Rising oil and gas prices rattled investors, raising concerns about the impact on the businesses they were invested in.

We are starting to see that impact, with Qantas Airways Ltd (ASX: QAN) doubling its jet fuel cost estimates for 2H FY26 today.

Fortescue Ltd (ASX: FMG) chair Dr Andrew Forrest has also revealed they paid up to double for emergency fuel supplies last month.

With all this in mind, it's interesting to look at how Aussie investors repositioned their ASX ETF portfolios as the conflict unfolded.

Aussies have $329 billion invested in ASX ETFs, and last month they ploughed an additional $5.6 billion into their favoured funds.

That makes March the third-highest month for net inflows ever. It seems the volatility caused by the war did not dampen their interest.

A new report from Betashares, which shows the top 10 ASX ETFs for inflows and outflows last month, reveals some interesting trends.

Let's take a look.

Top 10 ASX ETFs for inflows last month

Top 10 ETFs for outflows

How ASX ETFs investors repositioned last month

The VAS ETF is the most popular Australian shares ETF on the market, so it's no surprise to see it take out the top spot.

VGS is the most popular international shares ETF, so it's routine to see it close to the top as well.

The presence of IHVV in the top inflows list, and its unhedged counterpart IVV ETF in the top outflows, shows investors are mindful of currency changes over the past 12 months.

The Australian dollar has risen from just over 60 US cents 12 months ago to a three-year high of 70.8 US cents today.

As James Gruber, Equity Market Strategist at CommSec, points out:

When the Australian dollar strengthens, your international ETF returns shrink, and if the Australian dollar weakens, your returns improve.

Outflows from QAU ETF reflect profit-taking amid a 21% decline in the gold price over the first three weeks of March.

Sprott Managing Partner, Paul Wong, said investors need not be worried though.

Wong added:

Gold's March drop reflects a liquidity crunch, not a breakdown in its long-term role. 

As financial stress builds, gold is likely to reassert itself as a key monetary anchor.

Another interesting trend is the inflows into non-US international ETFs, reflecting the poorer performance of US markets this year.

In the year to date, the S&P 500 Index (SP: .INX) has lifted just 0.6% compared to a 3% bump for the ASX 200.

The post How ASX ETF investors repositioned as the Iran war shook markets appeared first on The Motley Fool Australia.

According to a new report from Betashares, after years of low inflation, the environment investors have become accustomed to is starting to shift.

Hans Lee, Senior Finance Writer at Betashares, said for most of the past two decades, inflation was low enough that many investors didn't need to think about it. But that backdrop may now be shifting.

Treasury modelling flagged this month that the Iran conflict could push inflation to 5% or above. Both the RBA and the Federal Reserve have revised their inflation forecasts higher this year, with the RBA now expecting inflation to remain above its 2-3% target until early 2027.

How is inflation measured?

One way we measure this metric is using the The Consumer Price Index (CPI). 

It measures household inflation and includes statistics about price change for categories of household expenditure.

The most recent data shows CPI annual inflation was 3.7% in the 12 months to February 2026. 

This is above the Reserve Bank of Australia's goal range of between 2-3%. 

How does it impact investors

Inflation can eat away at returns more than many investors realise. 

For example, if your portfolio gains 6% but inflation runs at 4%, your real return is only about 2%. Investors must beat inflation just to preserve wealth.

According to Betashares, this is also extremely relevant for investors approaching retirement. 

A higher assumed rate of inflation may also move the goalposts on your FIRE number retirement target. That nominal $1 million figure would now be $1 million plus the rate of inflation meaning the number you need to reach keeps rising, which means the return your portfolio needs to deliver rises with it.

Where to invest in a high inflation environment

According to the report from Betashares, for investors looking to add inflation resilience to an existing portfolio, there are particular assets that may help.

Firstly, there is historical evidence that gold has been able to preserve most of its purchasing power through inflationary periods when paper assets have struggled.

Gold focussed ASX ETFs include: 

• BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)
• Vaneck Gold Bullion ETF (ASX: NUGG)

Another asset class to consider according to Betashares is royalty companies. 

These are businesses that own royalty streams on commodities or other assets, collecting a percentage of revenue rather than bearing production costs. 

That structure may be less exposed to rising input costs, although performance will depend on commodity prices and other factors.

For exposure to royalty companies, investors may consider Betashares Global Royalties ETF (ASX: ROYL). 

Finally, listed infrastructure often have revenues that are linked (to varying degrees) to inflation through regulated pricing or contractual arrangements. 

However, the extent of this linkage and its impact on income may vary.

An ASX ETF that provides exposure to this sector is FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL). 

The post Where to invest if inflation keeps rising – Expert appeared first on The Motley Fool Australia.

Cameron Gleeson, Betashares, said geopolitical events like this can create sudden swings in markets. 

This has certainly been felt throughout March.

In a report released yesterday, he outlined two potential paths for markets: a prolonged conflict and disruption to global oil supply, or a de-escalation within a matter of weeks. 

He also highlighted several ASX ETFs that may help investors position their portfolios accordingly.

How does the current conflict impact ASX portfolios?

There are several reasons the current conflict in the Middle East is influencing markets.

The most immediate influence to markets is typically energy prices, which have had significant movement this past week on mixed messages from the Trump administration and Tehran's defiance. 

According to the report from Betashares, impact to global oil supply can quickly influence other areas of the economy like inflation expectations, central bank policy and the global growth outlook.

Here are two possible outcomes and how investors could adjust their portfolios.

Its important investors understand these scenarios are illustrative only and not predictions.

Potential path one: Prolonged conflict

Mr Gleeson said if tensions escalate and oil shipments through the Strait of Hormuz face sustained disruption, energy prices may remain elevated for some time. 

According to the report, even if Trump succeeds in dismantling Iran's nuclear program and triggering regime change, the outcome could still create a power vacuum in which factions within Iran continue to threaten energy shipments.

