How To Buy And Invest In Gold In Australia: Explained

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People want to know how they can buy gold in Australia and if investing in gold is a good idea.

 

Throughout history, gold has maintained its reputation as a secure investment choice. Investing in gold is an excellent strategy for diversifying your portfolio and safeguarding it from the uncertainties of both the economy and politics.

 

If you are considering investing in gold, this guide will help you. It discusses the steps to buy gold in Australia, the importance of gold investment, the best places to trade it, the best trading platforms, the pros and cons, and more.

 

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1. What Makes Gold A Good Investment?

 

Gold is treasured for its rarity, distinguishing shine, and durability. It doesn't corrode, react quickly with other chemicals, become stained, or diminish in size.

 

These qualities make it an attractive option for storing wealth. Moreover, tech advancements have made it easier to invest in this precious metal online.

 

Gold is a vital tool that helps preserve wealth serving as a hedge against inflation. The benefits of gold investment don't end here.

 

Here is why you should consider investing in gold:

 

  • Safe and stable instrument to park your money. It is primarily unimpacted by the market volatility compared to regular shares

  • It serves as a hedge against the declining dollar and increasing inflation

  • A great way to diversify your investments

  • Protects your overall financial standing when the market takes a downturn.

  • Easy to buy online and offline

  • It doesn't rust and get destroyed by water or fire damage

  • Serves as a defensive investment when economic threats arise 

  • Easy to convert to cash whenever the need arises

 

 

2. Are There Any Drawbacks Of Investing In Gold?

 

There are also a few downsides linked to investing in gold. Let's find out what they are:

 

  • Gold investment offers a small return. Its long-term returns are comparatively lower than other investment options.

  • It attracts dealer commissions, delivery charges, storage charges, security fees, and insurance.

  • Storing a physical form of gold is risky

  • No ongoing income in the form of dividends (stocks), rent (real estate), etc. 

 

 

3. What Is The Best Gold Investment Option In Australia?

 

Once you have decided to invest in gold, the next step is to find the best gold investment option.

 

 

Jewellery

 

Due to the markups and low resale value, there may be better options than investments in jewellery.

 

If you want to buy gold in physical form, you can look for other options, such as gold bars and coins.

 

 

 

The Physical Form of Gold

 

Many people like gold in the physical form to touch. If you are one of them, buying gold bars and coins are ways to invest in this asset.

 

Gold coins are the cheapest way to buy gold due to their small size. They are convenient to buy and liquidate when needed.

 

Gold bars are comparatively larger and more expensive than the former option. When choosing this option, you need to consider the markup prices and make proper arrangements for the storage and security of gold.

 

 

Gold Certificates

 

Buying gold in this form gives you direct exposure to gold and avoids needing to own it physically.

 

The company that owns the gold issues gold certificates. The Perth Mint is one of the popular places to buy gold certificates. 

 

The Western Australian government's support makes it a credible place for your investment objectives.

 

 

Gold ETFs

 

Gold ETFs are a great way to own gold as it takes away the hassle of storing physical gold or dealing with volatility, fast pace, and margins of the futures market.

 

ETF is a better option over bullion as it is easily redeemable for cash at the prevailing market price on any trading day. Also, gold ETFs offer more liquidity and convenience than physical gold. 

 

However, you should note that, just like stocks, ETFs are subjected to market volatility and incur commission and management fees.

 

With no markups and storage risks, it is more convenient to manage than physical gold. Not only does it protect your investment, but it helps obtain the most value for your holdings.

 

Here are the most common Gold-themed ETFs that you can find on the ASX:

 

  • BetaShares Global Gold Miners ETF

  • BetaShares Gold Bullion ETF

  • ETFS Physical Gold

  • Perth Mint Gold

  • VanEck Vectors Gold Miners ETF

 

 

 

Gold Mining Shares

 

Investors don't favour physical gold because it is unproductive and has no growth potential. In other words, the value of gold is likely to remain the same even after ten years.

