Why New Zealand needs to learn more about gold

Tony Coleman, managing director of New Zealand Gold Merchants, explains why.

Gold is currently enjoying significant visibility. Gold prices are at a record high, and thanks to Resource Minister, the Hon. Shane Jones, there’s heightened enthusiasm as he travels the provinces, promoting how this government supports the mining sector and encourages the extraction of underground minerals to boost the economy. Internationally, geopolitical forces and financial uncertainties continue to push metal prices higher. Whether we like it or not, New Zealand’s precious metals are now in the spotlight, coinciding perfectly with record-high gold prices. But do New Zealanders truly understand gold?

If we aim to benefit from this generational upswing in gold prices on the global stage, we must deepen our understanding because knowledge is power—particularly for everyday Kiwis. Gold investments can indeed be lucrative, not only for large companies and investors but for everyday New Zealanders as well. Historically, gold has been largely out of sight, absent from the public consciousness, as evidenced by the low level of investment by New Zealanders in precious metals. But that’s changing now. A lot is happening right in our backyard, and it’s crucial we become knowledgeable about it.

When considering countries that truly understand their natural resources, Australia immediately comes to mind. Mining contributes around 12.2% of Australia’s GDP, resulting in Australians actively engaging with commodities like gold. They don’t just monitor the market; they actively participate, work, and invest in it. Australia’s gold market employs around 31,000 miners.

In contrast, New Zealand employs about 6,300 miners with investors largely remaining on the sidelines. However, with increasing global attention on our precious metal reserves, it’s time for us to start paying more attention. It’s essential for everyday Kiwis to build their understanding and potentially benefit from this shift.

New Zealanders often perceive gold as something abstract – stored overseas or traded by central banks. In reality, it’s a tangible asset that has been a cornerstone of wealth preservation for centuries. Property has traditionally been New Zealand’s primary investment choice, with house prices rising over 226% between 2004 and 2024. But after such explosive growth, it’s reasonable to question how much more room there is for property prices to increase.

Many Kiwis are beginning to diversify, driven by tech that makes it easy to invest and greater financial literacy. The more we understand gold, the better positioned we are to navigate and benefit from these developments. Admittedly, I’m biased—gold has been my family’s business for over 50 years—but I genuinely believe gold is a fundamental part of any balanced investment portfolio.

My family has dedicated our lives to understanding gold. My father founded NZ Gold Merchants in 1975, and it’s been quite a journey. Investing in gold isn’t just about returns; it’s about education. Observing market movements, experiencing its cycles, and understanding gold’s role in wealth preservation enhances financial literacy—which is always valuable.

Australia’s ingrained mining culture gives Australians an innate appreciation for their resources. While New Zealand might not match Australia’s mining scale, we still possess significant natural resources, and whether we like it or not, these resources are increasingly central to our national dialogue. Now is the time for Kiwis to educate themselves, look beyond traditional investments, and actively engage with the gold market.

How to get started

To facilitate accessible gold investment, New Zealand Gold Merchants (NZGM) has introduced GoldSaver, which enables individuals to accumulate gold through regular contributions starting from as little as $50 per month. This initiative allows participants to purchase gold in weekly, fortnightly, or monthly intervals, making gold ownership more attainable for everyday Kiwis.

GoldSaver accounts are pooled, providing investors with a share of physical gold securely stored in NZGM’s vaults. Account holders can monitor their holdings and transaction history via an online platform, offering transparency and ease of management. When ready to liquidate, users can sell their gold back to NZGM or convert their savings into physical gold or silver.

GoldSaver charges no fees, covering both storage and insurance costs, reinforcing NZGM’s commitment to supporting Kiwis in their financial journey.

Find out more at www.gogold.co.nz/goldsaver

Disclaimer: Past performance is not a reliable indicator of future performance. Returns may go up or down and are not guaranteed.