Precipitous drops in the spot price of gold are basically unheard of in today's market. That was, until this week, when gold took on a life of its own. We asked an expert what's behind it, and if it will keep going down.

Take a look at the below graph, and you instantly see the appeal of the world's premier precious metal. 

It's had a pretty steady run-up for the last half-century on the markets.

In fact, the last time gold had a prolonged period of devaluation was in the 2010s. From the end of 2012 through to the end of 2015, gold backslid from around US$1700/oz to a little over US$1000/oz. This was back when governments were winding back quantitative easing programs designed to boost struggling economies during the 2008 recession. Low inflation teamed with the slow recovery of the Eurozone and its mounting debt crises also saw the market shun gold. 

Since then, gold has been on a tear. Between October 2016 and October 2025, gold has 4x'ed in value. What used to cost around US$1100/oz now runs you in the neighbourhood of US$4125 at the time of writing.

But today's price isn't as high as gold has ever been. That was on Tuesday of this week, when the price almost touched US$4400/oz. Since then, the price has backslid: something we haven't seen it do for almost a decade.

The backslide

You've likely seen the lines around the block of people looking to buy gold, especially in Sydney. Martin Place plays host to ABC Bullion's local boutique where buyers and sellers have congregated over the last few weeks to board the golden hype train.

This week I reached out to our friend and recent Switzer podcast guest, Managing Director of ABC Bullion, Jordan Eliseo, to give us the lowdown on the recent price slide.

Jordan shared that while gold has definitely slid in the last few days, the numbers still show an impressive run, and its "no great surprise" to see the price pull back after a surge in hype.

So, should we expect it to slide further?

"The sell off has already helped remove "froth" from the market. It wouldn’t surprise if gold remained in a corrective phase short-term, a phenomenon that has been observed many times in multi-decade bull markets," Jordan shared.

He added that, even if the price does continue to quietly correct itself in the short-term, gold still has a place in a diversified portfolio. 

"It hasn’t weakened my view that gold can provide unique benefits to a portfolio, from its inflation resistance to its diversification qualities. There is no other zero credit risk multi trillion-dollar asset class on offer in the global marketplace that offers those attributes, which is the reason central banks are such big buyers and holders of gold. 

"So while gold shouldn’t be expected to generate returns of 50% per annum on a consistent basis, I still see scope for sustained price growth in the years to come, and a continued rise in demand."

How can you get in on gold?

Many investors add gold to their portfolios because it has historically acted as a safe haven during times of economic uncertainty. When stock markets become volatile or inflation rises, gold often retains its value or even increases, providing a buffer against losses in other asset classes. Its track record over centuries as a store of value gives investors confidence that it can help protect their wealth when traditional investments are under pressure.

Another reason people invest in gold is for diversification. Gold’s price movements typically don’t follow those of shares or bonds, so including it in a portfolio can reduce overall risk and smooth out returns. By holding an asset that behaves differently to other investments, investors aim to build a more resilient portfolio that can perform better across a range of market conditions.

If you're still convinced gold is for you - and remember to do your research on that one and/or consult a professional before doing so - there are several ways to get in.

There are several ways investors can gain exposure to gold, each with its own advantages and considerations. The most direct method is purchasing physical gold in the form of bullion bars or coins, which offers ownership of the actual metal but comes with challenges around secure storage and insurance. For those who prefer a simpler approach, gold-backed exchange-traded funds (ETFs) allow investors to buy shares that track the price of gold without needing to handle the physical asset.

Another common mechanism is investing in gold mining companies through shares or managed funds. These companies’ stock prices are often influenced by gold prices, but also by operational factors and broader share market trends, so they don’t always move in lockstep with the metal itself. Some investors may also choose gold futures or options contracts for leveraged exposure, though these products can be complex and carry additional risk. Each approach offers a different mix of liquidity, risk, and potential reward, so the best choice depends on an investor’s goals and comfort level.

Jordan Eliseo of ABC Bullion has been through our studios a few times to share his thoughts on how to invest in gold, and you should take a look at his interviews if you're interested!