If you are looking for the single most important indicator of risk in this crisis, it's the price of oil. Oil's reaction has been volatile, but some investors have tried to use it as a "geopolitical hedge" for when other asset valuations come under pressure.

The ASX ETF that offers the most direct exposure to changes in the price of oil is the BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO). 

The Motley Fool's Sebastian Bowen provided a thorough breakdown of the fund and its positioning relative to the current conflict earlier this month. 

Other ASX ETFs that may be worthy of consideration if you expect a prolonged conflict and ongoing oil crisis include: 

• BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL) – Provides exposure to some of the world's largest oil and gas producers, with significant production outside the Gulf region.
• BetaShares Global Agriculture Companies ETF – Currency Hedged (ASX: FOOD)
• BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)

Potential path two: De-escalation

Mr Gleeson said alternatively, if tensions ease quickly and shipping through the Strait of Hormuz resumes uninterrupted, oil prices could retrace and the geopolitical risk premium embedded in markets may fade. 

In that environment, global equities and cyclical sectors could benefit from improving sentiment and a renewed focus on economic growth.

A rising tide lifts all boats and one might expect all equity markets to rally, but below we identify some of the higher beta opportunities for such a recovery.

Some ASX ETFs mentioned include: 

• Betashares Msci Emerging Markets Complex Etf (ASX: BEMG)
• Betashares Global Shares Ex Us Etf (ASX: EXUS)
• BetaShares Geared Australian Equity Fund (Hedge Fund) (ASX: GEAR)

He highlighted that historically, emerging markets have performed strongly when global risk appetite improves and trade flows normalise.

Additionally, Ex-US equities provide greater exposure to cyclical sectors like financials and industrials than the US equity market and, as such, greater exposure to a strong global growth environment.

The post Portfolio strategies for 2 potential Middle East scenarios – Expert appeared first on The Motley Fool Australia.

Many of the factors that have pushed gold higher over the past few years arguably remain in place today. Economic uncertainty remains a constant in the global economy, exemplified this week by the storm of tariff threats and trade sanctions being thrown around in response to US President Donald Trump's aspiration to acquire Greenland. Government debt across major economies of the world continues to climb. Central banks continue to snap up gold at record rates. And geopolitical tensions remain high across several global hotspots.

As such, many ASX investors may wish to add gold (or more gold) to their portfolios in 2026, despite the record-high prices. Of course, physical gold bullion in bar or coin form will continue to be the preference of many investors seeking to buy gold. However, many others might prefer the ease of investing in gold ETFs over holding physical metal.

There are many gold ETFs on the ASX that these investors can choose from. So, which is the best? Let's look at some options.

Which ASX gold ETF is the best to buy in 2026?

For starters, there's Perth Mint Gold (ASX: PMGOLD). This ETF is managed by the Perth Mint. Its units represent ownership of physical metal held in the Perth Mint vault, and are subject to a government guarantee from Western Australia. They can even be converted to gold bullion if investors wish. As with all of the ETFs we'll discuss today, this tie to gold means that PMGOLD units should rise and fall in value alongside the price of gold itself.

Perth Mint Gold charges a management fee of 0.15% per annum.

There's also the Global X Physical Gold ETF (ASX: GOLD) to consider. This gold ETF works similarly to Perth Mint Gold, with each unit representing entitlement to a physical store of precious metal. In this case, that bullion is held in a vault in London. The Global X Physical Gold ETF charges a fee of 0.4% per annum.

Another gold ETF in this vein is the VanEck Gold Bullion ETF (ASX: NUGG). NUGG units are tied to physical gold held in an Australian vault. Like PMGOLD, the units can be exchanged for bullion at investors' convenience. This ETF asks an annual management fee of 0.25%.

To hedge or not to hedge?

All of the funds we've discussed offer gold exposure to Australian investors in US dollar terms. The units are unhedged to Australian dollars, meaning that fluctuations in our exchange rate can influence the pricing of these ETFs, even if the underlying price of gold in US dollars doesn't change.

However, the BetaShares Gold Bullion Currency Hedged ETF (ASX: QAU) is different. It still holds bullion in a London vault, and its units are tied to the value of that bullion. But this ETF also uses currency hedging to mitigate any movements in the Australian dollar, effectively offering a pure exposure to gold in US dollar terms.

This doesn't come free, though, and QAU charges a management fee of 0.59% per annum for its services.

It's a similar story with the Global X Gold Bullion (Currency Hedged) ETF (ASX: GHLD). This ETF works almost identically to GOLD, but also adds a hedging mechanism. It asks 0.35% per annum in management fees.

Foolish Takeaway

As you can see, there are many gold ETFs on the ASX for precious metal enthusiasts to choose from. Which is the best choice comes down to individual preference. If you like the idea of an Australian holding, PMGOLD or NUGG might be your preferred option. PMGOLD also offers the lowest fees on this list, and has significantly more assets under management than NUGG.

If you wish to employ currency hedging, then QAU or GHLD are your only choices. Given the differences in fees there, I would personally be more inclined to give GHLD a look.

The post With gold up 71%, which is the best ASX gold ETF to buy? appeared first on The Motley Fool Australia.

That's a gain worth 48.15%, well above what any stock market, or most other assets for that matter, have returned.

Given this incredible runup, many ASX investors might be wondering how they can get in on the action. There's always the option of buying physical bullion if one wants to buy gold, of course. However, many investors don't want to worry about the hassle of buying and storing heavy gold bars or coins.

Luckily for those investors, exchange-traded funds (ETFs) provide a compelling alternative. Gold ETFs work by holding a store of the precious metal, usually in a bank vault somewhere, and offering investors a chance to indirectly invest in that gold stockpile by buying units of the ETF.

The price of these units should move in tandem with the price of gold, allowing investors to obtain a return if the gold price continues to rise. There is no need to own physical metal itself with this strategy, although this does come with the drawback of having to pay the ETF provider an annual fee.

