Article updated 28/09/2020
When it comes to investing in gold in 2020 there are two options one investing in gold backed companies on the asx and the second is investing in buying physical gold. The first option has more sub options to invest in gold like ETF’s investing, Commodity warrant investing and more.
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Today you have options to buy/invest in physical gold which can be done online. With this online option you buy and pay for the gold and it is physical gold that is held by a bank for you and your invested gold follows the actual gold bullion price.
When stock markets are in unsure footing gold prices generally rises. Gold is seen as a hedge against inflation and a store of value through thick and through thin.
Currently the price of gold has crossed the $1800 USD mark and it can spell opportunity for the brave who like the bullish pattern of gold prices right now. Around half of all gold demand is driven by jewellery with China, India and the US being primary buyers.
Today we are going to focus on the low cost small cap and also big market cap gold companies in Australia, physical gold buying options and alternative Gold ETF investment options. Australia is ranked no#2 in the top gold producing countries in the world behind china.
Top Gold Companies listed on the Australian Stock Exchange
NORTHERN STAR RESOURCES LTD
Last Price (AUD)$15.960
Northern Star Resources Ltd (NST) is a gold production and exploration company with a resource base located in the gold regions of Western Australia and Alaska. NST is currently involved in exploration, development, mining and processing of gold deposits and sale of refined gold derived from the Jundee, Pogo and Kalgoorlie operations.
The company founded in May 2000 and is headquartered in Subiaco, Australia
Kalgoorlie operations consists of Kanowna Belle mine which is situated in the Eastern Goldfields of Western Australia, East Kundana Joint Venture (Northern Star Resources 51%, Rand and Tribune 49%) is an operational underground gold mining project located in the Eastern Goldfields of Western Australia and South Kalgoorlie
Newcrest Mining Limited (NCM)
Last Price (AUD)$36.350
Newcrest Mining Limited (NCM) is in exploration, mine development, mine operations and the sale of gold and gold/copper concentrate. Gold producer with its portfolio located in Australia, the Pacific region, Asia and Africa.
Mines include Cadia Valley, Lihir, Telfer and Red Chris. The company was founded in 1990 and is headquartered in Melbourne, Australia.
ALKANE RESOURCES LIMITED
Last Price (AUD) $1.255
Alkane Resources Ltd (ALK) is involved in mining operations at the Tomingley Gold Operations, evaluation activities in relation to the Dubbo Project, exploration and evaluation activities on tenements held by the Group and pursuing strategic investments in gold exploration companies.
Tomingley Gold Project:Tomingley Gold Operations (TGO) is located near the village of Tomingley, approximately 50km southwest of Dubbo in Central Western New South Wales. The gold processing plant was commissioned in January 2014 and has been operating at the design capacity of 1Mtpa since late May 2014. Mining is based on four gold deposits (Wyoming One, Wyoming Three, Caloma One and Caloma Two). It has other operating mines too.
GOLD ROAD RESOURCES LIMITED
Last Price (AUD) $1.920
Gold Road Resources Limited (GOR) is a gold exploration Company which owns tenements covering over 5,000sqkm of the Yamarna greenstone belt in WA. The Company currently develops project areas, namely, Gruyere and the Golden Highway.
The Golden Highway:The Golden Highway (formerly known as the Attila-Alaric Trend), which includes the resources at Attila and Alaric, is located on the western side of the Yamarna Greenstone Belt within the Archaean Yilgarn Craton. The Attila-Alaric Trend has delivered 596,000 ounce in Mineral Resources, with upside remaining.
EVOLUTION MINING LIMITED
Last Price (AUD) $5.940
Evolution Mining Limited (EVN) is a gold mining company focusing on mining and exploration operations in Australia. It owns and operates five gold and silver mines in Queensland and Western Australia.
Evolution has entered into an agreement with Newmont Goldcorp Corporation to acquire 100% of the Red Lake gold complex.
REGIS RESOURCES LIMITED
Last Price (AUD) $5.980
Regis Resources Limited (RRL) is a gold production and exploration company in the Eastern Goldfields of Western Australia. Its projects include Moolart Well, Garden Well, Erlistoun, Gloster Gold, McPhillamys Gold Project NSW, Baneygo-Idaho and Rosemont. Former company Names are Johnson’s Well Mining NL (JWM), 30/8/2004. Regis Resources NL (RRL),23/01/2008.
ST BARBARA LIMITED
Last Price (AUD)$3.800
St Barbara Limited (SBM) is an Australian based, ASX listed gold producing and exploring company that deals in the mining and sale of gold, mineral exploration and development. St Barbara’s assets include the Leonora Operations in Western Australia, the Simberi Operations in Papua New Guinea, and the Atlantic Gold Operations in Nova Scotia, Canada.