 

Considering this, many investors have switched to gold mining shares. In this method, you buy shares of gold mining firms whose value fluctuates just like the gold commodity price.

 

By choosing this option, investors benefit from an increase in share value with the rise in miners' profits and the increase in the company's production over time.

 

However, to decide on the best share for gold investment, consider the company's mining cost, current mine portfolio, and growth opportunities in existing and new mining fields. It is best to deal with only reputed mining firms and avoid small miners.

 

 

The Futures Market

 

You can trade Futures contracts on the ASX. It is a contract between buyers and sellers to trade a certain amount of gold at a specified price and date. With the fluctuations in the price of gold, the value of the contract also fluctuates.

 

Futures contracts are a highly leveraged, time-consuming, and complex investment that can magnify gains and losses. Because of that, future market investments are not the best option for beginners.

 

 

4. Steps To Buy Gold Online In Australia

 

If you want to take advantage and profit from the increasing gold price, then you can invest online and buy gold shares:
 

 

Step 1: Open A Trading Account

 

Open a CFD or stock trading account that lets you buy and sell spot gold, gold ETFs, stocks and futures.

 

To buy gold in Australia with eToro, open an eToro Trading Account. It gives you access to various leading markets worldwide.

 

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Step 2: Understand What Moves Gold

 

Understand what factors move the gold markets, such as the US dollar, political insecurity, global demand, interest rate, and mining production.

 

 

Step 3: Choose How You Want To Invest in Gold

 

Decide how you want to invest in gold, such as via Gold ETFsstocks, or Futures.

 

Some of the largest and most popular ASX-listed gold stocks traded in Australia:

 

  • De Grey Mining shares

  • Evolution Mining

  • Newcrest Mining

  • Regis Resources Limited

  • St Barbara Ltd

  • Northern Star Resources

  • West Africa Resources

 

 

Step 4: Craft Your Investment Approach

 

Create an investment strategy to decide whether to invest in gold short or long-term.
 

 

Step 5: Leverage Trading Resources

 

Use in-platform trading and investing tools, such as technical indicators, trading signals, and expert technical and fundamental analysis, to find the right investment opportunity.

 

 

Step 6: Initiate Your First Gold Trade

 

Start your first investment in gold by choosing your gold market/stock/ETF, specifying trade size, and clicking on the ‘buy’ or ‘sell’ button.

 

 

 

5. What Is The Most Popular Way To Invest In Gold In Australia?

 

Buying gold comes with options, each having its pros and cons. 

 

One common method is getting physical gold or gold bullion, but buying from trustworthy dealers in Australia is essential.


Consider investing in gold stocks or ETFs through the stock market for a diversified portfolio with gold exposure.


ETFs are good for avoiding the risks of owning physical gold. With this option, you track the value of gold or stocks in gold-related companies.
If you're thinking about individual stocks, understand stock market ups and downs.


Lastly, you can buy gold futures if you want to use leverage for potential gains from rising gold prices. Brokers offer high leverage, letting you own more gold with a smaller investment.


But remember, if the market goes the wrong way, you could lose big and quickly with leveraged investments. So, be aware of the risks before diving in.


Here are the pros and cons of different gold investment types:

 

Investment Option Advantages Drawbacks
Gold Jewellery
  • Convenient to buy

  • Tangible

  • High cost of making and mark-ups

  • Uncertain resale price

Physical Gold

(Bar, coins, Bullion)
  • Tangible

  • Direct Exposure to gold

  • Storage issues

  • Liquidation problems

  • Mark-up cost

Gold ETF’s
  • Direct Exposure to gold

  • No storage issues

  • Offer high liquidity

  • Commission and Management Fee

  • Profits are limited to the changes in share price

Gold Mining Shares
  • Upside from the development of mines

  • Regularly track gold prices

  • Indirect exposure to gold

  • Risks related to mine operation

Gold Certificates
  • Direct Exposure to gold

  • No storage issues

  • Only good if they are company supported

  • Few companies issue them

  • Offers high liquidity

Gold Miner ETFs
  • Indirect Exposure to gold

  • Risks related to mine operation

  • Exposure to other different commodities
Future contracts
  • Little upfront capital is required to control a large amount of gold

  • Good Liquidity

  • Indirect exposure to gold

  • High leverage offered

  • Limited time contracts

 

 

 

 

6. How To Invest In Gold In Australia For Beginners?

 

Considering gold as a volatile investment, beginners should not invest too much of their funds in gold to diversify their portfolios.

