Why Australians Buy Physical Gold
Physical gold has been a store of value for thousands of years. In Australia, there are three main reasons people buy it: as a hedge against inflation and currency weakness, as a safe-haven asset during economic uncertainty, and as a long-term savings vehicle outside the banking system.
Unlike gold ETFs or mining shares, physical bullion gives you direct ownership of an asset that holds intrinsic value regardless of what happens to financial markets. You can hold it, store it, and sell it without a broker or counterparty.
Coins vs Bars: Which Should You Buy?
The two main forms of bullion available from Australian dealers are coins and bars.
Gold coins such as the Perth Mint Kangaroo, the Royal Canadian Maple Leaf, and the Austrian Philharmonic are minted by government or sovereign mints and carry legal tender status. They typically carry a slightly higher premium over spot than bars, but are more liquid and easier to sell privately. You can compare all gold coin prices across every major Australian dealer on our coins page.
Gold bars come in cast and minted varieties. Cast bars (poured into moulds) carry lower premiums than minted bars (stamped and finished). Larger bars (10oz, 100g, 1kg) generally have lower premiums per ounce than small bars, making them better value if you plan to hold rather than sell individual pieces. See all gold bar prices to compare your options.
Understanding the Premium Over Spot
The gold spot price is the global benchmark price for one troy ounce of gold. Dealers charge a premium on top of this to cover manufacturing, distribution, storage, and profit margin.
A typical 1oz gold coin from a reputable Australian dealer carries a premium of 4 to 8% over spot. A 1oz cast bar might carry 2 to 5%. A small fractional coin (1/10oz) can carry 15 to 25% due to the higher manufacturing cost relative to metal content.
This is why comparing prices before you buy matters. The same 1oz Kangaroo can vary by A$150 to $300 between dealers on any given day. Our 1oz gold comparison table shows the live premium for every product sorted cheapest first, including both coins and bars.
Which Dealers Can You Trust?
Australia has a well-regulated bullion market. The major dealers include Perth Mint, ABC Bullion, Ainslie Bullion, Guardian Gold, Jaggards, Gold Stackers, KJC Bullion, and Gold Bullion Australia. All are long-established businesses with strong reputations. You can read more about each on our dealers page.
The Perth Mint is government-owned (Western Australian Government) and one of the most trusted precious metals institutions in the world. ABC Bullion is a subsidiary of MKS Group, a major global metals trader. The other dealers are privately owned businesses with years or decades of trading history.
All reputable dealers will provide a product receipt and GST invoice where applicable. Be cautious of private sellers on platforms like Gumtree or Facebook Marketplace unless you can verify authenticity in person.
Is Gold GST-Free in Australia?
Yes. Investment-grade gold is GST-free under Australian law. To qualify, gold must be at least 99.5% pure and sold in a form recognised for investment (bars or coins, not jewellery).
This means when you buy a 1oz Perth Mint Kangaroo or a 100g ABC Bullion minted bar, no GST is included in the price. The price quoted is what you pay.
Silver is different. Silver bullion is subject to 10% GST in Australia. Dealers typically include GST in their quoted prices, but always confirm before purchasing. For a full breakdown of the rules, see our GST guide for gold buyers.
How to Compare Prices and Find the Best Deal
The fastest way to find the cheapest dealer is to use our live price comparison tables updated every few hours from all major Australian dealers.
When comparing, look at the premium over spot (shown as a percentage) rather than the absolute price. A lower premium means you are paying less above the gold's intrinsic value, and that difference compounds over time.
Also consider:
- Buy price (what you pay today)
- Sell/buyback price (what the dealer will pay when you sell)
- The bid-ask spread (difference between buy and sell): the tighter the better
- Postage and insurance costs, which vary by dealer and order size
For a ranked view of every 1oz gold product available in Australia sorted cheapest first, use our 1oz gold comparison tool.
Storage: Where to Keep Your Gold
Once you have purchased physical gold, storage is your responsibility (unless you buy allocated storage from a dealer).
Home safe: Convenient and private, but carries theft and insurance challenges. A good floor safe rated for precious metals is the minimum standard. Do not store more than your home insurance covers for valuables.
Bank safe deposit box: Secure but limited access. Note that contents are not covered by the bank; you need separate insurance.
Dealer allocated storage: ABC Bullion and the Perth Mint offer allocated (your specific bars) and unallocated storage. Allocated storage carries a small annual fee but provides maximum security and liquidity. You can sell without physically moving the metal.
If you hold gold inside superannuation, storage rules are stricter. See our SMSF gold guide for full details.
How to Buy: Step by Step
- Check the live gold spot price and calculate what a fair price looks like for your chosen product.
- Compare dealer prices on our site. Sort by premium to find the cheapest option.
- Register or log in to your chosen dealer's website. Most require ID verification for orders above $1,000 under AML/CTF regulations.
- Add the product to cart and checkout. Payment by bank transfer is usually cheapest (no surcharge); credit cards typically add 1.5 to 2.5%.
- Confirm delivery or pickup. Most dealers offer insured registered post. Allow 5 to 10 business days. Perth Mint and ABC Bullion have physical showrooms if you prefer to collect in person.
- Keep your receipt and any certificates of authenticity. These are important for CGT record keeping if you sell later.
