The gold price has been breaking records, recently climbing above US$3,500 an ounce. For context, just three years ago, gold was trading closer to US$1,700 an ounce — meaning investors have seen the price more than double over that period.
This surge has been driven by a cocktail of factors: ongoing geopolitical tensions, persistent inflation, expectations of central bank easing, and robust demand from global institutions. Central banks themselves have been large buyers, further reinforcing the view that gold remains a reliable hedge in uncertain times.
Why investors still flock to gold
Gold has been trusted for thousands of years as both a currency and a store of value. Unlike paper assets, it doesn't corrode, inflate away, or depend on the fortunes of a single company or government.
That said, experts caution it's not always the smoothest investment. Research from earlier in 2025 showed gold returned an average of 6.7% per annum between 1990 and 2025, below the 8.1% average return from global equities. While it can be volatile, many investors see gold as an important portfolio diversifier, something to hold when shares and bonds are under pressure.
The ETF advantage
Owning gold bars or coins may sound appealing, but it's not the most practical way for most Australians to invest. That's where exchange-traded funds (ETFs) come in. They provide exposure to the gold price, backed by physical holdings, without the hassle of storage and insurance.
Here are 3 ASX ETFs worth knowing about:
1. Global X Physical Gold (ASX: GOLD)
The GOLD ETF offers a straightforward way to invest in physical bullion, having been listed on the ASX for more than 20 years. Its aim is simple: deliver investors a return that closely tracks the Australian dollar gold price, minus a small management fee. For investors who want direct exposure to the metal itself without storage headaches, GOLD ETF remains one of the more established choices.
2. BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)
While GOLD ETF tracks the local dollar gold price, QAU ETF adds a twist. It hedges against Australian dollar movements, ensuring investors get a cleaner exposure to the underlying gold price in US dollars. That can be especially useful when the local currency swings, which can either amplify or dilute returns. For those who want a "pure play" on global gold moves, QAU ETF may be a stronger fit.
3. VanEck Gold Miners ETF (ASX: GDX)
For something different, the GDX ETF doesn't hold bullion — it invests in a diversified basket of global gold mining companies, including several from the ASX 200. As the largest gold miners ETF in the world, GDX ETF gives investors exposure to some of the industry's biggest names. Over the 12 months to 3 September 2025, it returned over 80%. This leverage to the gold price can work both ways: miners often rally harder when gold rises, but can fall faster when it retreats.
Foolish takeaway
Gold's rally to record highs has caught plenty of attention, and for good reason. It's a centuries-old safe haven that continues to shine when uncertainty builds.
For Australian investors, ETFs offer easy ways to tap into the metal's momentum.