Some more gold stocks on ASX
- Saracen Mineral Holdings (ASX:SAR)
- Ramelius Resources (ASX:RMS)
- Anglogold Ashanti Australia Ltd
- Newmont Australia Holding Pty Ltd
- Perseus Mining
Gold (Au) trades 24 hours a day on markets throughout the world using the code “XAU”. The London bullion market (LBMA) is regarded as the industry benchmark, with the spot price set twice daily at 10:30am and 3:00pm GMT in US dollars.
VIDEO – Top 20 Gold Producing Countries 1900 to 2018
Investing in physical gold in Australia
Physical gold investors are generally looking for items that are 0.999 fine. Options for investing is gold rounds , gold coins or gold bars. The bars come in a variety of sizes, and as choices can range from a 1 gram bar to 400 ounce bar, this category of products can accommodate a range of investors.
Gold buying can be done through government mints, private mints, precious metals dealers and even jewellery stores.
Where to buy gold bars?
The Perth Mint Gold Cast Bar 1oz, 10oz or 1kg: Each cast bar contains one troy ounce, 9.99 troy ounces and 32.148 troy ounces respectively. The Perth Mint refinery is one of a select group of gold refiners with accreditation from five major global old exchanges.(link: https://www.perthmint.com/invest.aspx )
If you want coins here are some options
- Australian Kangaroo Gold Bullion Coin – A gold coin from the Perth Mint containing one troy ounce of 99.99% pure gold.
- Royal Canadian Mint Maple Leaf – Similar to the coin from the Perth Mint, it contains one troy ounce and 99.99% pure gold.
- American Gold Eagle – A gold bullion coin from the US Mint. One troy ounce of gold at 99.99% purity.
The differences between investing in gold and gold stocks is gold doesn’t provide dividends like stocks do and owning physical gold also comes with attached storage and security fees. However a gold company can close down and go bankrupt, but you can always sell your gold and get some money back.
GOLD ETFS in Australia
Gold ETFs provide exposure to metals prices by offering investors the opportunity to purchase shares that represent a quantity of gold.
In an ETF you own shares of the fund, while the fund owns the physical gold. This gives you exposure to gold, without having to worry about the storage or buying and selling the gold yourself. ETFs are traded on stock exchanges just like shares, making them easier to buy and sell as required.
- Aberdeen Standard Physical Swiss Gold Shares ETF (SGOL)
- BetaShares Gold Bullion ETF – Currency Hedged (QAU) Last Price (AUD)$18.620
- VanEck Vectors Gold Miners ETF (GDX) Last Price (AUD)$61.500
- Sprott Junior Gold Miners ETF (SGDJ)
- ETFS PHYSICAL GOLD ASX: GOLD Last Price (AUD)$254.400
Buying Gold ETF’s can allow you to invest in a range of Gold companies as opposed to just investing in one. THis could work for you or against you as well. While with a ETF there is low risk with more companies in the ETF , there can be lower returns compared to picking a single company where there could higher returns if it performed well.
ETF’S is a good way of investing in multiple gold companies or just investing in the sector, however with people just pouring money into ETFS with a good rising price of the metal, this could also inflate the value of the gold index in excess of what it should be valued.
Gold IPO and New Money
With the pandemic on and no date for the financial situation to get any better in a hurry, Gold is having its prospects shining better. Its not only new Gold Ipo’s coming into the market, but also existing Gold companies raising funds.
What investors need to really be aware of, is that their money is not getting spent on big fat executive salaries rather than being used to drill to find gold. Sometimes you just wouldn’t know if the company is drilling just for drilling sake or then just has been drilling in the wrong spot, until you lose your money.
What to look for in a Gold Company ?
When investing in a gold company it will pay to look a bit further or deeper before you invest. Learn a little bit about exploration and the difference between resources and reserves. Learn what a scoping study means for a mining company versus what a feasibility study is. Know the grades of ore and the potential value of it in money when processed.
History of Gold as a Currency
While gold’s history began in 2000 B.C, when the ancient Egyptians started forming jewelry, it wasn’t until 560 B.C. that gold started to act as a currency.
The creation of a gold coin stamped with a seal seemed to be the first look-into gold as a currency. Following the advent of gold as money, its importance continued to grow throughout Europe and the U.K.
Like any other investment, gold has its benefits and its downsides. It can be a great way to make money or even store your wealth. But it considered to be a safer risk to stocks and its stability also means that it may provide less returns than a stock investment.
You should consider your own circumstances and do your research before investing. If ever in doubt, seek the help of a professional financial adviser.
Archived: originally Published on: Aug 14, 2011
Buying gold Australia
The company is offering an interest in physical Gold, Platinum, Palladium and Silver bullion. The holder of a Metal Security will hold both a redeemable preference share of nominal value and depending on the type of Metal Security held a beneficial interest in approximately 1/10th of one fine troy ounce of either physical gold, platinum or palladium or one troy ounce of silver.
Rates Above & Below does ot indicate the current gold prices*
I bought some gold today at the price of $134.44 ( check above for quantity) as the gold price has dipped a bit , so lets see how it goes , as the gold price is surely going to go upwards given the US govt is still going to print money and the Chinese market figures has slowed downa bit jn the past month
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