Gold Savings Book and Gold Repurchase Complete Guide: Account Opening Fees Revealed, How to Turn Around with Price Differences

The gold market in 2025 is booming, with breaking through the $4,300 per ounce mark becoming the norm. Discussions about gold investment online are becoming increasingly heated, and many beginners are asking the same questions: “How exactly do I operate a gold passbook? Which one should I choose between gold ETFs and physical gold?” This article will analyze these core questions one by one and provide a detailed explanation of the meaning and operation of gold buyback.

Gold Passbook and Gold Buyback: The Complete Ecosystem of Bank Gold Accounts

The Essence of the Gold Passbook

A gold passbook is a “non-physical, purely digital” bank gold account. Investors purchase using TWD or foreign currency, and the bank converts the funds into a digital record of gold weight in grams. The entire process does not involve physical gold delivery, operates entirely within the bank system, and provides 24/7 service.

Over the past two years, global central banks have purchased over 1,000 tons of gold, driving a significant increase in demand for gold passbooks. The core features of this tool are: no custody costs, small investment minimums (as low as 200 NT dollars), and support for scheduled regular investments.

What is a Gold Buyback?

Gold buyback refers to the transaction where investors sell their digital gold holdings in the passbook back to the bank in exchange for cash or foreign currency flowing into their savings account. Unlike withdrawing physical gold bars, gold buyback is a purely virtual transaction, executed instantly, with no additional custody or transportation fees. This is also the main exit method for most investors.

It is important to note that if you want to buy gold passbook again after a buyback, you need to submit a new purchase application; it cannot be directly transferred back (but the purchase process is quick and convenient).

Gold Passbook vs Gold ETF vs Spot Gold: A Comparison of Three Major Investment Methods

To determine which gold investment method suits you, check this comparison table:

Investment Method Comparison Table

In-Depth Analysis of Each Option

The gold passbook is suitable for investors who prefer to “just leave it long-term.” Its advantages include no need for self-custody, very low risk, and diversified investment. However, the drawbacks are also clear: it can only go long, the bid-ask spread is a cost, and profits rely solely on price differences (no interest income). The key pain point is that buyback can only be performed during bank operating hours, so liquidity is relatively limited.

Gold ETFs (such as 00635U or US stocks like GLD) are more suitable for investors who want to perform swing trading. They can enter and exit anytime during stock market hours, with almost zero spread, but management fees are an annual cost. Plus, they provide cash flow (dividends), making them more attractive for those seeking diversified income.

Spot gold XAUUSD targets professional short-term traders. The spread is extremely low (0.01~0.03%), with the deepest liquidity worldwide 24 hours a day, but involves leverage risk and exchange rate fluctuations, requiring forex trading experience.

Core Advantages of the Gold Passbook

Compared to buying physical gold bars at dealers (spread 7~10%, difficult to withdraw), the passbook has a spread of only 1.4~1.5%, making it cheaper. Compared to spot trading (which requires forex accounts and involves leverage risk), operating a gold passbook is more straightforward and suitable for beginners. Therefore, the gold passbook remains the first choice for most retail investors in Taiwan.

Complete Guide to Opening a Gold Passbook Account and Fees

Account Opening Conditions and Preparation

Using Taiwan banks as an example, account opening is available for individuals, legal entities, and organizational groups (excluding OBU clients). You need to prepare ID card, secondary ID (health insurance card), and seal, and complete the process in person during bank hours (9:00~15:30). The account holder must have an active deposit account with the bank.

Account Opening Fees

NT$100 for in-branch opening, NT$50 for online banking opening (but initial account opening still requires in-branch). Banks periodically offer promotional discounts on opening fees, so it’s advisable to check in advance.

Major Bank Fee Comparison

The costs for gold passbook services at five major banks are as follows:

Important Reminder

Besides the basic handling fees above, banks also charge NT$100 per change for “scheduled investment adjustments” (such as changing investment amount, account, or investment date). If the passbook is lost, reissuance incurs a fee. Before opening, confirm your investment plan to avoid frequent changes that generate extra costs.

