Investing in gold remains a favored strategy among investors seeking to diversify their portfolios and protect themselves against economic uncertainty. However, holding physical gold presents practical and security constraints, which explains the growing success of gold ETFs and ETCs (Exchange Traded Commodities) backed by physical gold. Among the most popular products in Europe are notably IGLN (ISIN IE00B4ND3602) from iShares and SGLD from State Street, as well as Amundi's GOLD ETF. This article offers a detailed analysis of these instruments, their historical performance, costs, and recommendations tailored to French investors.
1. Understanding Gold ETFs and ETCs: IGLN, SGLD, and Amundi GOLD
Gold ETFs and ETCs are exchange-traded funds that replicate the price of gold. Unlike stocks or bonds, they generally do not distribute dividends but reflect the variation in the price of an ounce of gold. These products can be backed by physical gold stored in secure vaults, which limits counterparty risk.
IGLN (iShares Physical Gold ETC): ISIN IE00B4ND3602, launched in 2018, it holds physical gold stored mainly in London. Its TER (Total Expense Ratio) is low, at 0.12% per year, making it one of the most competitive on the market.
SGLD (SPDR Gold Shares): ISIN US78463V1070, an American product accessible via some European brokers, also backed by physical gold. Its TER is around 0.40%, higher than IGLN.
Amundi GOLD: ISIN FR0013416716, a European ETF also replicating the price of physical gold, with a TER of 0.15%.
These ETFs are not eligible for the PEA (Plan dâĂpargne en Actions) because they are not considered European equities. Therefore, they must be held in a standard securities account or a PEA-PME if the product is eligible (rare for gold).
2. Historical Performance of Gold: +7%/year Since 1971
Since the end of the Bretton Woods system in 1971, which ended the dollar's convertibility into gold, the yellow metal has recorded an average annualized performance of about +7%. This performance takes into account spectacular increases during inflation peaks or geopolitical crises, as well as prolonged correction phases.
This moderate but steady growth makes gold a defensive asset class, often referred to as a "safe haven." However, it is important to remember that gold does not generate income (dividends or coupons), which limits its total return to price appreciation alone.
3. Gold in 2022: Less Effective Inflation Protection
In 2022, gold experienced an atypical year. Despite high inflation in the Eurozone and the United States (around 6-8%), the price of gold stagnated or even slightly declined, with an annual performance close to 0% in euros. Several factors explain this phenomenon:
The rise in real interest rates, which increases the opportunity cost of holding non-yielding gold.
A strong dollar, penalizing gold priced in USD for European investors.
Geopolitical volatility, with a mixed impact on demand for physical gold and funds.
This context demonstrated that gold is not a mechanical short-term inflation hedge but remains a strategic asset over longer horizons.
4. Comparative Analysis: IGLN vs Amundi GOLD
Characteristic
IGLN (iShares Physical Gold ETC)
Amundi GOLD
ISIN
IE00B4ND3602
FR0013416716
Fees (TER)
0.12% / year
0.15% / year
Product Type
Physical gold ETC
Physical gold ETF
Currency
EUR
EUR
Average Daily Volume
~âŹ15-20M
~âŹ5-10M
PEA Eligibility
No
No
Legal Structure
ETC (fund backed by physical gold)
ETF
Currency Risk Hedging
No
No
IGLN offers an advantage in terms of fees and liquidity, which is an important criterion for optimal order execution. Amundi GOLD remains a solid alternative, especially for investors looking to diversify their brokers or platforms.
5. Allocation Recommendations: Maximum 5-10%
Financial experts generally recommend allocating between 5% and 10% of oneâs portfolio to gold, to benefit from its diversification qualities without penalizing overall performance. Too large an exposure can limit portfolio growth, given the absence of income and goldâs specific volatility.
For an intermediate French investor, it is advised to:
Hold gold via a physical ETF or ETC such as IGLN, to enjoy direct and transparent exposure.
Avoid synthetic or leveraged products, which carry increased risks.
Not exceed 10% of total allocation to maintain a balance between growth potential and protection.
Be patient and consider gold as a medium to long-term investment, with a view to diversification and crisis hedging.
6. Tax and Practical Aspects for the French Investor
Gold ETFs are not eligible for the PEA, meaning they must be held in a standard securities account. The applicable taxation is that of capital gains, with a flat tax (PFU) of 30% (12.8% income tax + 17.2% social contributions).
It is also possible to opt for taxation under the income tax scale, with a progressive allowance beyond 2 years of holding, but this requires a specific declaration.
Finally, purchasing gold ETFs via an online platform is simple and accessible, with brokerage fees generally low (between 0.1% and 0.5% per transaction).
7. Final Verdict: IGLN, an Optimal Choice to Invest in Gold in Europe
In summary, for a French investor wishing to expose their portfolio to gold through a liquid, transparent, and low-cost product, IGLN (ISIN IE00B4ND3602) stands out as a wise choice. Its 0.12% TER, good liquidity, and backing by physical gold make it a reliable instrument. The Amundi GOLD ETF is a valid alternative, with a slightly higher TER.
It is important to keep in mind that:
Goldâs performance is volatile and does not guarantee immediate protection against inflation.
Gold does not generate income, which limits total return.
Diversification and moderation in allocation are key to leveraging its advantages.
By adhering to these principles, gold via ETF or ETC can strengthen the robustness of a diversified portfolio, especially during periods of economic uncertainty.
