Gold Investment in 2025: Best Ways to Invest and Top Gold ETFs

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đź“Ś Table of Contents

  1. Why Is Gold Price Rising in 2025?

  2. Why Investors Turn to Gold During Uncertainty

  3. Different Ways to Invest in Gold

    • Physical Gold

    • Gold ETFs

    • Gold Mining Stocks

    • Gold Futures and Derivatives

  4. Advantages and Disadvantages of Gold Investment

  5. Best Gold ETFs for Australian Investors in 2025

  6. Who Should Invest in Gold?

  7. Final Thoughts

1) Why Is Gold Price Rising in 2025?

In 2025, gold prices have been climbing steadily. Several global factors are driving this trend:

  • Falling interest rates in major economies, including Australia, making non-yielding assets like gold more attractive.

  • Geopolitical tensions in Europe and Asia, increasing demand for safe-haven assets.

  • Weakening currencies against the US dollar, boosting gold’s appeal as a store of value.

  • Strong central bank demand, as many countries diversify reserves away from US treasuries.

As a result, gold is now considered one of the most important hedges in a diversified portfolio.

2) Why Investors Turn to Gold During Uncertainty

Gold has historically been a “safe haven.” Unlike stocks or property, its value doesn’t depend on corporate profits or rental yields. Instead, it:

  • Protects against inflation

  • Holds value in currency devaluation

  • Acts as a portfolio stabiliser when equities fall

  • Provides diversification beyond traditional assets

In periods of market volatility, gold often moves in the opposite direction to riskier assets, helping balance portfolios.

3) Different Ways to Invest in Gold

a) Physical Gold

Buying gold bars or coins remains a traditional approach. However:

  • Pros: Tangible asset, full ownership

  • Cons: Storage, insurance, transaction costs

b) Gold ETFs

Gold Exchange-Traded Funds (ETFs) are the most convenient way to invest. They track gold prices without the need to physically store gold.

c) Gold Mining Stocks

Investing in mining companies (like Newcrest Mining in Australia or Barrick Gold globally) offers leveraged exposure to gold prices. But profits also depend on operational efficiency and costs.

d) Gold Futures and Derivatives

For experienced traders, futures allow speculation on gold’s price direction. However, they are complex and carry higher risks.

4) Advantages and Disadvantages of Gold Investment

Advantages

  • Hedge against inflation and currency depreciation

  • Strong historical store of value

  • Diversifies investment portfolio

  • Highly liquid through ETFs and futures

Disadvantages

  • No dividends or interest income

  • Short-term volatility can be high

  • Long-term returns often lower than equities

  • Physical gold has storage and insurance costs

5) Best Gold ETFs for Australian Investors in 2025

If you want easy exposure to gold without owning it physically, here are some of the most popular ETFs:

  • GOLD (ETFS Physical Gold, ASX)

    • Direct exposure to gold bullion stored securely

    • Tracks the spot price of gold in AUD

  • PMGOLD (Perth Mint Gold, ASX)

    • Government-backed ETF linked to physical gold at the Perth Mint

    • Low management fee (0.15%)

  • IAU (iShares Gold Trust, US)

    • Listed on the NYSE, one of the largest global gold ETFs

    • Good option if you invest internationally

  • GLD (SPDR Gold Shares, US)

    • One of the oldest and most liquid gold ETFs globally

    • Tracks the US dollar spot price of gold

For Australian investors, GOLD and PMGOLD are the simplest choices as they are traded directly on the ASX.

6) Who Should Invest in Gold?

Gold is not for everyone. It is best suited for:

  • Investors seeking portfolio protection during volatile times

  • Those worried about currency devaluation or inflation

  • Long-term investors looking to diversify beyond stocks and property

Generally, financial advisers suggest allocating 5–10% of your portfolio to gold as a hedge, rather than making it your main investment.

7) Final Thoughts

With global uncertainty and falling interest rates in 2025, gold has become an increasingly attractive investment. While it doesn’t generate income like dividends or rent, it provides stability and protection when other assets struggle.

For most investors in Australia, Gold ETFs like GOLD and PMGOLD offer the easiest and most cost-effective way to gain exposure. Combined with equities, property, and cash, gold can strengthen your portfolio’s resilience against unexpected shocks.

Remember: Gold works best as part of a balanced strategy, not a stand-alone bet.