How to Operate After Opening: Complete Guide to Buying, Gold Buyback, and Withdrawal

Four Ways to Buy

1. Single Purchase: Log into online banking “Gold Financial Management” module, select currency (TWD/USD/RMB), input purchase amount (minimum NT$200), and the system automatically deducts. No handling fee, but includes a 0.7% spread.

2. Limit Order Setting: Pre-set target prices (e.g., buy automatically when gold price drops to $4,200), and the system executes automatically. Suitable for capturing lows in volatile markets.

3. Gold Piggy Bank: Set automatic monthly deduction date and amount; the bank automatically purchases at the current price. Opening fee about NT$100 (NT$50 with online banking), operates monthly without further action.

4. Scheduled Regular Investment: Deducts fixed amounts on specific dates (e.g., 6th, 16th, 26th of each month), with a single handling fee of NT$100. Suitable for dollar-cost averaging.

Gold Buyback Operation Process

Gold buyback is the main exit method. Steps are as follows: log into online banking “Gold Financial Management” → check passbook balance (in grams) → input the grams to sell (minimum NT$200 worth) → confirm the current price → the buyback amount is transferred instantly to the designated savings account. The entire process has no handling fee and can be completed on the same day.

Unlike withdrawing physical gold bars, gold buyback is a virtual transaction, with no additional custody or transportation costs.

Physical Gold Withdrawal Options

If you want to withdraw physical gold bars (not virtual buyback), you need to fill out a “Gold Withdrawal Application” in person. The bank will produce gold bars based on the grams, with additional spread and shipping costs (about NT$200~500 per time). After withdrawal, the gold bars cannot be re-deposited into the passbook; they must be kept or resold independently. Most investors do not choose this option due to higher costs.

Three Major Strategies for Profit from the Gold Passbook

Strategy 1: Low Buy, High Sell Swing Trading

The core logic is to buy at relatively low points and sell at high points for gold buyback. To identify “cheap zones,” analyze main factors influencing gold prices (geopolitics, USD trend, central bank policies, real interest rates), combined with technical support and resistance levels.

Real example: In early 2025, gold price dropped from around $3,000 to $3,200, then recently rose to $4,240, an increase of over 35%. Some investors realized a paper profit of 10~20% during this process. The key is not to chase highs but to enter at supported levels.

Strategy 2: Gradual Accumulation on Dips

First, determine the general trend that “gold is likely to rise over the next 2~3 years,” then divide your capital into 5~8 parts. Use technical indicators (like the 60-day moving average) to find relative lows; add positions each time the price breaks below key support levels.

Practical tip: Use USD-denominated gold passbooks (spread only 0.5%, better than TWD), and when spot prices fall 3~5% below the 60-day moving average, add to positions. This approach controls risk and gradually builds your holdings.

Strategy 3: Regular Fixed Investment

Set fixed dates and amounts each month for automatic deductions via “Gold Piggy Bank,” requiring no active management. This is the most hassle-free method.

Important Limitation

The fixed investment strategy is only suitable during a gold uptrend. If prices continue to fall, this method can lead to increasing losses and being trapped in positions. Always assess the overall trend before adopting this approach.

2025 Gold Price Outlook and Investment Advice

Based on market reactions, gold prices surged from $3,000 at the start of the year to $4,240, a gain of over 35%. The current level is quite high, so a full all-in is not recommended.

If using a scheduled regular investment in the gold passbook, you can continue, but be cautious with single large purchases. Long-term investment (over 2 years) has a higher success rate.

For quick short-term gains, the liquidity and spread of the gold passbook may not be optimal. In this case, switching to spot gold XAUUSD for short-term trading offers more flexibility with lower spreads, but be mindful of leverage risks and exchange rate fluctuations.

In summary, the core of gold passbook investing is “profit from price differences.” Whether through low buy-high sell, incremental accumulation, or fixed regular investments, the main driver is the appreciation of gold prices. Choose a bank that suits your needs (considering fees, online interface, USD spread), open an account, and select an operation strategy based on your risk tolerance to participate steadily in the gold market.