 

Out of all the different investment options, gold Exchange Traded Funds or ETFs are a popular way to invest in gold.

 

It gives you direct exposure to gold. Also, shareholders benefit from its high liquidity and ability to invest directly in different forms of physical gold, such as bars, bullion, and coins. You can find online brokers offering the facility to invest in gold ETFs in Australia.

 

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Buy Australian & international shares with unlimited commission-free trades. (No brokerage). Other fees apply.

 

Always seek the help of a professional financial advisor before making any investment decision. Investing carries risk. The above are just some general options for educational purposes. All these options come with risk. This is not financial advice.

 

 

7. How And Where To Buy Gold In Australia Online?

 

Online Gold investment is a favourable option for those who:

 

 

Choose any of the following options to invest in this precious asset:

 

  • Buy and store physical form of gold

  • Invest in gold ETFs or gold stocks through the stock market 

  • Trade gold on the futures markets as CFDs

 

A comparison of online brokers that trade in gold stocks, ETFs, and CFDs:

 

(eToro Service ARSN 637 489 466 Capital at risk. See PDS and TMD)

 

 
Name Markets Served Brokerage Charges Inactivity Fee Global Presence
eToro ASX shares Global Shares ETFs Depends on Asset Yes Yes
Saxo Capital Markets ASX shares Global Shares ETFs $5 No Yes
Self-Wealth ASX shares

US Shares
$9.5 No Yes
IG Share Trading Global Shares ASX shares $8 N/A Yes
CMC Markets Invest ETFs, ASX shares, mFunds, Global shares $0 No Yes

 

 

 

 

8. How To Buy Gold Coins In Australia?

 

Consider the following tips when buying physical gold in Australia:

 

  • Go for a registered and reputable gold dealer, as it gives assurance of authenticity and high-quality gold coins. Banks, online marketplaces like eBay, precious metal forums, or specialist online gold dealers are some places you can consider for purchase.

  • Ensure the purity of gold is at least 91%, which shows it is robust and can withstand the test of time. Check with the dealer whether the gold is refined and produced by a recognized and trusted manufacturer. 

  • Ask about the commission and fees charged by the dealer. Compare them among different dealers to get competitive pricing. 

  • Compare the dealer gold price (USD) with the gold prices in Australian dollars.

  • Find out when and how the gold will reach you. Also, check whether it is insured if things go wrong during its delivery.

  • Arrange for a secure location to store your gold investment, such as secure vault storage, safety deposit boxes, at home or bullion dealers.

  • Get an insurance policy to protect yourself against natural disasters or theft.

 

Below is a comparison of the top gold coins dealers in Australia:

 

Name Area Served Storage Fee Delivery Fee

ABC Bullion

Online, Perth, and Sydney

1.5% per year

$25 per kg + 1% insurance fee

KJC Online and Sydney $0 to $1 million - 0.75% per year $30 + $1.95 per oz
Ainslie Bullion Online and Brisbane $13/oz per year Calculated based on location and weight
Gold Online, Sydney and Melbourne From $300 to $3,000 per year based on size Calculated based on location and weight
Jaggards Online and Sydney $252 to $1018 based on size Calculated based on location and weight

 

 

9. How To Buy Gold Coins Safely?

 

Various offline and online stores sell gold coins in Australia.

 

The Australian Bullion Company is the oldest and most privately run precious metals wholesaler and retailer. If you want to know where to buy gold in Melbourne, this is the best place for all your gold needs.

