Gold has more than doubled over the past two years—pretty impressive run. But here's the thing: just because the asset performs well doesn't mean you're maximizing gains if you're not thinking strategically about how you hold it.

Let's break down what actually matters when deciding on your gold exposure.

**The Cost Factor**
Physical gold sounds romantic, but storage fees, insurance, and dealer markups can silently erode your returns. If you're buying coins or bars, you're often paying 2-5% above spot price right off the bat. Then there's the ongoing burden of secure storage.

**Tax Implications**
This varies by jurisdiction, but in many places, precious metals face higher capital gains tax rates than equities. Some countries even treat physical gold differently from exchange-traded versions. Knowing your local tax structure before you commit is non-negotiable.

**Liquidity Considerations**
Need to exit quickly? Physical gold means finding a buyer and dealing with bid-ask spreads. ETFs and futures offer instant liquidity but might come with trading costs and counterparty risks. There's always a tradeoff—speed versus control.

So what's the move? It depends entirely on your holding period, location, and how much liquidity you actually need. Short-term traders might prefer paper instruments. Long-term holders might tolerate storage costs for physical possession. The answer isn't one-size-fits-all.