Gold Hits Record High in Australia, Sparking Investment Rush
Gold prices have reached an all-time high in Australia, surging to AU$6,033.80 per troy ounce. This significant increase has sparked a wave of interest among Australian investors, with couples like John and Margaret from South Australia buying gold for over a decade and purchasing more on Tuesday. Aussies have been queuing outside gold dealers all week to capitalise on the opportunity.
The price of gold has surged by around 50 per cent this year, putting it on track for its strongest annual performance since 1979. This remarkable rise has been driven by various factors, including tariff uncertainty, inflation, and a falling US dollar, according to analyst Bret Kenwell. Gold's status as a safe-haven asset during market instability has also contributed to its appeal.
Nicholas Frappell, Global Head of Institutional Markets at ABC Refinery, notes an increased awareness among Australian investors of gold's protective qualities. This awareness, coupled with Australia's status as one of the world's largest gold producers, has led to a surge in domestic demand. In fact, gold could potentially overtake Liquefied Natural Gas as Australia's second-highest value export this financial year.
Despite the uncertainty surrounding the size of undiscovered gold deposits in Australia, recent high-grade discoveries, such as those by Golden Cross Resources at Reedy Creek in Victoria, suggest significant potential. Historical and modern exploration hints at the possibility of million-ounce deposits in previously unexplored areas.
With gold investments performing steadily over the past two decades, rising almost 10 per cent per annum, and the current surge in prices, Australian investors like John and Margaret are capitalising on the opportunity. As gold continues to gain traction, both domestically and internationally, Australia's gold industry looks set to play an increasingly significant role in the global market.
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