The popularity of gold as an investment has soared in 2024, thanks mostly to the precious metal's galloping price. Gold has gone from around US$1,855 an ounce this time last year to over US$2,600 today – a gain worth almost 40%. That's after the precious metal hit an all-time high of just over US$2,685 last month.
Gold has always attracted investors' attention. After all, it has been recognised as a store of value for thousands of years and has existed far longer than any stock market on earth.
Today, ASX investors have many different avenues to travel down if they wish to gain exposure to the yellow metal. Investors can always buy physical gold in the form of bullion bars and coins, of course. The physical ownership of an asset has always been one of gold's drawcards.
But for the less conspiratorially minded investors, gold exchange-traded funds (ETFs) have emerged as a viable alternative in recent years.
Investors can always go straight to the source, buying up shares of companies that directly own gold mines and profit from their extraction and sale.
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Silver as an investment
While silver is also a precious metal, it has never attracted quite the same lustre as gold. Silver shares many of the same traits as its heavier cousin, such as historical currency use and finite supply, but it has never attracted quite the level of interest that gold has.
That's despite silver also having a top run over the past 12 months. Back in October 2023, one ounce of silver would have set you back just over US$22. Today, that same ounce will cost you US$30.80, or 40% more.
It's just as easy for ASX investors to invest in silver as gold. Silver bullion is readily available, and several silver miners are listed on the ASX. Investors can even buy units of silver ETFs. The Global X Physical Silver ETF (ASX: ETPMAG) is one such example.
ASX expert picks silver over the yellow metal
Those investors who are attracted to gold as an investment might even be better off opting for silver right now. That's the view of one ASX expert, anyway.
As reported in the Australian Financial Review (AFR) this week, ANZ commodity strategist Soni Kumari is telling investors that silver is "set to outperform gold" going forward. This is due to several factors, including anticipated looser monetary policy around the world and a growing deficit in the silver market.
Kumari stated, "Silver remains an inexpensive alternative to gold" and predicts that the silver price will reach US$34 per ounce over the coming year. That compares to a more modest US$2,700 price-per-ounce target for gold.
No doubt, Australian precious metals investors will find that assessment interesting. But we'll have to wait and see what happens.
