Just like every other country and financial market in the world, the gold price in Australia is determined by the gold fixing standard, a benchmark created by the major players in the gold bullion market who are members of the London Bullion Market Association.
Gold Price Performance
If you go to any reputable website that offers comprehensive gold price performance statistics, you’ll easily see why gold is so popular as an investment method.
While the daily and monthly gold price performance may fluctuate in percentages based on supply and demand, as well as investor sentiment and country-specific economic environments, you can also see the detailed long-term results.
For the past 20 years, however, the long-term graphs show a sure and steady increase in the gold price Australia. Even with fluctuations in the economy country-wide, the price of gold has typically climbed from approximately $500 per ounce in 2002 to about $2,200 per ounce in 2021. That is a total increase of more than 125% – not bad at all for an investment!
The Role of Australia in the Gold Market
In 2010 Australia was listed as one of the world’s top three largest gold producers and it was also credited with being the country with the biggest and most unmined gold deposits globally as per the US Geological Survey’s gold statistics and information research center.
In 2003 an Australian businessman launched a brand new ETF (Exchange-Traded Funds) company called ETF Securities. This asset management firm started the first gold ETF security trading on the Australian Stock Exchange and originally stood for 0.1 ounces or 3.1 grams of gold.
Australia is also one of the few countries which still make use of gold pool programs to issue gold certificates. These gold certificates allow investors to avoid the risks associated with owning and storing physical gold and instead represent the gold price of their gold investment, which is held by a secure bank or similar gold reserve.
A commonly popular gold bullion coin is the Australian Gold Nugget, minted by the Perth Mint and usually featuring a kangaroo on its reverse side. Because they are produced in limited annual series, their overall value increases every year, over and above the value of the gold used in the production of the coin. The Australian Gold Nugget is available in different sizes and denominations, from as small as 1/20th of an ounce to as large as 1kg of 24-carat gold.
In 2011 the Perth Mint set a new world record by creating a one-tonne gold coin, the largest in the world. Although the face value of the gold coin was set at $1 million AUD, its minted value was over $53 million.
The Future of the Gold Price in Australia
Given the rich untouched gold deposits of the country as a whole, it’s fair to say that the gold price in Australia will continue to enjoy a stable future as it remains a popular global commodity and a great source of investment.