Best Gold ETFs To Buy In Australia For 2024

When considering investment options, gold has consistently been a favored choice due to its stability and intrinsic value. Historically, investors invested assets in gold as a safeguard against turbulence in global financial markets, inflation, and economic uncertainty.

Gold price has witnessed massive price rally so far in 2024. On October, gold price once again hit another all-time high. This is mainly due to the intense tensions in the Middle East, uncertainty around the presidential election in the United States (US), as well as interest rate cuts by major central banks.

Under such favourable circumstance, gold ETFs are expected to bring considerable returns around the world, including Australian. Then, What is gold ETFs? What are the best gold ETFs in Australia in 2024? In this article, we will explore and analysis the best gold ETFs in Australia.

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Table of Contents

What are Gold ETFs?

Pros and Cons of Investing in Gold ETFs

How to Invest in Gold ETFs in Australia?

Best Gold ETFs to Buy in Australia for 2024

Perth Mint Gold (ASX:PMGOLD)

BetaShares Gold Bullion ETF (ASX:QAU)

VanEck Gold Bullion ETF (ASX:NUGG)

Global X Physical Gold (ASX:GOLD)

Betashares Global Gold Miners ETF (ASX:MNRS)

Conclusion

How to Buy Gold on BTCC?

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What are Gold ETFs?

Gold ETFs, which trade similarly to stocks, have emerged as a highly favored investment vehicle and represent commodity funds. These ETFs offer a convenient route to gaining exposure to both gold prices and gold-mining stocks, without the need to purchase the underlying physical assets. For investors with limited funds, gold ETFs provide a flexible means to gain exposure to the asset class and efficiently enhance the degree of diversification in their portfolios.

Generally speaking, there are many types of gold ETFs. The major types of gold ETFs include:

Gold Price ETF: it refers to ETFs that track the price of gold bars, some ETFs actually buy gold bars, whle others invest in gold futures, but their common goal is to track the gold price and ensure that the net value of the ETFs is in line with the spot gold price.

Gold Miners ETF: it refers to ETFs that buy shares of gold-mining companies. In general, gold miners ETFs are mostly used for short-term trading instead of long-term holding.

Inverse Gold ETF: it refers to ETFs that are the opposite of gold, also known as Short Gold ETFs. These ETFs use leverage instruments such as stock index futures, swap contracts, and are designed to provide the opposite multiple of earnings to the target index (e.g. -1, -2, -3).

Leveraged Gold ETF: Leveraged Gold ETFs are a kind of gold ETF that uses leverage to primarily amplify the volatility of gold prices. Leveraged gold ETFs are characterized by large gains, which can amplify the opportunity for profit and loss, but also magnify trading costs.

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Pros and Cons of Investing in Gold ETFs

With the surge of gold prices, a large number of investors poured into the gold ETF market. However, just like any other investment method, investing in gold ETFs carries with both opportunities and risks.

The following chart sets forth the pros and cons of investing in gold ETFs.

How to Invest in Gold ETFs in Australia?

In Australia, it is easy to invest in gold ETFs. Here’s how to buy shares in a gold ETF:

Step 1: Find a gold ETF

You can typically find gold ETFs by searching for them on your broker’s website.

Step 2: Analyze the ETF

It’s important to research ETFs before buying, just as you’d research stocks. There are many important metrics that you can analyze. Among them the most significant two data you need to know its the ETF’s five-year returns and expense ration.

Step 3: Buy the gold ETF

Investors can buy ETFs just like buying a stock, through an online broker. A good approach is to buy them regularly to take advantage of dollar-cost averaging.

Best Gold ETFs to Buy in Australia for 2024

As market sentiment turns quite positive for gold, gold ETFs is drawing great attention of all savvy investors from all kinds of life in Australia. Next, we will list the top three gold ETFs to invest in Australia for 2024.

Perth Mint Gold (ASX:PMGOLD)

Owned by the Western Australian government, Perth Mint Gold is an Australian mint institution with a long history, and its gold products enjoy a worldwide reputation. PMGOLD is an ETP product offered by the Perth Mint, tracking the international price of gold in Australian dollars. Investments are backed by gold bullion stored in the Perth Mint.

Notably, Perth Mint Gold is the only gold product on the ASX that maintains a government guarantee for holdings. Besides, this ETF only charges a management fee of 0.15 percent, making it the lowest-cost physical gold ETF on the ASX.

BetaShares Gold Bullion ETF (ASX:QAU)

Backed by gold bullion stored by JPMorgan Chase in London, the BetaShares Gold Bullion ETF tracks the price of physical gold. Although the ETF is based on physical gold, investors do not own physical gold by owning the ETF. Rather, when investors sell shares of their ETF, they receive the cash equivalent of the gold.