 

Established in 1972, the company is nationally and globally recognized for selling a superior range of LBMA-accredited ABC Bullion gold coins, bars, and bullion in Australia.

 

In addition to it, there are a few banks and online gold bullion dealers that also sell gold coins. 

 

 

 

10. Are Earnings From Gold Bullion Tax Deductible?

 

You do not need to pay GST if you buy or sell gold bullion (of at least 99.5% purity). However, you may incur capital gains tax if your investment increases in value and you sell. 

 

The capital gains tax payable is determined based on the duration you have held your investment.

 

 

11. Frequenly Asked Questions (FAQs)

 

 

Can You Buy Gold From Banks in Australia?

 

None of the top four banks in Australia, i.e., Common Wealth Bank, ANZ Bank, NAB Bank, and IG Bank, sell gold to its customers. However, if you want to buy from a bank, research to identify which banks offer this service.

 

 

Is It Legal To Own Gold Bars in Australia?

 

Gold bars are a popular form of gold investment in Australia. They are an easy way to get market exposure for those new to gold investing.

 

In Australia, you can legally buy and invest in gold bars. Prominent gold bullion dealers like ABC Bullion provide a vast selection of gold bars and coins at competitive prices.

 

If you plan to buy or sell gold bullion or coins below $5000, you don't need to provide personal identity verification documents unless requested.

 

 

Do You Pay Tax on Gold in Australia?

 

Australia has several laws and regulations concerning gold taxation.

 

The Australian Taxation Office considers gold a capital gains tax (CGT) asset. It implies that if you profit from buying and selling gold, you must pay CGT to the government.

 

The amount of CGT payable is the difference between the buying and selling price of the gold. Investors who hold gold for over 12 months before selling are eligible for a 50% CGT discount.

 

 

 

What Are The Most Popular Gold Stock on ASX?

 

A wide range of gold stocks and ETFs are listed in Australia. Some popular gold stocks that trade on the ASX include:

 

  • Newcrest Mining (NCM)

  • Northern Star Resources (NST)

  • Evolution Mining (EVN)

  • Regis Resources Limited (RRL)

  • West Africa Resources (WAF)

  • St Barbara Ltd (SBM)

  • De Grey Mining (DEG) shares

 

Always seek the help of a professional financial advisor before making any investment decision. Investing carries risk. The above are just some general options for educational purposes. All these options come with risk. This is not financial advice.

 

 

Which Are The Most Popular Gold ETFs in Australia?

 

Gold-themed ETFs track the price movements of the commodity (gold) or stocks in multiple companies with gold exposure, like gold mining companies.

 

Below we have some of the most popular gold-themed ETFs listed on the ASX:

 

  • VanEck Vectors Gold Miners ETF (ASX: GDX)

  • BetaShares Gold Bullion ETF – AU Hedged (ASX: QAU

  • ETFs Physical Gold (ASX: GOLD)

  • BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS)

  • Perth Mint Gold (ASX: PMGOLD)

 

Investors should note that these options come with a certain risk level, and there's no guarantee of making a profit.

 

Always seek the help of a professional financial advisor before making any investment decision. Investing carries risk. The above are just some general options for educational purposes. All these options come with risk. This is not financial advice.

 

 

How Much Should You Invest In Gold?

 

One should refrain from investing large amounts of money into gold.

 

Most people limit their gold investment to under 10% of their overall share portfolio to lower the exposure and risk potential.

 

The real benefit comes from the diversification that gold can offer. After building your gold position, balance your portfolio periodically so that your comparative exposure to it remains the same.

 

 

 

When Should You Buy Gold?

 

Most people buy gold in periods of inflation, uncertainty, underperformance, and volatility in the market. However, it is recommended to buy gold in small amounts over time. 

 

When the gold price is high, gold-themed stock prices also rise. At those times, you can use dollar-cost averaging to minimise the impact of volatility when buying a large chunk of commodity and maximise your profits.

