Gold Rush: Aussie Fund Managers Bet Big on Bullion Boom

The Australian Financial Review wrote a very interesting article in March (18 March 2025 "Gold price fever pitch as fundies spruik 100pc gains") that Australian fund managers are racing to launch gold-focused investment funds, seizing on record-breaking prices that have pushed bullion past $US3000 an ounce for the first time. Gold has climbed more than 14% in 2025 alone, and 40% over the past year, with major banks repeatedly raising their forecasts.

While gold stocks had lagged due to cost pressures, they are now gaining ground. The NYSE Arca Gold Miners Index is up 30.8% this year, with the ASX equivalent rising 29%.

Collins St Asset Management is reopening its Special Situations Fund to new investors after a near 80% surge in 12 months, claiming select small- to mid-cap stocks could double in value if gold remains strong.
L1 Capital has also launched a gold fund, targeting mid-cap companies in Australia and North America, using a long/short strategy to balance gains with downside protection. Notable holdings include Westgold Resources and Eldorado Gold.

Meanwhile, the Victor Smorgon Group has debuted a second gold fund, eyeing returns over 50% in 18 months. Portfolio manager Cameron Judd believes the strategy’s concentrated picks of global miners offer “exceptional upside with low downside risk.” He also warned that Trump-era tariffs could spur stagflation, pushing gold to $US3600 an ounce.

Macquarie and Bank of America share similar views, lifting long-term price targets to $US3500. Investor sentiment has followed suit, with net buying of gold ETFs this year reversing a four-year trend. February saw the largest monthly inflows into North American ETFs since July 2020, partly driven by a price arbitrage between New York and London markets.
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To meet growing local demand, Global X is launching a new ETF tracking gold in Australian dollars, set to begin trading by the end of March.