Let's talk about a few ASX ETFs that might suit an investor wishing to buy gold today.

Buy gold with these ASX ETFs

The simplest funds that offer exposure to the gold price include the Global X Physical Gold Structured ETF (ASX: GOLD) and the Perth Mint Gold ETF (ASX: PMGOLD). Both of these ETFs work in the manner described above. The Global X fund holds its gold store in a London vault, while Perth Mint Gold's stores are held locally in Perth.

Critically, both funds offer investors who wish to buy gold unhedged exposure to the precious metal. This means that the units will reflect the price of gold in Australian dollar terms rather than US dollars.

This can be beneficial if the price of gold rises in US dollar terms whilst the value of our dollar falls. However, it can work against investors if our dollar gains strength relative to the greenback.

The Global X Gold ETF charges a management fee of 0.4% per annum, while Perth Mint Gold asks a far cheaper 0.15% per annum.

For investors who wish to take that currency factor out of the equation, there are also ETFs that offer hedged exposure available. These will give investors a 'purer' exposure to gold, meaning that movements in our dollar won't affect the value of the ETF, only the price movements of gold itself.

Investors have a few options to consider if this is the path they wish to take. Two examples are the BetaShares Gold Bullion Currency Hedged ETF (ASX: QAU) and the Global X Gold Bullion (Currency Hedged) ETF (ASX: GHLD).

Bear in mind that hedged ETFs can often be more expensive to own than their unhedged counterparts. To illustrate, GHLD units will set investors back 0.35% per annum, while QAU will cost 0.59% per annum.

The post Want to buy gold? Try these ASX ETFs appeared first on The Motley Fool Australia.

The precious metal rose 1.6% to US$3,744.

That coincided with a strong session for all major US indices, which also reached fresh record highs.

Gold is viewed as a safe-haven asset, with an extremely long track record of increasing in value in times of turbulence.

The gold price has rallied strongly this year on persistent geopolitical uncertainties, including the Russia-Ukraine war and the Middle East conflict.

Over the past couple of weeks, the gold price received a further boost after the US Federal Reserve cut interest rates by 25 basis points and signalled more rate cuts were on the horizon. 

The lowering of interest rates boosts the appeal of gold, a non-income-producing asset. In a low-interest-rate environment, the opportunity cost of holding it relative to interest-earning assets such as dividend shares decreases.

According to Bloomberg, investors have piled into US gold-backed exchange-traded funds (ETFs) this year, with total holdings in mid-September reaching their highest point since 2022.

All eyes on the next inflation report

This week, markets will reflect on the latest US Personal Consumption Expenditures (PCE) report, the Fed's preferred measure of underlying inflation.

Investors are expecting to see a further cooling of inflation, reinforcing the case for further interest rate cuts. 

This could spark the next rally for the gold price. 

Tonight, investors will also hear from Federal Reserve Chair Jerome Powell for fresh signals on the central bank's monetary policy path.

ASX gold stocks and ETFs continue to rally

A strong gold price has translated into a very favourable period for many ASX-listed gold stocks and exchange-traded funds (ETFs). 

Among the top-performing gold stocks have been Newmont Corporation CDI (ASX: NEM) and Evolution Mining Ltd (ASX: EVN). 

Newmont shares have risen 17% this month and 60% over the past 12 months. Evolution Mining shares have eclipsed this performance, rising 23% in a month and 135% over the past year. 

Holders of ASX-listed gold ETFs have also strongly benefited from the recent gold price rally.

Vaneck Gold Bullion ETF (ASX: NUGG) has risen 10% this month and 47% over the past year. 

Betashares Gold Bullion Currency Hedged ETF (ASX: QAU), which removes the impact of currency, is up 11% this month and 38% over the past year. 

Those who are optimistic that further rate cuts could drive additional support for the gold price might want to consider adding an ASX gold stock or ASX-listed gold-focused ETF to their portfolio.

The post Why Friday's US inflation report could send the gold price to another record appeared first on The Motley Fool Australia.

You might have exposure to some of the major blue-chip companies listed on the ASX. This could be a variety of the big banks, mining and materials stocks etc. 

You also know that a balanced portfolio includes stocks outside Australia. Based on this, you might have bought a fund that tracks the S&P 500 Index (SP: .INX). 

This gives you exposure to sectors less common on the ASX like technology and healthcare, as well as big global companies like Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL). 

At this point, your portfolio is looking solid. 

Now you may be looking to add a small but concentrated investment in one specific sector. 

This is called thematic investing. Here are some growing themes you may be interested in targeting. 

Commodities 

Commodities are simply raw materials.

They can be precious metals like gold and silver or foodstuffs like corn and wheat and even energy resources like crude oil and natural gas.

This year, physical commodities like gold have far outpaced the returns of the ASX 200. The price of physical gold has risen more than 40%. 

This can be a strong investment for diversification because commodity prices can often move differently from share prices.

Gold has a long history of preserving its value, so investors flock to it when other financial markets get rocky. 

If you are interested in adding commodities like gold to your portfolio, some ASX ETFs to consider include: 

• Global X Physical Gold (ASX: GOLD)
• BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)
• VanEck Gold Miners ETF (ASX: GDX)

Artificial Intelligence 

A growing theme that may interest investors is artificial intelligence.

According to Grand View Research, the global AI market is expected to grow at a compound annual growth rate (CAGR) of 38.1% from 2022 to 2030. 

AI stocks can be companies involved in chip making, software, or firms that utilise artificial intelligence in their applications.

Importantly, the ASX does not have as many AI focussed stocks as other markets. This can make AI ASX ETFs beneficial, as investors can gain exposure to innovative AI companies in the US, Asia and Europe. 

