Gold and real assets
Gold has a role. The question is how much, and in what form.
Gold has been treated as a store of value for thousands of years. It pays no income and has little industrial use, yet investors keep coming back to it when inflation, currency or geopolitical risk is front of mind. For a private wealth portfolio, it can be a useful diversifier. It’s rarely the main event.
Ways to own it
Three common ways Australians hold gold
| Option | How it works | Things to weigh up |
|---|---|---|
| Allocated physical bullion | Specific, numbered bars or coins held in a vault in your name | Full ownership and no counterparty on the metal itself. Storage, insurance and dealer spreads add cost. SMSFs must keep it separate from members and can’t store it at home. |
| ASX-quoted gold-backed products | Units or securities backed by gold held by a custodian, bought and sold on the ASX | Easy to trade and hold on an investment platform. You rely on the product issuer and custodian, and pay an ongoing management fee. |
| Gold mining companies | Shares in businesses that mine and sell gold | Can pay dividends and may rise faster than gold in a strong market. They also carry company, cost and operational risk, so they can fall when gold doesn’t. |
Our approach
Sized to the job it’s doing
We look at what gold is meant to do for you: protect against a falling Australian dollar, offset share market risk, or simply give you peace of mind. Then we decide on the size of the holding, which structure should own it and the most cost-effective form. Your super fund, family trust and personal name can each be better suited to different options.
Beyond gold
Other real assets
Infrastructure, commercial property and agriculture can also behave differently from shares and bonds, and some offer income linked to inflation. Many of the better opportunities in these areas are open only to wholesale investors, which makes careful due diligence even more important.
Find out how we can help you develop your investment strategy
General information only. Gold prices can be volatile and gold produces no income. Past performance is not a reliable indicator of future performance. SMSF trustees should check their investment strategy and the relevant ATO rules before investing in collectables or precious metals.