 

Also, diversifying your investment in different gold stocks and holding it for a longer term will benefit you in the long term.

 

Always seek the help of a professional financial advisor before making any investment decision. Investing carries risk. The above are just some general options for educational purposes. All these options come with risk. This is not financial advice.

 

 

What Is The Safest Way To Buy Gold in Australia?

 

None of the gold investment options is 100% risk-free.

 

In other words, each option carries different types of risks. Physical gold carries storage-related risks, while electronic or paper-based gold is subjected to market risks. 

 

Many banks nowadays offer storage lockers at reasonable charges that can help reduce the stress of storing gold at home. At the same time, diversifying your investment in a range of gold stocks or ETFs can help safeguard your portfolio during market downturns.

 

Based on your risk appetite and preference (local or online), you can determine the relatively safer option for gold investing.

 

 

What Are The Disadvantages of Investing in Gold?

 

An investment in gold offers several benefits, but it also has some downsides, such as:

 

  • Long-term returns for gold tend to be steady but lower than other investment options. Given that gold doesn't fall rapidly, it also doesn't rise quickly; there may be better investment tools for significant returns.

 

  • Owning physical gold comes with different fees, such as dealer's commission, delivery, storage, insurance, and security charges.

 

  • Like other investment options that provide interest, dividends, or rent, investment in gold doesn't provide regular income.

 

 

 

How Much Gold Can You Buy Without Reporting in Australia?

 

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 states that the legal limit to buy physical gold without reporting is $10,000. It implies that if you purchase physical gold worth more than AUD 10,000, you must report it to the government.

 

However, you don't need to report gold to the government if you buy gold via ETFs or other financial products. Failure to abide by the legal limits can lead to hefty fines and legal consequences.

 

The imposition of legal limits prevents money laundering and other criminal activities. Reporting on bulk purchases of physical gold makes it easier for the government to track the money movement and identify suspicious transactions.

 

To exceed this limit, you must provide personal identification and other details to the Australian Transaction Reports and Analysis Centre.

 

 

What Is The Best Gold To Buy in Australia?

 

Gold bullion could be the best investment option in a secure market. It allows new investors, as well as regular traders, to stay afloat during times when the value of other assets is dipping.

 

Unlike ETFs, where the gold is not directly 'yours,' investors get the full legal title of the gold they buy gold bullions.

 

Furthermore, gold bullions are safer due to non-exposure to market risks. Investors who can't bear the market's higher uncertain and volatile nature can consider buying gold through a bullion option.

 

Another good thing about this investment option is that you can easily buy it online from home. ABC Bullion is the largest independent bullion dealer in Australia.

 

You can find an extensive range of gold bullion (bars and coins) from accredited refiners at the most competitive prices.

 

 

 

What is The Difference Between Gold and Gold ETFs?

 

Both physical gold and gold ETFs have their benefits and carry distinct risks.

 

To know what is the smartest way to buy gold between these two options, you need to consider several factors, such as:

 

  • Your necessity and investment purpose 

  • Preference 

  • Risk appetite (storage risk vs. market risks)

  • Investment strategy

  • Investment horizon

  • Ease of access and selling

  • Tax

  • Premiums and commissions, etc. 

 

 

Physical Gold vs. Gold ETFs:

 

  • Physical gold has storage-related concerns, while gold stocks or ETFs expose you to all the usual risks associated with the stock market, such as company bankruptcy, market volatility/price movements, and the possibility of investment loss.

 

  • When you buy physical gold, you must be careful about its purity and quantity. You need to watch out for the high premiums, the rarity of the gold coin, or the artistic work of the gold jewellery. While gold ETFs are devoid of such risks.

 

  • When you buy physical gold, you have to pay for a variety of charges, including making charges and storage costs. ETFs also charge management fees that can lower your returns. However, buying physical gold directly from a reputed dealer like Royal Australian Mint can save you from middle-man costs. Also, most dealers offer discounts if you buy gold in bulk, i.e., more than 100 ounces, making it profitable.

