Precious metal investors had a blinder of a year in 2024, as did the ASX exchange-traded funds (ETFs) that these investors often use to buy these commodities.
The most popular metal for investors – gold – rose from US$2,066 an ounce at the start of the year to US$2,612 an ounce by the end, a gain worth 26.4%. That was after hitting a new record high of just over US$2,788 an ounce in October to boot.
Silver fared a little worse, but was still a very lucrative investment last year. Silver began 2024 at US$23.96 an ounce, but finished the year at US$29.10. That's a rise worth 21.45%.
It's hard to put a finger on exactly why gold and silver had such an outstanding year last year. But economic concerns, as well as heightened geopolitical tensions on the world stage, probably played a major role.
Even though gold and silver are entering 2025 at these highs, many ASX investors might still want to keep investing in these precious metals. ASX ETFs provide an easy and relatively inexpensive path to doing so. But which gold and silver ETFs should investors go for?
That's what we'll be covering today.
Buying gold and silver using ASX ETFs
We'll start with silver. Unlike gold, ASX investors only have one local option to consider if they wish to buy a pure silver ETF. That would be the Global X Physical Silver ETF (ASX: ETPMAG).
This ASX ETF is backed by physical silver bullion that is held in a London bank vault by Global X on behalf of ETPMAG investors. In effect, buying units of this ETF represents buying a share of this bullion hoard. As such, if you wish to invest in silver, but don't want to buy and store physical bars and coins yourself, this ASX ETF is a good alternative.
It doesn't come free through. The Global X Physical Silver ETF charges a management fee of 0.49% per annum.
Things aren't so straightforward when it comes to gold, though. The ASX is home to many gold ETFs. Some popular examples include the currency-hedged BetaShares Gold Bullion ETF (ASX: QAU) and the Global X Physical Gold ETF (ASX: GOLD).
However, the best options are arguably Perth Mint Gold (ASX: PMGOLD) and the Global X Gold Bullion ETF (ASX: GXLD).
Similarly to ETPMAG, both of these funds represent indirect ownership of physical gold bullion stored in a vault. As such, investors can expect their investments in these ASX ETFs to rise and fall on the back of the movements of the gold price (in Australian dollars) itself.
Both of these funds charge a management fee of 0.15% per annum, making it hard to argue the case for one over the other. But it is the Perth Mint's 'government guarantee' that gives it the edge, in my opinion.
However, either one would be an effective and relatively inexpensive way of investing in gold without taking charge of coins and bars yourself.