Some to consider for AI exposure include: 

• Global X AI Infrastructure ETF (ASX: AINF) 
• Global X Robo Global Robotics And Automation ETF (ASX: ROBO)
• Global X Artificial Intelligence ETF (ASX: GXAI)

ESG ASX ETFs

ESG stands for environmental, social, and governance. It is a growing theme amongst investors to target not only financial growth, but simultaneously have a positive global impact through their investment choices.

As the name suggests, this may involve targeting companies committed to contributing to climate targets, supporting human rights etc. It can also involve actively excluding companies that contribute to violence, war, alcohol/tobacco manufacturing or negatively impacting the environment. 

If this sounds like a strategy you would like to include in your investment portfolio, some ASX ETFs to consider include: 

• Betashares Australian Sustainability Leaders ETF (ASX: FAIR)
• Vanguard Ethically Conscious International Shares Index Etf (ASX: VESG)
• BetaShares Global Sustainability Leaders ETF (ASX: ETHI)
• Betashares Energy Transition Metals Etf (ASX: XMET)

The post Thematic ASX ETF investing ideas appeared first on The Motley Fool Australia.

For many investors, the surge is more than a headline. It reflects a growing desire for stability in an unstable world, and gold has once again stepped into its familiar role as a safe harbour.

What's fuelling the rise?

The rally is not being driven by one factor alone. Instead, it's the convergence of several powerful forces. Expectations of US interest rate cuts have weakened the dollar, making gold more attractive to overseas buyers. Central banks across Asia and emerging markets are steadily adding to their reserves, diversifying away from the greenback. And with sovereign debt loads swelling worldwide, investors are questioning how long the current economic order can hold together.

At the same time, a less obvious but increasingly important driver has emerged: gold exchange-traded funds (ETFs). Inflows into these funds have surged to their highest level in years. That creates a self-reinforcing cycle: as investors buy ETF units, providers must purchase physical bullion to back them. This extra demand pushes prices higher, which attracts more inflows, and the loop continues. It's a feedback mechanism that helps explain the speed and strength of gold's move upward.

Why investors remain bullish

The momentum in gold is supported by both sentiment and structure. On the sentiment side, uncertainty about trade, politics, and economic growth keeps drawing capital into safe-haven assets. Structurally, central banks are expected to remain steady buyers, and ETFs have broadened access for retail and institutional investors alike.

Some analysts now see scope for gold to climb towards US$4,000 an ounce or beyond over the next year. While nothing is guaranteed, the current alignment of lower yields, a softer dollar, and robust demand provides a clear runway for further gains.

A place in modern portfolios

For investors, the appeal of gold is not about chasing the latest rally but about balance. Unlike shares or bonds, gold does not rely on cash flows or creditworthiness. It stands apart, offering diversification when other assets are struggling.

ETFs make this role more accessible than ever. Products like Global X Physical Gold (ASX: GOLD) or BetaShares Gold Bullion Currency Hedged ETF (ASX: QAU) give simple exposure to bullion without the challenges of storage or insurance. They also form part of the very mechanism that has helped propel the price higher in recent months.

Foolish Takeaway

Gold's surge to record highs is a story of more than fear. It's about a centuries-old asset finding new life in a modern investment world, with ETFs amplifying demand and central banks reinforcing the trend.

For those seeking resilience in their portfolios, gold may continue to shine — not as a replacement for growth investments, but as a counterbalance when the world feels uncertain.

The post Why gold's record-breaking rally could keep climbing higher appeared first on The Motley Fool Australia.

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. 

The post Gold is on fire: 3 ASX ETFs to ride the rally appeared first on The Motley Fool Australia.

Gold traded at around US$3,380 an ounce, after declining 0.6% the previous day.

What did the Fed say?

Last night, the US Fed opted to keep interest rates steady, holding them at their target of 4.25% to 4.5%. 

Federal Reserve policymakers released their first economic forecasts since President Trump unveiled his sweeping tariffs. 

Policymakers continue to see higher inflation due to tariffs. 

As reported by CNBC, Chairman Powell said tariffs are an unavoidable cost increase to businesses and consumers.

Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs because someone has to pay for the tariffs.

It will be someone in that chain that I mentioned, between the manufacturer, the exporter, the importer, the retailer, ultimately somebody putting it into a good of some kind or just the consumer buying it.

The Central Bank is now forecasting two rate cuts this year. However, Chairman Powell suggested the Central Bank was "well positioned to wait" before making any policy changes.

Will the gold price continue to rise?

Gold has been climbing over the past couple of weeks, as tensions in the Middle East continue to escalate. 

Yesterday, US President Donald Trump said Iran had waived its chance to make a deal regarding its nuclear capabilities. It was reported by the Australian Financial Review that the US security team had held a meeting in the situation room. However, the extent of the US' potential involvement in the war remains unclear. Iran has vowed to retaliate if the US joins Israel's attack on the country.

According to Bloomberg, "the heightened geopolitical tensions and economic uncertainty have combined with robust buying from central banks and inflows to exchange-traded funds, pushing the precious metal almost 30% higher this year".

Gold-focused ASX exchange-traded funds (ETFs) have done incredibly well over the past 12 months. The Betashares Gold Bullion Currency Hedged ETF (ASX: QAU) is up 43% over the past year. Meanwhile, the Vaneck Gold Bullion ETF (ASX: NUGG) is up 50% over the same time frame.

A significant and sustained escalation in consumer prices may stop the Federal Reserve from cutting rates. This would likely be a negative for gold. Since gold doesn't pay interest, investors would see better value in fixed-income securities such as bonds.

However, a prolonged war between Israel and Iran would likely boost support for the yellow metal.

The post Gold price edges higher on Fed's inflation warning appeared first on The Motley Fool Australia.

Gold lifted after US President Donald Trump called for the immediate evacuation of Tehran.

The US President called for an evacuation of the Iranian capital on social media after he urged Iran's leadership to sign a deal to limit its nuclear program.

According to Bloomberg, gold rose 0.4% to top US$3,400 an ounce last night. This followed a 1.4% slide on Monday, which was the biggest daily decline in a month.

