Ask Your Advisor: How do I gain exposure to gold?

Gold, as Spandau Ballet first sang in the early 1980’s, is “indestructible”. And for that, and for much of history, it has been widely known as a safe-haven asset that investors can turn to in times of crisis.

Lately, however, gold has surprisingly underperformed amid the escalating tensions in the Middle East. At the start of the conflict, it traded from USD 5,200 per troy ounce to a high of USD 5,400.

However, because of elevated oil prices caused by the closure of the Strait of Hormuz, markets began to entertain thoughts that the crisis could reignite US inflation and discourage the US Federal Reserve from resuming its interest rate easing cycle. These sentiments bolstered the US dollar against the precious metal, with the latter falling by as much as 24% to USD 4,100 in the weeks that followed.

The debasement trade

But like the iconic song by Spandau Ballet, we believe that gold is indeed indestructible and will continue to have a place in long-term investments. Last year, global central banks aimed to reduce exposure to the US dollar and US Treasuries – both of which have seen volatile trading in response to US President Donald Trump’s unpredictable fiscal policies.

They began purchasing significant amounts of gold to diversify their reserve assets, in what is also known as the debasement trade, which means they are insuring against the falling value of money.

Sudden retail interest in gold also contributed to it rising by 70% throughout 2025. The central bank debasement trade is expected to continue, in a world that is increasingly looking for ways to lessen dependence on the US dollar.

Markets may also be overestimating the US dollar’s strength in this environment. US gross domestic product growth in the fourth quarter of 2025 was recently revised lower, from 1.4% to 0.7%. The February 2026 nonfarm payrolls data reported that the US economy shed a total of 92,000 jobs across the federal government and the private sector.

Higher oil prices will be detrimental to US businesses and consumers alike. The Federal Reserve has been known to support a struggling labor market, even in an environment of elevated inflation. A possible breakdown of bullish US dollar sentiment may eventually lead investors back to gold.

As of this writing, gold is around USD 4,400 – not too far from where it ended 2025. While this may seem like acceptable levels to start adding, a prolonged Middle East conflict could potentially see the precious metal fall back to its USD 4,100 support and possibly even USD 3,800 on further weakness.

We believe that these are ideal levels to enter. The next question is, “How can you gain exposure to gold?”

Physical gold: the real deal

There’s just something special about holding actual physical gold. It’s bright, heavy, and does not decay – a true store of value. But acquiring physical gold can be tricky. It is important to look for legitimate sellers who can guarantee the purity of their gold products.

Uniform gold bars and coins are preferred over gold jewelry, which could have different weights and levels of gold content. Just be warned that a single ounce gold bar is pricey and will indeed cost somewhere along that market value of USD 4,400 or roughly PHP 264,000 at prevailing exchange rates. Another challenge is storing physical gold and how to safely transport it when ready to exchange for cash.

Paper gold – an acceptable alternative

Not interested in holding the actual metal? The good news is that greater accessibility in online investing has made it possible to order exchange-traded funds (ETF), managed by financial institutions that hold the physical gold. These ETFs follow the performance of gold in the markets.

Note that both physical and paper gold are non-yielding assets. Unlike fixed income and equity securities, they do not pay interest or dividends. You realize a profit only if you can sell gold at a price higher than your original cost. The next sections discuss alternative ways to gain exposure to gold and benefit from potential cashflows.

Gold proxies for peso investors

Investors holding Philippine pesos can gain indirect exposure to gold by investing in gold mining companies. Some funds or unit investment trust funds (UITFs) invest in ETFs that track gold. Basically, it is an indirect way of owning gold through a UITF managed by a financial institution such as banks.

However, it is important to note that the fund’s strategy could suddenly change and shift away from gold in the future.

A more localized approach would be to invest in common shares of Philippine Stock Exchange (PSE)-listed mining companies. Apex Mining Co. Inc. (APX) is a Davao de Oro-based gold and silver mining company with a market capitalization of PHP 91.55 billion.

Recently, its stock price has shown a strong correlation to gold prices. Just be careful as the trends may diverge at some point in the future, since Apex Mining is still a private corporation. First Metro Securities Brokerage Corp. has an “Add” recommendation on its shares, with an average consensus target price of PHP 17.35 over the next 12 months.

Apex Mining also has a history of paying cash dividends. It plans to pay a regular dividend of PHP 0.24612 per share and a special dividend of PHP 0.36918 per share for shareholders on record as of April 14, 2026 (ex-date). That is equivalent to a gross dividend yield of roughly 4.18% at current prices.

Structured notes linked to gold

Finally, some financial institutions can broker offshore structured notes that can give investors participation in the performance of gold. Unlike the previous options mentioned above, it is possible to have specific structures that promise principal protection if underlying gold prices fall. These structured notes can also be customized to feature potential payouts when certain target levels are hit.

Whether you’re able to invest US dollars or Philippine pesos, there are a variety of ways to gain exposure to gold. Buying gold doesn’t literally mean having to buy the actual physical metal. Gold ETFs, global equity funds, gold-proxy mining stocks, and gold-linked brokered structured notes have made accessing gold so much easier for investors.

If you wish to explore these options, you may reach out to your Metrobank Wealth Specialist.

(Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)

EARL ANDREW “EA” AGUIRRE is the Head of the Investment Counselor Department under the Financial Markets Sector of Metrobank. He has more than a decade of experience in foreign exchange, fixed income securities, and derivatives sales. He has a Master’s in Business Administration from the Ateneo Graduate School of Business. His interests include regularly traveling to Japan and learning its language and culture.