How to invest in gold
For centuries, gold has been the safe haven investment choice for many people.
In times of global or economic uncertainty, such as geopolitical conflict and high inflation, buying gold as an asset can hold great appeal. In fact, gold has proven to be a sound performer and a solid counterweight to uncertainty and market risk.
Over the past 10 years, the AUD gold price has seen an average annual increase of more than seven per cent.1
But what exactly is the role of gold in a portfolio?
Well, diversification helps investors smooth out their returns during the ups and downs of financial markets, as mentioned above. Gold is often recommended as a suitable way to diversify a portfolio because over time it tends to hold or rise in value during stock crashes.2 It’s quite common to hear gold described as ‘insurance’ for investors. In a turbulent market in 2022 gold proved to be one of the better performing assets, returning a positive increase – with the ASX 200 ending the year down more than 5%.
How can investors invest in gold?
There are three main ways investors can directly access gold, with The Perth Mint offering all of these options to its clients.
A depository account like The Perth Mint’s Depository Online option is similar to a share trading account, but instead it is used to buy and sell gold and other precious metals which are physically held in custody by The Perth Mint on behalf of investors.
As an example, The Perth Mint Depository Online option allows investors to trade 24/7 without the worry of having to store the metal themselves.
Gold exchange traded products (ETPs)
Gold ETPs listed on the Stock Exchange, like Perth Mint Gold (ASX:PMGOLD), can be bought and sold like regular shares via a stockbroker or online trading account. An ETP allows investors to trade in gold as they would trade shares on the ASX. This is a good option for those who’d rather not store gold at home. This type of investment through ASX:PMGOLD can be converted into any of The Perth Mint’s bullion bars.
Bullion bars and coins
The Perth Mint’s range of bullion coins and bars are internationally renowned and can be purchased online or from leading distributors worldwide. Bars and coins can also be bought and sold in the bullion trading room within The Perth Mint Shop.
Gold coins have long been a popular investment choice, with the value store in both the physical weight of the coin and its value as a collectible. In addition to curating a unique and personal collection, coins can offer an affordable option for investors looking for direct exposure to the gold market.
Where to buy gold bullion
Whichever way you may decide to invest in gold, it’s important to buy from a reputable dealer – one who will give you a competitive price for accurately assayed gold.
Renowned globally and wholly owned by the Government of Western Australia, The Perth Mint refines 99.99% pure gold in the form of bullion coins, minted bars and cast bars. The Perth Mint’s operations are backed by a government guarantee enshrined in the Gold Corporation Act 1987 (WA). This exclusive guarantee offers clients peace of mind in the knowledge that a state government is fully underwriting our operations, obligations, and liabilities.
Precious metal prices vary throughout the day depending on global political, economic and many other influences. To reflect the ever-changing price for precious metals, the prices displayed on The Perth Mint website update every five minutes when the global precious metals market is open.
Whether buying for long-term investment in preparation for uncertain times or as part of a diversified investment portfolio, The Perth Mint’s investment products combine the convenience of trusted investment solutions with an age-old trusted store of wealth.
If you’d like to know more about investing in precious metals through The Perth Mint, visit perthmint.com
Past performance does not guarantee future results. The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from The Perth Mint. The Perth Mint is not a financial adviser. You should consider seeking independent financial advice to check how the information in this article relates to your unique circumstances. All data, including prices, quotes, valuations and statistics included have been obtained from sources The Perth Mint deems to be reliable, but we do not guarantee their accuracy or completeness. The Perth Mint is not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.
Eight questions to ask before investing in gold
Diversification helps investors smooth out their returns during the ups and downs of financial markets. We explain how.