Gold shot up 4% last week after Israel had launched a strike on Iran's nuclear facilities. This has sparked fears of a wider regional conflict. 

There is potential for Iran to close the Strait of Hormuz, a key shipping passage that transports around 20% of the world's oil. Experts have warned that any disruptions could cause financial turmoil. 

Historically, gold has been seen as a safe-haven investment and hedge against geopolitical conflict. Amid sustained geopolitical conflict in the Middle East and Ukraine, gold has risen more than 45% in the past year. 

The precious metal now sits around US$100 short of its all-time high set back in April. Further escalation could be the catalyst for a new all-time high.

How can ASX investors buy gold?

The easiest way for ASX investors to buy gold is through ASX exchange-traded funds (ETFs). These funds provide exposure to the performance of gold without needing to buy and store physical gold bars. Gold ETFs are purchased just like any other ASX share and charge a relatively small management fee. 

The Betashares Gold Bullion Currency Hedged ETF (ASX: QAU) is backed by physical gold bullion bars held in a vault of JP Morgan Chase in London, hedged for currency movements. The management expense is relatively low (given the nature of the ETF), at 0.59% per annum. 

As expected, the QAU ETF has roughly performed in line with the gold price over the past year, rising 44%, compared to 45% for the gold price. 

Another option is the Vaneck Gold Bullion ETF (ASX: NUGG), which gives investors an investment in Australian-sourced gold. Units in NUGG can also be converted into physical gold bullion, if the investor chooses. 

Over the past year, the NUGG ETF has outperformed the QAU ETF, rising 47% compared to 44%. The NUGG ETF also charges a lower management fee of 0.25%, which may be especially appealing to investors. 

The post Could the gold price reach a new all-time high this week? appeared first on The Motley Fool Australia.

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.

The post 2 premium gold and silver ASX ETFs to buy right now appeared first on The Motley Fool Australia.

They offer a quick and easy way to achieve instant diversification by purchasing a basket of ASX shares or international shares in one go for a single brokerage fee. 

As we reported recently, ASX ETFs invested in international shares are particularly popular with Australian investors this year due to the outperformance of the S&P 500 Index (SP: .INX) vs. the ASX 200.

According to Vanguard and ASX research, international shares ETFs have attracted more than 56% of total cash inflows from investors this year.

So, with the United States election upon us, Betashares Senior Investment Strategist Cameron Gleeson has shared his ideas as to which ASX ETFs may benefit if Donald Trump takes the presidency.

In a new article, Gleeson explores how Trump's policies could impact the global economy and markets, bearing in mind that the impact will also depend on whether the Republicans gain control of Congress.

Let's take a look.

Trump's key policies

Gleeson provides the following overview of the key Trump policies that he thinks matter most.

Taxes and spending

• Cut corporate tax rate from 21% to 15%
• Increase taxes on buybacks and companies' foreign income
• Extend 2017 personal tax cuts for all
• Eliminate US tax on Americans living abroad
• Tax deductions on auto loans
• Repeal green tax incentives in the Inflation Reduction Act (IRA)
• End US aid to Ukraine

Trade and Tariffs

• Impose universal (10%-20%) tariff on all imports
• 60% tariff for all Chinese imports and revoke China's 'Most Favored Nation' status
• Further tariffs on certain auto imports

Immigration, Energy, and the Federal Reserve

• Deport unauthorised immigrants, strengthen border controls and reduce immigration
• Repeal the IRA green subsidies
• Boost oil and gas development, LNG exports and power plant construction
• Potentially allow input from the President on Federal Reserve policy

ASX ETFs that may benefit from a Trump Presidency: expert

BetaShares S&P 500 Equal Weight ETF (ASX: QUS)

Gleeson says the ASX ETF QUS would play on Trump's 'America First' mindset:

Domestically focused US companies have more to gain and less to lose from a possible trade war and protectionism.

This could favour the S&P 500 Equal Weight Index (which QUS seeks to track, before fees and expenses) relative to the market cap weighted S&P 500 Index that is currently dominated by large global tech companies.

Betashares Global Energy Cos-Currency Hedged ETF (ASX: FUEL)

Gleeson says the ASX ETF FUEL may benefit from increased energy production in the US:

Under Trump's plan to ramp up energy production, oil and gas companies could grow revenue even if oil prices go lower, as well as enjoying lower exploration and production costs and lower taxes.

BetaShares Gold Bullion-Currency Hedged ETF (ASX: QAU)

Gleeson says the ASX ETF QAU is an option for investors seeking exposure to the gold price when currencies are volatile:

Conventional wisdom is that Trump's policies will lead to a higher USD, however, he has explicitly stated he will bring the USD down. It is possible that greater currency volatility may result.

Foolish takeaway

Gleeson says investors should be mindful that any potential upside to stocks or ASX ETFs resulting from a Trump victory may be limited to a short post-election bump.

"In the longer term, markets are more beholden to macro-economic fundamentals than politics," he says.

Here at The Motley Fool, our analysts do not advocate trying to time the market. Our team recommends taking a long-term view and using fundamental analysis to choose which ASX ETFs or shares to invest in.

The post 3 ASX ETFs that could boom under a Trump presidency appeared first on The Motley Fool Australia.

There are a few ASX gold ETFs on our market, and most have delivered stunning gains over the past year or so, reflecting the optimism in the precious metal markets.

Take the Global X Physical Gold ETF (ASX: GOLD), a popular ASX gold ETF. At the start of 2024, GOLD units were going for $27.96. Today, those same units are trading at $35.52 each, a rise of 27%.

The Perth Mint Gold ETF (ASX: PMGOLD) has fared similarly. PMGOLD units were asking $30.20 in early January but are trading for $38.28 each today, a rise of 27%.