 

  • However, physical gold is valuable, especially when stock markets sour or interest rates increase. At such times, gold ETFs may not be a secure and profitable investment option.

 

  • Gold ETFs are superior to physical gold for the ease of buying they offer investors. You can buy Gold ETFs with just a button in your trading account. However, in the case of physical gold, you need to compare several dealers on charges, reputation, range of selection, etc., which makes it tedious and time-consuming.

 

  • The various charges associated with physical gold may make it less tax efficient than gold ETFs.

 

  • Ease of access is another crucial factor differentiating both investment options. A physical gold ETF provides quick access to the commodity instead of taking the risk of holding physical gold bars yourself.

 

  • Gold ETFs are comparatively more liquid and easier to liquidate. You can sell ETFs instantly with a click of a button however selling physical gold takes time.

 

  • Physical gold gives you full legal ownership when you buy it. On the contrary, purchasing gold ETFs doesn't give you direct entitlement. It means when you buy ETFs, you don't own gold.

 

  • You can lose your ETF value if the market takes a downturn. Investors should note that there is no assurance that you will profit from a gold ETF. This and the physical gold acting as a hedge against inflation become the key reasons why people still prefer buying physical gold over gold's ETF.   

 

 

 

If you are still thinking, is investing in gold or ETF better? The best gold investment option depends on your preference, knowledge (in physical gold or ETFs), and the risks you are willing to take.

 

Some people prefer the traditional approach of owning a tangible asset. They like visiting gold dealers, comparing available gold options, and buying physical gold while knowing its storage risks.

 

On the other hand, many people prefer gaining direct exposure to the metal via gold stocks or ETFs than dealing with storage and insurance issues linked to owning physical gold.

 

They like comparing, investing, and diversifying their money in gold stocks and ETFs while being aware of the fluctuating and uncertain nature of the market.

 

 

What Is The Most Profitable Way To Buy Gold?

 

Gold stocks and ETFs can potentially deliver high returns on your investment.

 

However, higher returns also come with higher risks of volatile and uncertain markets. If you have a greater risk appetite and are looking for higher returns, ASX-listed gold stocks are the way to go.

 

Movements in the share prices of these gold-backed companies can magnify gains and losses on the gold price and sink or swim on their merits.

 

There are more than 150 gold stocks on the ASX, comprising established giants, near-term producers, mid-tier producers, larger explorers, and junior explorers.

 

Understanding the differences between the categories and what they do will help make your gold stock investment successful.

 

Some general listed companies:

 

 

Established Giants:

 

  • Newcrest Mining Ltd [ASX: NCM] 

  • Northern Star Resources Ltd [ASX: NST]

  • Evolution Mining Ltd [ASX: EVN]

 

 

Mid-Tier Producers:

 

  • Saracen Mineral Holdings Ltd [ASX: SAR]

  • Regis Resources Ltd [ASX: RRL]

  • Silver Lake Resources Ltd [ASX: SLR]

  • St Barbara Ltd [ASX:SBM]

 

 

 

 

Recent or Near-Term Producers:

 

  • Gold Road Resources Ltd [ASX: GOR]

  • Red 5 Ltd [ASX: RED]

 

 

Large Explorers:

 

  • De Grey Mining Ltd [ASX: DEG] 

  • Chalice Gold Mines Ltd [ASX: CHN]

 

 

Always seek the help of a professional financial advisor before making any investment decision. Investing carries risk. The above are just some general options for educational purposes. All these options come with risk. This is not financial advice.

 

 

Does Gold Do Well During Inflation?

 

Yes. Most investors consider gold the ultimate safe-haven hedge during currency devaluation, financial meltdowns, inflation or deflation, and geopolitical risk.

 

In the past, during the most severe recession periods worldwide, gold prices remained intact and even grew. So, people who invested in gold were not significantly affected. Even during periods of deflation, gold holds its purchasing power, and its value doesn't diminish.

