{"id":588900,"date":"2023-05-02T17:18:47","date_gmt":"2023-05-02T14:18:47","guid":{"rendered":"https:\/\/www.etoro.com\/?page_id=588900"},"modified":"2025-05-20T12:31:12","modified_gmt":"2025-05-20T09:31:12","slug":"how-to-invest-in-gold","status":"publish","type":"page","link":"https:\/\/www.etoro.com\/au\/investing\/how-to-invest-in-gold\/","title":{"rendered":"Investing in Gold in Australia"},"content":{"rendered":"\n

Investing in gold in Australia may seem to be a fairly straightforward process, but it\u2019s important to consider the risks and to research the long-term strategies involved. You can invest in gold via physical assets, exchange-traded funds and mining companies.<\/p>\n\n\n\n

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Growing your portfolio<\/strong> with gold<\/strong> does not have to involve standing in a stream panning for precious metals. On the contrary, investing in gold can be as simple as trading shares.\u00a0<\/p>\n\n\n\n

Many retail investors<\/a> prefer the perceived safety of gold during economic or political instability, and they may even diversify into gold to balance out their portfolio \u2014 hoping that the historical trend of the price of gold rising whenever the market takes a tumble continues.<\/p>\n\n\n\n

While past performance should never be used as an indicator of future success, people\u2019s preference for investing in gold continues to this day. This guide will explore everything you need to know about gold <\/strong>investing in Australia<\/strong><\/a>, and share helpful information about the state of gold today and beyond.<\/p>\n\n\n\n

What should you know about the gold industry?<\/h2>\n\n\n\n

Whether or not you believe gold is a good fit for your portfolio, there\u2019s no denying its importance to the Australian and global markets. Its relative rarity means that it continues to be an attractive prospect <\/strong>for everyone from the average consumer right up to multinational mining corporations.<\/p>\n\n\n\n

Estimates say that about 200,000 tonnes of gold have been mined<\/a> around the world, as of 2025, with about two-thirds of this coming in the last 70 years or so. It is estimated that another 2,000-3,000 tonnes<\/strong> are mined globally each year.<\/mark><\/p>\n\n\n\n

Australia has been, and remains, a prime location for gold supplies. In fiscal year 2024, <\/strong>Australia produced 289 metric tonnes of gold<\/strong><\/a>, the third highest amount in the world after China (380 metric tonnes) and the Russian Federation (310 metric tonnes). About 60% of our country\u2019s gold reserves are in Western Australia<\/a>.<\/p>\n\n\n\n

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How have gold stocks performed historically?<\/h2>\n\n\n\n

While the history of gold is intriguing, investors generally only care about one thing: how it is performing in the markets<\/strong>. <\/p>\n\n\n\n

First, it is important to define how people invest in gold<\/strong>. This is generally broken down into three criteria: physical assets, <\/strong>exchange-traded funds (ETFs) <\/strong>and mining companies<\/strong>.<\/p>\n\n\n\n

Physical assets<\/h3>\n\n\n\n

This includes everything from gold bullion bars to jewellery, coins and more<\/strong>. While some people like to physically own the gold they are investing in, it is not the most straightforward solution, or the most lucrative in many circumstances.<\/p>\n\n\n\n

Exchange-traded funds (ETFs)<\/h3>\n\n\n\n

Considered by many to be more stable than exploration mining companies and even blue-chip miners, ETFs<\/a> that focus on gold allow you to get exposure to the <\/strong>commodity <\/strong>without having to physically own and store it yourself.<\/p>\n\n\n\n

Mining companies<\/h3>\n\n\n\n

Depending on your risk appetite<\/strong>, investing in gold mining companies<\/a> may be preferable than investing in ETFs. <\/p>\n\n\n\n

While the share price of these companies tends to move in tandem with the price of gold, be aware that there may be an \u201camplification<\/strong>\u201d factor to any market changes \u2014 meaning bigger jumps when the price of gold is rising, but also bigger drops when it falls<\/strong>.<\/p>\n\n\n\n

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Tip:<\/strong> Ensure that you do your due diligence on the different types of gold companies before adding them to your portfolio.<\/p>\n<\/div><\/div>\n\n\n\n

Historically, gold stocks have remained fairly steady over the decades<\/a> before the price of gold began to increase year-on-year from the mid-2000s. In March 2025, gold hit an all-time high<\/a> of almost US$3,040 per ounce<\/strong>, and analysts predict<\/a> that the stock will reach $7,000 by the end of 2030.<\/p>\n\n\n\n

What should you consider when investing in gold? <\/h2>\n\n\n\n

When looking to invest in gold, you should consider the type of strategy you wish to build. For example, if you\u2019re interested in hedging, you should ask yourself how gold stocks can help to diversify your portfolio<\/strong>. Here are the main things to consider when thinking about investing in gold.<\/p>\n\n\n\n

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Do you want to hedge?<\/h3>\n\n\n\n

If you want to hedge, you should understand that gold has historically been a popular investment when either the US dollar is declining or inflation is on the rise.\u00a0<\/p>\n\n\n\n

When investors\u2019 money starts to lose value, they turn to commodities where the assets, such as gold, have traditionally retained their value<\/strong>.<\/p>\n\n\n\n

Do you want to \u201cpark\u201d your money in a safe haven?<\/h3>\n\n\n\n

If so, gold could be a potential option<\/strong>. When political and economic uncertainty are disrupting the markets, many investors see gold as a safe haven asset<\/strong>.<\/p>\n\n\n\n

Do you want to diversify?<\/h3>\n\n\n\n

Diversification is a key strategy among most investors, and gold allows you to spread your risk <\/strong>across hard assets without having to worry about rising inflation or a dropping US dollar to protect your investment.<\/p>\n\n\n\n

Whether you are keen to balance your investment risks with a commodity such as gold or you prefer the excitement of investing purely in shares, make sure that you do your research<\/a> before deciding whether it is the right addition to your portfolio. Don\u2019t forget to explore the ins and outs of commodity trading<\/a> so that you can invest with confidence.<\/mark><\/p>\n\n\n\n

Some popular <\/strong>gold stocks include:<\/p>\n\n\n\n