The BetaShares Gold Bullion ETF (ASX: QAU), which, unlike the previous two funds, is hedged against currency movements, has been slightly less successful. QAU units are up 25% this year, going from $17.37 each to today's $21.72.

Another ASX gold ETF worth mentioning is the VanEck Gold Miners ETF (ASX: GDX). Unlike the other ETFs here, GDX doesn't track the bullion price of gold. Instead, it invests in a basket of global gold mining stocks.

Owners of this investment have enjoyed a 27% gain over 2024 so far.

So we've established that gold, and by extension, ASX gold investments, have had a great year to date. It doesn't hurt when the price of gold itself has risen from approximately US$2,066 per ounce to this week's new record high of US$2,635.

But many ASX investors don't own gold right now. As such, they are probably wondering whether they should. After all, gains like these are difficult to watch from outside the tent.

Should investors buy ASX gold ETFs at record prices?

Tom Stevenson, investment director at fund manager Fidelity, put forward some ideas on this question in a recent publication.

Steveson wastes no time in pointing out that gold has had an extraordinary few years. He noted the following:

one of the best performing assets over the past two years has been neither an equity index nor fixed income… Even without the benefit of an income stream (the main driver of total returns from most investments), gold has given investors a 54 per cent profit since September 2022.

The director argues that gold's rise can be put down to a few factors. These include supply and demand – there have been more buyers (mainly central banks) than sellers. That's in addition to what's happened globally with inflation and interest rates, investor trust in gold assets, and gold old investor momentum.

Despite describing himself as a current gold investor, Stevenson notes that he is still "a sceptical bull" of gold (and gold ETFs, by extension) at current prices. He even goes as far as stating that "if someone were to ask me today whether they should too, I would struggle to answer them".

Why the hesitation? Stevenson points to gold's track record:

Gold is a volatile asset and can require extreme patience at times. If you had bought an ounce of the precious metal in September 2011 at the height of Europe's sovereign debt crisis, you would have paid around US$1800.

You would have had to wait until mid-2020, when there was still no end in sight to the Covid pandemic, before that investment was, briefly, back above water. Two years ago, you would still have been in negative territory. Gold does nothing for years, and then suddenly it takes off.

However, he also states that "If you are prepared to hold for the long term, gold can be a great store of value".

There is something here for everyone, it seems. At the end of the day, it will probably come down to each investor's personal beliefs and proclivity for gold's nature as an investment.

The post Should you be investing in ASX gold ETFs at all-time highs? appeared first on The Motley Fool Australia.

Investors who want exposure to gold love the ETF structure as it negates many of the negative aspects of traditional gold investing. Gold bullion, whether it be in coin or bar form, requires its owners to take delivery, transport, store and in many cases insure, one of the heaviest metals on the planet. This can be a costly exercise. And since gold pays no yield, these costs can significantly weigh (no pun intended) on the benefits of owning gold in its physical form.

In contrast, gold ETFs allow investors to have a financial stake in the yellow metal without ever having to see, or hold, their investment. This comes at a cost of course, with all gold ETFs charging management fees for their services. But even so, many investors appreciate the simplicity of taking this path towards gold ownership.

So today, let's discuss three ASX gold ETFs that are available on the Australian stock market.

3 ASX gold funds that anyone can invest in

Global X Physical Gold ETF (ASX: GOLD)

This ETF, formerly known as the ETFS Physical Gold ETF, is the largest of its type on the ASX, with almost $3 billion in funds under management (as of 28 March).

When investors buy units of this ETF, those units are allocated to physical gold bullion holdings. These are stored in a bank vault in London on behalf of the fund. Investors can even exchange their units for the physical metal if they wish (for a fee).

Speaking of fees, this ETF charges a management fee of 0.4% per annum. That's $4 every year for every $1,000 invested.

Perth Mint Gold (ASX: PMGOLD)

This offering is a rather unique one, as it is provided by the Perth Mint. The Perth Mint is, in turn, fully owned by the State of Western Australia, which provides a government guarantee over its gold and associated investments and products.

This ETF works similarly to the one we just discussed. Every investment is allocated a physical gold backing with Perth Mint Bullion, with the units interchangeable for the precious metal.

PMGOLD has $828 million in assets under management and charges a management fee of 0.15% per annum.

BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)

Our final gold ETF is one offered by provider BetaShares. This ETF works similarly to the other two on this list – with one major exception. QAU also utilises a physical store of gold bullion to back its fund. But in addition, it uses currency hedging instruments to shield ASX investors from movements in our local currency.

Gold is always priced in US dollars on the international market. That means that the cost of gold for Australian investors always has to be converted from its cost in US dollars first before it is quoted. This means that movements in our currency's value against the greenback have just as much influence on the price of gold as the changes in the value of the yellow metal itself.

As such, currency fluctuations affect the value of both PMGOLD and GOLD units. But the BetaShares Gold Bullion ETF takes this factor out of the equation. This means that the value of its units theoretically won't change with normal currency fluctuations, only on the price of gold.

Some investors might appreciate this added feature of this ASX gold ETF.

QAU charges a management fee of 0.59% per annum and currently has $564.7 million in assets under management.

The post 3 highly rated ASX gold ETFs to consider buying now appeared first on The Motley Fool Australia.

In Australian dollar terms, these gains have been even more pronounced, thanks to simultaneous weakness in our dollar compared to the US dollar. Gold started the year at $3,038 an ounce in our local currency, but the new highs of this month were worth $3,764 in Aussie dollars. That's a rise for Australian gold investors of 23.9%.

This doesn't just benefit those gold bugs that own physical gold bullion bars or coins. There are many ways to buy gold as an investment, including on the ASX. And most don't involve taking physical ownership of gold bars.

Gold exchange-traded funds (ETFs) are the most obvious example of this. These ETFs have been surging in popularity in recent years. Some prominent products include the Perth Mint Gold ETF (ASX: PMGOLD), the Global X Physical Gold ETF (ASX: GOLD), the VanEck Gold Bullion ETF (ASX: NUGG) and the BetaShares Gold Bullion – Currency Hedged ETF (ASX: QAU).

