe, you may have to pay for it. If you do that at your home, it could be stolen. If you keep it at a bank, the government of other entities can “legally” take it. This also raises a problem for digital nomads, or just financially independent people who move to a different location every few years. Carrying around a few pounds of gold isn’t always a good idea. Of course you could just invest in a gold ETF or speculate on the market.

📦 Logistics of Holding Gold Abroad

When you are an expat, the question of holding gold abroad becomes much more complicated than it is for someone staying in their home country. You have to consider not just where you are now, but where you might need to go if things take a turn for the worse.

If you are moving to the Philippines or moving to Colombia, you are dealing with different legal frameworks regarding precious metals.

Best country to store gold options often include Singapore, Switzerland, or the Cayman Islands. These jurisdictions have a long history of respecting private property and offering offshore gold vault safety that is disconnected from the standard banking system.

If you keep your gold in a private vault in Singapore, for example, it is not considered a reportable financial account in many jurisdictions, providing a layer of digital privacy and asset protection.

Expat Gold Storage Comparison:

Storage Type	Pros	Cons
Home Safe	Instant access, zero fees	High theft risk, no legal protection
Private Vault	Professional security, insured	Annual fees, travel required for access
Bank Box	Reliable infrastructure	Subject to bank closures and seizures
Burying	Impossible to find	Risky if you have to flee quickly

📑 Taxes and Regulations for the International Investor

A major factor often overlooked is the tax on gold investment overseas. Depending on your residency status and the country where the gold is stored, you might be subject to capital gains tax when you sell.

Some countries, like the UK with Sovereigns and Britannias, offer tax-exempt status on certain coins because they are technically legal tender. When you are renouncing tax residency, you need to know exactly how your physical assets will be treated.

Furthermore, moving gold across borders is a massive headache. Most countries require you to declare any “monetary instruments” over $10,000. While gold bullion is sometimes treated as a commodity rather than cash, customs agents often disagree.

If you try to carry 10 ounces of gold through an airport without declaring it, you risk total forfeiture. This is why many expats prefer to own gold bullion abroad through a professional storage service that allows them to sell in one country and buy in another without physically moving the metal.

⚖️ Strategic Allocation in an Expat Portfolio

How much gold is enough? While Dalio suggests 7.5 percent, others in the “prepper” or “hard asset” communities suggest up to 25 percent. If you are living in a volatile region like moving to Cambodia or moving to Thailand, having a higher percentage of liquid, physical wealth is a sensible move. It acts as your “get out of dodge” fund.

You should always ensure your gold is part of a larger plan. This includes having a nomad retirement plan and a functional emergency fund while living abroad. Gold is not your emergency fund. It is your “end of the world” fund. Your emergency fund should be in liquid cash or a second bank account for immediate use.

Strategic Portfolio Balance Checklist:

Liquidity (Cash): 3 to 6 months of expenses for immediate needs.
Insurance (Gold): 5 to 15 percent for long-term wealth preservation.
Growth (Stocks/Real Estate): The remainder for wealth building and income.
Portability (Crypto): 5 to 10 percent for digital transfer of wealth.

🔬 The Risks of Counterfeit Gold

As the price of gold rises, so does the prevalence of sophisticated counterfeits. Tungsten has a very similar density to gold, making it possible to create “gold-plated” tungsten bars that pass basic weight tests. If you are going to buy physical gold as expat travelers in local markets, you must be extremely careful.

Always use a “Sigma Metalytics” tester or perform a “Ping Test” on coins. Better yet, only buy from internationally recognized dealers who provide a buy-back guarantee. If you are holding gold abroad, the last thing you want is to find out your “insurance policy” is actually a bar of worthless industrial metal when you need to buy a flight out of a collapsing country.

This is another reason why offshore gold vault safety programs are popular. They verify and insure every gram they hold for you.

💻 Gold vs. Bitcoin for the Modern Nomad

Many people compare gold to Bitcoin, calling the latter “Digital Gold.” Both are decentralized, scarce, and outside the control of central banks. However, for an expat, they serve different purposes.

Gold is the ultimate physical backup that requires no electricity or internet to have value. Bitcoin is the ultimate portable asset that can be carried in your head via a seed phrase.

In a scenario where the west collapses, you likely want both. Gold for local trade and survival, and Bitcoin for moving large amounts of wealth across borders without customs interference. Using crypto safely abroad is a modern necessity, but it shouldn’t replace the physical security that only gold provides.

🏦 Why Central Banks are Hoarding Gold

If you want to know if international gold investment is a good idea, look at what the “smart money” is doing. Since 2022, central banks around the world have been buying gold at record levels. They are doing this to diversify away from the US Dollar.

If the institutions that run the world don’t trust their own paper money, why should you?

By holding gold abroad, you are effectively doing what central banks do: creating a reserve that isn’t dependent on the promises of a specific government.

Whether you are moving to Paraguay or moving to Georgia, having a portion of your wealth in a “tier 1” asset like gold is the most conservative and protective move you can make. It protects you from the collapse of empires and the inevitable debasement of currency.

Global Gold Demand Trends:

Central Bank Buying: Reached historic highs in the last 24 months.
Jewelry Demand: Remains steady in markets like India and China.
Technology Use: Growing need for gold in high-end electronics.
Investment Demand: Increasing as a hedge against geopolitical conflict.

🏁 Is investing in gold a good idea?

Investing in gold is generally wise, due to the following factors:

It contributes to more portfolio diversification. It is a safe investment to counter inflation and the riskier aspects of your portfolio.
You can make an average profit of 9% per year in a reliable, simple and liquid way.
There are four methods of investing in gold, depending on your situation, preferences and risk tolerance.

That being said, you should of course keep in mind that there are also drawbacks, mainly that physical gold can be a problem if you travel a lot, and that gold is not a source of passive income. You have to decide if the security of own gold bullion abroad outweighs the inconvenience of moving it.

In general, investing in gold is wise and spending part of your portfolio on gold is a good idea. How you do that and to what extent, is something you’ll have to decide for yourself and include in your investment plan.

Whether you are getting permanent residence in a new country or just testing a country before relocating, gold provides the financial floor you need to survive whatever the world throws at you.

Read more: 6 benefits of moving abroad

💰 Assets Abroad: Gold