UPDATE: Gold prices have skyrocketed, now exceeding $3,500 an ounce, a dramatic increase from just $1,700 three years ago. This surge is creating a wave of interest among investors looking to capitalize on the precious metal’s rally.
The price of gold has surged recently due to a mix of ongoing geopolitical tensions, persistent inflation, and expectations of central bank easing. Central banks have become significant buyers, reinforcing gold’s status as a reliable hedge during uncertain times. Investors are watching closely as this trend continues to develop.
Why is gold so appealing? It has been trusted for thousands of years as both a currency and a stable store of value. Unlike paper assets, gold is not subject to inflation, corrosion, or the volatility associated with single companies or governments. Despite its historical stability, experts remind investors that gold has not consistently outperformed equities, averaging 6.7% returns annually from 1990 to 2025, compared to 8.1% for global stocks.
For many Australians, investing in physical gold can be impractical due to storage and insurance concerns. Enter exchange-traded funds (ETFs), which provide a straightforward way to gain exposure to gold prices without the hassle. Here are three ASX ETFs that are trending now:
1. Global X Physical Gold (ASX: GOLD)
This ETF offers a direct investment in physical gold bullion and has been listed on the ASX for over 20 years. Its goal is to track the Australian dollar gold price closely, minus a small management fee. The GOLD ETF is a solid choice for those wanting to invest in gold without the complexities of physical storage.
2. BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)
The QAU ETF not only tracks local gold prices but also hedges against fluctuations in the Australian dollar. This feature ensures investors have a clearer exposure to gold priced in US dollars, which can be particularly beneficial during currency volatility. Investors seeking a pure play on global gold movements may find QAU an attractive option.
3. VanEck Gold Miners ETF (ASX: GDX)
For those looking for a different angle, the GDX ETF invests in a portfolio of global gold mining companies, including several from the ASX 200. Over the past year, GDX has delivered impressive returns, exceeding 80% as it capitalizes on rising gold prices. However, this ETF carries higher risk, as mining stocks can experience more significant volatility.
As gold continues to capture attention with its record highs, the appeal of ETFs for Australian investors is clear. They offer an easy entry point into the gold market, allowing individuals to ride the wave of momentum without the complications of physical ownership.
The gold market is evolving rapidly, and investors should remain alert to these changes. With gold’s historical role as a safe haven, now is the time to explore how ETFs can fit into investment strategies. The momentum is building—investors are urged to act quickly to capitalize on this significant financial opportunity.
Stay tuned for more updates as this story develops.
