How to Invest in Precious Metal Assets

Gold, silver, and other precious metals are typically seen by investors as store-of-value assets that help reduce portfolio risk. But what are the downsides? And how do you even go about investing in a precious metal like gold or silver, anyway? These questions are addressed below.

Investing in Gold, Silver & Other Precious Metals

When thinking about investing in precious metal assets like gold or silver, we often picture physical bullion bars. But most people don’t realise that this is just one way to gain investment exposure to precious metals. Below are some other options that are commonly chosen by investors looking to buy gold, for example, but aren’t keen on acquiring physical gold bullion bars.

Exchange-traded funds (ETFs)

These investment products represent a convenient and liquid way to gain exposure to precious metal assets. Most come in the form of a so-called physically-backed ETF, meaning the precious metal itself is stored on behalf of those invested in the corresponding ETF.

Read: What Are Financial Markets?

Precious metals mining companies

Buying shares in a publicly-listed mining company, or a listed investment company (LIC) that specialises in the resources and mining sector, is another way to invest in precious metals, albeit indirectly.

With investing in mining companies, though, the growth and return in the stock depend not just on the spot price of gold, but also on the expected future earnings of the company that has issued the shares.

Precious metals tokenised on Ethereum

These tokens exist on a public blockchain like Ethereum and are fully backed by precious metal. Typically, one token is equivalent to one gram of a given precious metal. This is true for each of Ainslie Wealth’s Gold Standard (AUS) and Silver Standard (AGS) tokens, for instance. To maintain trust, tokenised precious metal issuers routinely have the corresponding real-world precious metal holdings verified by an independent auditor.

You can buy AUS and AGS tokens on CoinSpot, one of Australia’s leading crypto exchanges. This news was monumental for precious metals and crypto investing in Australia, as it gave investors and traders a newfound ability to trade gold and silver 24 hours a day, 7 days a week from anywhere in the world.

(For investors wondering why spreads on precious metals are typically higher than cryptocurrencies, consider reading the latter half of Ainslie Bullion’s Aug. 2019 blog post. As always, over-the-counter buying and selling of AUS and AGS tokens are available through Ainslie Wealth.)

What’s So Precious About Gold & Silver Investing?

People have been investing in precious metals such as gold and silver for centuries on end. But why? There must be some reason, no?

When hearing why people choose to invest in precious metals, a reason often pointed to is the asset class’ perceived status as a store of value. Indeed, precious metals exist independent of monetary systems based on government-issued fiat currencies. For this reason, you’ll often see gold and silver investments touted as a hedge against a would-be devaluation of a given nation’s currency.

To be sure, the topic of currency devaluation is particularly relevant in the current macroeconomic and geopolitical landscape. All over the world, be it the Bank of Japan, U.S. Federal Reserve, or European Central Bank, we are seeing central banks once more pursue quantitative-easing strategies.

Downsides to Precious Metals Investing

By and large, gold and other precious metals are unproductive, non-yielding assets. That is to say, a precious metal investment cannot be ‘put to use’ in an attempt to generate a return.

When you invest in property and subsequently rent it out, for example, your asset can be thought of as ‘working’ for you. The same goes for equity investments. The capital you provide the company, in exchange for an ownership stake (i.e. shares), is put to use in an attempt to bolster shareholder value, which comes in the form of dividend payouts and/or share price appreciation.

Tangentially, another common criticism associated with precious metals investing is that the opportunity cost of holding an asset like gold or silver is too high. (Opportunity cost refers to the value of the next best alternative forgone as a result of making a decision.)

Whilst precious metals have been known to generate far greater returns than other popular types of investments here and there (e.g. in the years following the global financial crisis (GFC)), there exists an uncomfortably large number of five- and 10-year periods wherein precious metals’ returns were far inferior to those realised in equity and property markets.

Storing Precious Metals

Let’s assume you do choose to invest in physical precious metals such as gold or silver bullion. The question now becomes: “Where are you going to store it?” Indeed, storage is something precious metal investors must carefully consider.

Of course, there’s the option of home storage. For those that envisage themselves hoarding gold for the long term, spending time and money setting up a high-security storage solution on your property may be worthwhile. A big drawcard associated with storing precious metals at home is that it eliminates counterparty risk, the risk of the other party (or parties) to a financial transaction failing to meet its obligations. However, home storage brings with it a heightened level of personal risk.

