3 minute read
PRECIOUS METALS ON THE RISE: investing in gold and silver
BY VICTORIA ARELLANO
In today’s investment landscape, diversification is crucial for building resilient portfolios. A recent report by the World Gold Council highlights how geopolitical risks, which are often sudden and unpredictable, can lead to financial market turmoil and damage investor portfolios. The report emphasises that, in assessing how various assets respond to sudden geopolitical risk spikes, gold’s strong performance during such events becomes evident.
Recently, the price of gold surpassed AUD 4,234 per ounce, reflecting a +35.32% increase over the past 12 months. Silver, on the other hand, has reached AUD 51.25, showing an impressive +41.45% rise in the same period.
Key factors include China’s economic stimulus measures and increasing demand for safe-haven assets. Additionally, escalating geopolitical tensions, particularly in the Middle East, have further boosted demand for both gold and silver.
WHY PRECIOUS METALS?
Physical precious metals come with no counterparty risk. Gold, in particular, can act as an insurance policy. It is a highly liquid asset that may protect against falling real estate prices, sporadic inflation, volatile global market conditions and geopolitical tensions. Investors also stand to gain if the value of gold or silver appreciates, as it has done consistently over the past decade.
In 2024, silver outperformed gold in terms of returns, positioning itself as an increasingly attractive option for investors. While silver is often seen as a more affordable alternative to gold, it offers much more than its reputation as a substitute. Silver is also a highly liquid and valuable industrial metal, playing a critical role in key sectors such as electronics, renewable energy and healthcare.
HOW TO INVEST IN PRECIOUS METALS
Gold Bullion Australia (GBA) provides a wide range of investment options. With an established presence across the country, including Sydney, Melbourne, Brisbane, the Gold Coast and the Sunshine Coast, GBA covers all aspects of precious metals, from physical bullion sales and buybacks to secure vaulting solutions and safe deposit box hire. Investors can easily purchase, store and access their holdings for withdrawal or inspection at any time, ensuring peace of mind and a seamless experience regarding the safety of their assets.
Trustees with a Self-Managed Super Fund (SMSF) can include precious metals in their portfolios. The most attractive options are bullion bars and Pool Allocated products. SMSF holders who acquire and store their precious metals using GBA’s insured vaulting services have access to online metal account statements, which provide current valuations, transaction histories and account details.
GBA also offers a portfolio management service at its Singapore division. This service uses advanced algorithms to manage investments across five precious metals based on the customer’s risk profile. All investments are backed by physical assets and fully audited for the client.
At Gold Bullion Australia, investing in precious metals is more than just a transaction. It marks the beginning of a carefully curated journey towards wealth preservation, growth and legacy-building. The company’s mission is to empower customers to make informed investment decisions and secure their financial future through the enduring value of precious metals, providing a stress-free investment experience that guarantees quality, integrity and expert guidance every step of the way.
