One of the big pieces of news on the ASX in 2023 so far has been the surging gold price. Gold has been in an absolute tear of late. The precious metal started the year at around US$1,830 an ounce. But right now, gold is asking US$2,017 for that same ounce.
That's a year-to-date appreciation of roughly 10.2% – which is a pretty massive rise for just over three months.
So given the sharp rise in gold this year, many investors might be wondering how to get a piece of the action and invest in gold.
Well, here are two ASX shares that I would use to gain exposure to surging gold.
2 ASX shares I would use for gold price exposure
Newcrest Mining Ltd (ASX: NCM)
Newcrest is an ASX gold miner that I've owned for a number of years. It possesses several gold mines that are of the highest calibre. These include Newcrest's flagship Cadia mine in Orange, as well as the Lihir project in Papua New Guinea, and Canada's Red Chris operation.
With the highest available gold reserves out of any ASX gold mine, which represent more than 24 years of supply at current production rates, Newcrest is easily the largest gold company on the ASX.
Newcrest has been in the news this week following the takeover offer from the United States gold miner and global gold leader Newmont. This bid, priced at around $32.90 a share, has seen the Newcrest share price shoot up by more than 6% over the past week.
But I still think the company is a compelling choice for long-term gold bulls, regardless of whether Newcrest is swallowed up by Newmont.
Global X Physical Gold ETF (ASX: GOLD)
Next up we have an exchange-traded fund (ETF) to consider. The Global X Physical Gold ETF isn't a gold miner, but an ETF representing ownership of physical gold bullion. Its units are backed by gold bars and bullion, which are housed in a JPMorgan bank vault in London.
This ETF is a great choice for investors that just want exposure to the gold price itself, without the added risks of a miner. It is far cheaper than owning physical bullion yourself, which comes with significant storage and insurance costs.
Put simply, this ETF should rise and fall in value alongside the gold price itself. So this is another way ASX investors can simply and easily invest in the gold price on the ASX.