ASX investors can also utilise gold mining stocks or gold mining ETFs for a higher-risk, higher-reward exposure to the price of gold.

Some of the ASX's most popular gold stocks include Newmont Corporation (ASX: NEM), Northern Star Resources Ltd (ASX: NST) and Gold Road Resources Ltd (ASX: GOR).

Meanwhile, the VanEck Gold Miners ETF (ASX: GDX) provides a way for investors to access a portfolio of gold miners from around the world.

Is it too late to buy gold in 2024?

Given gold's astronomical rise in 2024, many investors who have previously not owned any previous metal investments might be wondering if it's too late to hop on this bandwagon.

Unfortunately for those investors, I would argue that it is.

Sure, gold has come off the boil this week, as global geopolitical tensions have somewhat subsided. But even though the yellow metal has dropped from over US$2,400 an ounce to around US$2,360 today, it is still at a very high level historically. A month ago, today's price would have been a new record high, after all.

As I argued earlier this month, gold is an inherently cyclical commodity. It has tended to rise in value over long periods of time. But each new record high in the past has been followed by a pricing slump. In many cases, this slump has lasted for years. As I pointed out, 2011 saw gold at a new record high at the time, but by 2015, the precious metal had nearly halved in value from that high watermark.

Those who bought at the 2011 peak would have spent the best part of the subsequent decade underwater.

Foolish takeaway

As such, I think buying gold today close to its latest all-time high would be a mistake, whether that be bullion or a gold miner or ETF.

Sure, the metal might climb further from here. No one knows for sure. But I think it's more likely that it will follow its usual trajectory and stabilise or even drop in value over the coming months and years.

I think investors should take to mind Warren Buffett's advice on being fearful when others are greedy in this situation. As is the case with other investments like ASX shares, the best time to buy gold tends to be when no one else wants to. Not when everyone is fighting over themselves to buy at a historically high price.

The post Is it too late to buy gold as an investment in 2024? appeared first on The Motley Fool Australia.

As my Fool colleague discussed this week, gold rose from US$1,823 an ounce in early October to a new all-time high of US$2,365 an ounce just this Thursday. Humans have been putting a price on gold for almost all of recorded history, so a new record high is no small deal.

Interest in ASX gold shares has predicably followed this surge in value, as has interest in gold ETFs.

There are a few ETFs on the ASX that allow investors to gain direct exposure to the gold price without having to physically own the metal. Most do so by backing the ETF with physical gold bullion stored in a bank vault. When more funds enter the ETF, they are used to bulk up that ETF's bullion reserve.

Given the surging price of gold itself, it's no surprise to see ASX gold ETFs following suit. To illustrate, the VanEck Gold Bullion ETF (ASX: NUGG) has gained an impressive 18.7% over 2024 to date. That beats out most other investments, including the S&P/ASX 200 Index (ASX: XJO) and the S&P 500 Index.

Other ASX gold ETFs, such as the Perth Mint Gold ETF (ASX: PMGOLD), the Global X Physical Gold ETF (ASX: GOLD), and the BetaShares Gold Bullion ETF (ASX: QAU), have performed similarly. Every ETF on this list, with the exception of QAU, has recently clocked a new record high.

Is it too late to buy ASX gold ETFs at all-time highs?

But with gains like that already under the belt, is it too late to invest in ASX gold ETFs today?

I tend to think that it is. Gold, like most commodities, typically rises and falls on a cyclical basis rather than climbing slowly and steadily.

Gold's trajectory over the 21st century thus far has been upward. However, this hasn't come without peaks and troughs in between. A subsequent slump has followed every past all-time high for gold.

Long-term gold investors probably remember the then-all-time record of just under US$1,900 that gold hit in 2011. It took almost another decade before that high was again surpassed in 2020. In the meantime, the price of gold almost halved from that high at one point when it hit US$1,060 an ounce in 2015.

As such, I think the best time to buy gold, and by extension gold ETFs, is when it is in one of these slumps. Not when it is minting fresh new all-time highs. Of course, this time could be different, and gold might hit US$3,000 an ounce by the end of the year, for all I know.

But I like to take investing cues from history, and in this case, I think the lesson is clear.

The post Is it a bad idea to buy ASX gold ETFs at all-time highs? appeared first on The Motley Fool Australia.

Investors have been sending ASX gold stocks soaring amid a fast-rising gold price.

It was only back on 3 October that the yellow metal was trading for US$1,823 per ounce.

By 28 February, that same ounce was worth US$2,030.

And over the past five weeks, gold has continued to charge higher, hitting new record highs of more than US$2,355 per ounce earlier today.

As for the performance of the Aussie gold miners?

Since 28 February the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has soared an eye-popping 26%. For some context, that compares to a 3% gain posted by the ASX 200 over this same time.

The Northern Star Resources Ltd (ASX: NST) share price has underperformed the gold index, though it's still up a very healthy 19% since 28 February.

The Newmont Corp (ASX: NEM) share price, on the other hand, has outperformed, up 33% over this time. Evolution Mining Ltd (ASX: EVN) shares have also outpaced the gold benchmark, gaining 36% since 28 February.

With these fat gains already in the bag, is the ASX gold train ready to run out of puff?

Or can it keep charging ahead?

What now for the speeding ASX gold train?

While the future is inherently uncertain, I believe that the gold price and most ASX gold stocks could still offer some sizeable gains in 2024.

That's because the demand outlook for gold continues to look very strong.

The yellow metal, which pays no yield itself, tends to perform better in low or falling interest rate environments. While we're not sure when the US Federal Reserve, the RBA and other central banks will begin cutting rates, some easing certainly looks to be on the cards for 2024.

Gold also has been benefiting from its safe-haven status, both in terms of an uncertain global economic outlook and amid rising geopolitical tensions from the Middle East to Eastern Europe.