 

It happens because the above economic uncertainties indirectly impact gold prices. As prices hike across the economy, investors start accumulating more gold and other valuable metals to conserve the buying power of their dollars. This higher demand contributes to the yellow metal rally during periods of high inflation.

 

Furthermore, being a rare metal, gold can never be an oversupply in the market. Due to this, it rarely loses its value since there. Considering the current mines get depleted, gold commodities will likely rise even higher.

 

Australia is one of the most stable and safest countries across the globe. Historically, gold has given consistent and decent returns over the long term. Your gold will most likely be valuable despite national or global economic crises. 
 

 

 

Is Gold Better Than Cash In The Bank?

 

Cash on hand helps deal with emergencies, but gold protects your investment in challenged economic environments and is a saving vehicle.

 

There are different situations to park your money in gold or cash:

 

 

Reasons To Hold Gold:

 

  • Gold has intrinsic value.

  • Gold acts as a sound portfolio stabiliser. 

  • Gold performs well and protects an investment portfolio during poor economic times. In those cases, most companies fail to deliver on earnings, and their stock prices fall, but gold holds on to its intrinsic value and retains its buying power.  

  • Gold is a durable precious metal you can easily sell online or at a pawn shop in just a few minutes.

  • Gold is divisible and serves as a medium of exchange for smaller items.

  • Gold can survive natural disasters and can't wither away over long periods.

  • Gold is a conventional long-term inflation hedge. It has the potential to lessen volatility in an investment portfolio.

  • The low correlation of gold to conventional assets like bonds and stocks makes it a good portfolio diversifier. 

 

 

Reasons To Hold Cash:

 

  • Cash is a divisible and durable currency. You can transfer and trade it at any amount.

  • Cash kept in a bank accrues interest and helps grow your savings.

  • Cash is a low-risk asset that doesn't helps fluctuate in the short term. This way, it helps minimise risk in a volatile stock market. 

  • Cash is a liquid asset, which makes it the best option for daily transactions. You can quickly deposit or withdraw cash from the bank or use it to buy goods and services. 

 

However, holding too much cash is also not good. It has no intrinsic value and holds value only because it is a legal tender and a medium of exchange. Also, cash can lose its purchasing power in the long term due to inflation over time. 

 

Due to this, you must have both gold and cash. Cash is a great contingency fund for unexpected expenses or short-term financial needs. Though cash gives you mental comfort, allocating too much cash won't contribute to building wealth.

 

Diversifying cash into assets like gold helps protect the value of your wealth in the long term.

 

Always seek the help of a professional financial advisor before making any investment decision. Investing carries risk. The above are just some general options for educational purposes. All these options come with risk. This is not financial advice.

 

 

12. Conclusion

 

Whether you are looking to hedge against inflation, diversify your investment portfolio, or protect your wealth, gold can be a feasible choice.

 

However, you must know that the investment in gold involves certain risks and fees and may not match the returns you get with other investment options.

 

Before investing, consider your circumstances, research and explore the pros and cons of available options. When in doubt, seek the help of a trusted financial adviser to ensure you make the best out of your investment.

 

If you don't have a trading account yet, consider eToro, which is used by many investors in Australia and worldwide. You can create an eToro trading account HERE.

 

(eToro AUS Capital Ltd ACN 612 791 803 AFSL 491139. OTC Derivatives are speculative and leveraged. Not suitable for all investors. Capital at risk. See PDS and TMD)

 

 

 

The advice and information on OzStudies.com is in general nature and should not be seen as a replacement for independent financial advice. We strongly encourage readers to consult with financial experts regarding their own financial decisions and investments.


Please note that the information presented on OzStudies.com is solely for educational purposes. Every individual's financial situation is unique, and the products and services we mention may not suit everyone. We do not provide financial advice, advisory, or brokerage services nor endorse buying or selling specific stocks or securities. It's essential to know that information might have changed since publication and past performance does not guarantee future results.

 

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