What is PMGOLD?

Sawan Tanna, Treasurer of The Perth Mint, discusses the exchange-traded fund PMGOLD (ASX:PMGOLD).

Mr Tanna explains that PMGOLD was one of the first exchange-traded products on the ASX when it launched in 2003 and has since grown strongly as Australians increasingly embrace ETFs. Each unit represents roughly 1/100th of an ounce of gold, directly tracks the gold price in Australian dollars, and is 100% backed by physical gold stored at The Perth Mint. The product carries a low management fee of 15 basis points, is guaranteed by the Western Australian government with a triple-A credit rating, and investors even have the option to convert their holdings into physical gold delivered to their homes.

Tenor highlighted why investors might prefer the ETF over buying physical gold directly: ease of purchase through a trading account, no need to handle storage or insurance, and no fabrication fees. He also noted that PM Gold has performed strongly, returning almost 43% in the past financial year—making it one of the ASX’s top ten ETFs—driven by global uncertainty, de-dollarisation, US debt risks, and trade tensions. However, he cautioned that returns are influenced by exchange rates, since gold is priced in US dollars.

Finally, he emphasised PM Gold’s suitability for a wide range of investors, from beginners to institutions, as a simple, low-cost way to gain exposure to gold and diversify portfolios. Its unique advantages compared to other gold funds—low fees, physical gold backing, government guarantee, and storage in Australia—set it apart as a secure and accessible option.