The gold price should also find support with both consumer demand (particularly in China) and central bank demand at near-record levels and forecast to remain strong.

So, I think the gold train certainly has some steam left in it.

Investors looking to get exposure to further potential rises in the gold price without buying and storing physical bullion themselves could consider buying an exchange-traded fund (ETF) like Perth Mint Gold (ASX: PMGOLD) or Betashares Gold Bullion ETF (ASX: QAU).

Or, for potentially leveraged returns, investors can consider buying shares in the big ASX gold producers like Newmont, Northern Star and Evolution Mining. These stocks will often rise (or fall) significantly more than any underlying moves in the gold price.

If you're not sure how or where to invest your hard-earned money, please reach out for some expert advice.

The post Is it too late to get on board the ASX gold train? appeared first on The Motley Fool Australia.

As I pen this, three ASX gold ETFs are cracking into new all-time highs.

This comes as the yellow metal itself again launches into record territory.

There are some risks involved with any investment. However, investors opting to buy an ETF won't need to buy and safely store physical bullion themselves.

Three ASX gold ETFs shining bright

The three gold ETFs in question all offer ASX investors exposure to the performance of gold by buying shares on the stock market.

Perth Mint Gold (ASX: PMGOLD) is up 0.9% today, trading for an all-time high of $35.00 a share.

According to Perth Mint's website, "Gold offers investors protection against market volatility, inflation and geopolitical uncertainty."

Annual management fees run at 0.15%. And PMGOLD has returned an impressive annualised 10.9% gain over the past five years, handily outpacing inflation.

The second ETF smashing all-time highs today is ETFS Metal Securities Australia Limited (ASX: GOLD).

The ETF is also up 0.9% today, hitting a record $32.39 a share.

Management fees are 0.4%, and it's backed by physical gold. The company notes that, "Each physical bar is segregated, individually identified and allocated."

GOLD has returned an annualised 12.7% over five years.

Also riding the soaring gold price to new highs is Betashares Gold Bullion ETF (ASX: QAU). Shares are up 1.3% at the time of writing at $19.09, having earlier peaked at $19.21.

Also backed by physical gold, the ASX ETF is hedged for currency movements in the AUD/USD exchange rate.

Management fees are 0.59%. And the ETF has returned an annualised 6.4% over five years.

What's happening with the gold price?

The ASX gold ETFs and ASX gold miners are surging on the back of booming demand for gold.

The yellow metal is currently trading for US$2,283 per troy ounce, having touched US$2,287 per ounce in earlier trade today.

Either level tops Monday's previous record high gold price of US$2,266 per ounce. And it sees bullion up more than 25% since the recent lows of US$1,820 per ounce on 5 October.

Gold has been supported on numerous fronts.

First, there's the looming prospect of interest rate cuts from the United States Federal Reserve, the RBA and other leading global central banks. Gold, which pays no yield itself, generally performs better in low or falling interest rate environments.

Gold, and ASX gold ETFs, are also benefiting from ongoing strong central bank demand, which remains near record levels in 2024.

And bullion's haven status has come to the fore amid ongoing geopolitical tensions in the Middle East and Eastern Europe.

The combined factors could see a significant further upside in the gold price.

Last month, JPMorgan Chase & Co forecast that bullion could trade for US$2,500 per ounce.

The post 3 ASX gold ETFs smashing all-time record highs today appeared first on The Motley Fool Australia.

We've seen plenty of market pain over the last year and a half as the market digested the impact of strong inflation and higher interest rates. These have been wielded in a bid to dampen economic demand in Australia and other countries.

Yet, gold has a somewhat unique position in the ASX mining share sector. It has been used by societies for thousands of years as a store of wealth.

There are a few different ways to invest in gold on the ASX, including ASX mining shares such as Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN). There are also gold ETFs including Global X Physical Gold ETF (ASX: GOLD) and BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU).

Certainly, there are a couple of great reasons to like gold.

Inflation protection

Over the ultra-long term, it's thought that the gold price generally keeps up with inflation, so it could be a good inflation hedge, as Reuters research shows.

Its performance as an inflation hedge over the last couple of years during this period of elevated inflation has been patchy, but overall it has held up well.

In fact, according to exchange-traded fund (ETF) provider Global X, the gold price may rise because inflation figures have "eased significantly" in the US. The Federal Reserve now has "more flexibility with possible rate pauses in the near future, giving non-yielding assets room to breathe and rise in value".

Volatility hedge

For some reason, investors have decided that when the share market goes down, the gold price (usually) goes up.

Indeed, it sounds wise to have a position in one's portfolio that can rise as many other parts of the portfolio go down.

That sort of investment could give an investor peace of mind during bear markets.

It could also enable people to employ a strategy of selling their ASX gold shares when they have gone up (or not gone down as much as the market) during a crash, and buying other ASX shares when they have dropped.

But there's also one big reason not to buy a lot (or any) gold assets.

Little compounding potential

Gold has managed to display some positives, as I've already talked about.

But growth at the rate of inflation is not exactly shooting the lights out. The share market has delivered an average return per annum of around 10% per annum, much better than inflation.

However, gold doesn't do anything. It doesn't generate interest, rent, or profit and there's no re-investment potential. Gold just sits there being shiny.

Owning gold can be a decent short-term hedge against volatility, but there's a danger of trying to time the market. And it's not as though the market is crashing all the time.

There's an argument to say that gold miners could offer the potential returns of a growing miner — if we invest at the right price — though that comes with mining risks as well.

Overall, I'd say gold could play a small part in a portfolio as a volatility hedge and then switch that capital to appealing sold-off ASX shares. But, I think it makes less sense to own gold consistently for the ultra-long term or to make it a large part of the portfolio.

The post 2 reasons to buy ASX gold shares right now (and 1 reason to sell) appeared first on The Motley Fool Australia.