Notably, the ETF is hedged into Australian dollars, which means that any fluctuations in the value of the US dollar (or other currencies in which gold is priced) against the Australian dollar are mitigated. This can help protect investors from currency risk. This ETF has a relatively low management fee of 0.59 percent, making it a cost-effective way to invest in gold.

VanEck Gold Bullion ETF (ASX:NUGG)

Established in December 2022, the VanEck Gold Bullion ETF enables investors to gain exposure to the gold market without the hassle of buying, storing, and insuring physical gold. It is backed by physical gold bullion bars sourced from Australian gold producers.

As an ETF listed on the ASX, the VanEck Gold Bullion ETF offers high liquidity, allowing investors to buy and sell shares easily through their brokerage accounts. Notably, this ETF has a management fee of 0.25 percent and since its inception has returned 21.36 percent, making it a attractive option for investors to invest in gold.

Global X Physical Gold (ASX:GOLD)

Previously known as ETFS Physical Gold, Global X Physical Gold is an ETP that promises a “low-cost and secure way to access physical gold via the stock exchange,” while avoiding the struggle of storage. As an ASX-listed ETF, Global X Physical Gold is highly liquid and investors can buy and sell on the exchange at any time to meet their investment needs. This ETP has a management fee of 0.4 percent.

The entity is backed by gold held in a London vault by JPMorgan Chase (NYSE:JPM). Investors can redeem shares for physical gold, not just the cash equivalent; however, this comes with a fee of AU$1,000 per redemption. Global X’s website suggests that for smaller orders, a more cost-effective option is selling units on the secondary market.

Betashares Global Gold Miners ETF (ASX:MNRS)

Betashares Global Gold Miners ETF (ASX: MNRS is an exchange traded fund (ETF) focused on global gold mining companies issued by BetaShares and listed on the Australian Securities Exchange. Its top holdings include Newmont, Barrick, Agnico Eagle and royalty company Wheaton Precious Metals (NYSE:WPM,TSX:WPM). The Betashares Global Gold Miners ETF aims to provide investors with investment returns linked to the price of gold and the performance of the gold mining industry by investing in gold mining companies worldwide.

The Betashares Global Gold Miners ETF allows Australian investors to add a diverse range of global companies in the gold mining space to their portfolio by focusing on the biggest ex-Australia precious metals companies. This ETF has a management fee of 0.57 percent, making it a attractive option for Australian investors to invest in gold.

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Conclusion

After analysis, the best gold ETFs in Australia in 2024 include Perth Mint Gold (ASX:PMGOLD), BetaShares Gold Bullion ETF (ASX:QAU), VanEck Gold Bullion ETF (ASX:NUGG), Global X Physical Gold (ASX:GOLD) and Betashares Global Gold Miners ETF (ASX:MNRS). Despite gold ETFs provide investors with a convenient, flexible and low-cost gold investment channel, investors still should fully understand market dynamics and risks before investing, and make decisions based on their own risk tolerance and investment objectives.

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Step One: go to the BTCC homepage and log in to your BTCC account. If you do not have an account, you need to register first.

Step Two: on the BTCC official homepage, choose “Deposite”, and then fund your account through your preferred method.

Step Three: go back to the BTCC official homepage, choose “Futures” -“USDT-M Perpetual Futures Contract”- “Tokenized Stocks & Commodities”, and find GOLDUSDT trading pair.

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Step Four: choose the contract trading order type. BTCC contract orders are divided into market orders, limit orders and SL/TP orders.

• Market Order: users place orders at the best price in the current market to achieve fast trading.
• Limit Order: Limit orders are a type of order to buy or sell futures at a price more favourable than the market price. When you buy at a price lower than the market price or sell at a price higher than the market price, the order will be in the form of a limit order.
• SL/TP Order: SL/TP orders are a type of order to buy or sell futures at a price less favourable than the market price. When you buy at a price higher than the market price or sell at a price lower than the market price, the order will be in the form of a SL/TP order.

Step Five: adjust the leverage multiple.

Please keep in mind that operating leverage carries the risk of liquidation. Leverage should be adjusted based on your financial status and risk tolerance.

Step Six: choose the lot size and set the SL/TP price .

Step Seven: after setting the basic data information, users can choose to buy (open long) or sell (open short) after entering their ideal price. Traders should remind that the price cannot be higher or lower than the highest buying price or lowest selling price of the platform.

Step Eight: click the buy or sell button, and GOLDUSDT futures contract order is completed.

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