Kicking off the New Year with a $10,000 investment in GOLD would already have delivered some outsized gains today.
Now, I'm using capital 'GOLD' here, not in deference to the historic and enduring value of the yellow metal, but rather because I'm referring to the ETFS Metal Securities Australia Limited (ASX: GOLD).
You can buy and sell shares in the ASX exchange-traded fund (ETF) just like you would with any other stocks.
Now, this ETF is intended to track the price movements of physical gold in Aussie dollars. That's an important distinction, by the way, as foreign currency movements can potentially boost or erode the returns you'd receive in US dollar terms.
We'll get to the year-to-date returns on a $10,000 New Year's Day investment in a tick.
But first…
Why not just buy physical bullion?
There's no denying the appeal of owning, and holding, the shiny metal in your hands.
But if you're buying gold for a long-term investment, securely storing the metal isn't necessarily easy. Or cheap.
Short of digging a deep hole 15 paces due north from the old oak tree in your neighbourhood park, you either need to invest in a high-quality home safe or pay a bank to keep your treasure in a vault. Neither option is cheap. And even some of the better home safes can be broken into…or carted off.
Which brings us back to ETFS Metal Securities Australia.
According to the company's website, the ASX ETF, "provides investors with a low-cost and secure way to access physical gold through the stock market. It offers exposure to the gold spot price and avoids the need for investors to store their own physical gold".
And the 0.40% annual management fee is likely significantly less than a bank will charge to store your bullion.
Launched in March 2003, the ETF is reported to be the largest and most liquid gold-backed exchange-traded product in Australia. The fund holds physical bullion bars in a London vault managed by JPMorgan Chase.
So, just how much has the ETF gained in 2025?
How much is that $10,000 investment in the ASX GOLD ETF worth now?
As you're likely aware if you're reading this article, the gold price has been racing higher at a historic pace we haven't seen since 1986.
The yellow metal continues to be bought up by central banks at near record levels, even as retail and institutional investor demand for the haven asset has picked up amid rising geopolitical uncertainty. Bullion – which pays no yield itself and tends to perform better in low or falling rate environments – also has gained amid interest rate cuts from major global central banks.
These combined factors saw the yellow metal notch another new record high on Monday of US$3,255.90 per ounce (AU$5,215/oz). This came amid increased concerns over a full-blown trade war between the US and China. That sees bullion up around 22% since New Year's Day.
On 3 January, the first chance to buy GOLD in 2025, shares in the ASX ETF were trading for $38.99 apiece, according to ASX price data.
Meaning you could have snapped up 256 shares for $10,000, with enough change left over for a movie ticket.
At market close yesterday, shares in the ETF were changing hands for $47.18 apiece.
So, the 256 shares you purchased for $10,000 for the New Year are already worth a cool $12,078.08.