Another option that’s popular amongst investors looking to store their precious metals is by entrusting them with a private company that specialises in operating vault security systems. Often, these high-security vault operators offer insurance coverage, something that is incredibly difficult to access if you’re storing your precious metals at home. High-security vault operators can be found in most of the world’s major cities.

Central banks doing more of this printing and buying of assets will produce more negative real and nominal returns that will lead investors to increasingly prefer alternative forms of money (e.g., gold) or other storeholds of wealth.

Ray Dalio (Paradigm Shifts; July 18, 2019)

Gold and Bitcoin in 2026

Gold and Bitcoin are often compared as stores of value, and in 2026 they moved more closely together than usual. On 2 September 2026 Collective Shift's Research Hub recorded that Bitcoin's 90-day correlation with gold had reached an all-time high, as both assets rallied on macro concerns and central bank policy uncertainty.

Correlations change, so treat this as context rather than a rule. The two assets still differ in important ways: gold has thousands of years of history and physical form, while Bitcoin is a digital asset with a fixed issuance schedule.

• Physical bullion: direct ownership, but storage and insurance costs.
• Exchange-traded products: easy to trade, with management fees and a custodian.
• Mining shares: exposure to the metal price plus company risk.
• Tokenised gold: on-chain ownership claims that depend on the issuer and custodian.

What the research says about gold, Bitcoin and diversification in 2026

Views on how gold and Bitcoin relate have shifted through the year, which is a good reminder not to lean on any single narrative. In May 2026, the Research Hub recorded JPMorgan analysts reporting that institutional investors were increasingly choosing Bitcoin over gold as a hedge against currency debasement. By June 2026, the same analysts reported that this trade had retreated for Bitcoin while continuing for gold.

In June 2026, Fidelity's Jurrien Timmer noted that gold had become more correlated with both stocks and bonds, which reduces how much it diversifies a portfolio. Then in early September, Bitcoin's 90-day correlation with gold reached an all-time high.

The takeaway is that the relationships between assets change. Decide what role each asset plays in your plan, such as long-term store of value, diversifier or growth, and review it on a schedule rather than reacting to each headline.

How Collective Shift research views precious metals and Bitcoin

Collective Shift's research team watches the relationship between Bitcoin and gold as part of its market context, and the Research Hub tracked several shifts in 2026, summarised above.

In the October 2026 cohort's Week 1 session, Build Your Strategy Sheet Live, the team started with a personal balance sheet: list everything you own and owe before deciding where any single asset, including precious metals or crypto, fits.

• Compare assets by role in your plan, not just recent returns.
• Check fees and custody for every route.
• Review correlations over time, not once.

Look at your finances as a balance sheet first. Many people haven't checked their shares, super or other assets in a while, and you can't decide where an asset fits until you know what you already hold.

Paraphrased from the Collective Shift team, (Oct Cohort Week 1) Build Your Strategy Sheet Live (October 2026)

Where this guide comes from

This guide is written and reviewed by the Collective Shift research team. Collective Shift is a crypto research and education company founded in 2020 in Melbourne, and a research and education partner to Coinbase, Swyftx and CoinSpot. Sources used in this update:

• Collective Shift Knowledge Hub: Research Hub: Bitcoin and gold correlation hits all-time high (2 Sep 2026) (ref 6fc19481), original source: www.theblock.co
• Collective Shift Knowledge Hub: Research Hub: JPMorgan says Bitcoin gaining on gold as debasement trade (8 May 2026) (ref 72b91616), original source: www.theblock.co
• Collective Shift Knowledge Hub: Research Hub: JPMorgan reports 'accelerated' retreat from Bitcoin debasement trade (12 Jun 2026) (ref 965b5d72), original source: www.theblock.co
• Collective Shift Knowledge Hub: Research Hub: Jurrien Timmer on gold correlations (14 Jun 2026) (ref a0fc404e)
• Collective Shift Knowledge Hub: (Oct Cohort Week 1) Build Your Strategy Sheet Live (6 Oct 2026) (ref d67ca0fd)

Last updated 30 October 2026. General information only, not financial advice. Consider your own circumstances and seek professional advice before making investment decisions.

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