When you’re just starting out with investing, or even just trying to stay the course, it’s easy to feel overwhelmed by choice. Should you invest in small amounts into something that grows steadily over time, like managed funds which track exchange-traded funds (ETFs) ? Or lean into what’s been considered a “safe haven” for centuries, like gold ?

Micro-investing and gold might seem like an odd duo to compare. One’s about automation, accessibility, and chipping away at long-term goals. The other is older than modern finance itself and often seen as a place to hide when markets get restless.

But if you’ve ever found yourself torn between the two – or wondered whether they can work together – it’s a common consideration. In this article, we’ll unpack what each approach involves, explore where they shine (and where they fall short), and explain how you might even combine them.

What is micro-investing?

Micro-investing is exactly what it sounds like – investing with small amounts of money. This is usually done through an app or platform that makes the process automatic and fuss-free.

Instead of needing thousands of dollars to get started, you can invest a few dollars at a time. In many cases, you don’t even notice it’s happening (think round-ups from your spending or regular automated deposits).

Most micro-investing platforms channel those small contributions into managed funds which track diversified portfolios . These are bundles of investments – like shares, bonds and commodities – grouped together so you’re not putting all your eggs in one basket.

It's designed as a simple, low-maintenance way to get exposure to a range of assets without needing to pick individual stocks or monitor the market every day.

In Australia, micro-investing has taken off over the last few years. With property out of reach for many, and traditional investing often feeling complex or intimidating, micro-investing lowers the barrier. It seeks to be accessible, it’s flexible, and it gives everyday people a chance to grow wealth in a way that fits into real life.

Whether you’re putting aside $5 a week or $50 a fortnight, micro-investing can potentially help you make progress over time – without needing perfect timing or deep pockets.

What is gold investing?

Gold has been used as a form of value for thousands of years. And while we’re no longer trading it for bread and livestock, it still holds a special place in the world of investing.

As an asset, gold is often seen as a store of value – something people turn to when markets are shaky or inflation’s on the rise. But that protection isn’t always perfect. Unlike shares, it doesn’t represent a business that grows and generates income. It just is . And that’s part of the appeal. Its value depends on what someone’s willing to pay for it at a point in time.

Australians can invest in gold in a few different ways. You can:

• buy physical gold (bars, coins, or jewellery),
• invest in ETFs that track the gold price,
• choose a managed fund that includes gold exposure, or
• buy shares in gold mining companies .

Each option comes with its own risks, fees, and features – so it’s worth knowing what you’re buying into , not just what you’re buying.

The main reasons people invest in gold are stability and diversification . It behaves differently to shares, which means it can potentially help balance out the risk in a broader portfolio.

Gold might suit investors who already have the basics covered – l ike a diversified portfolio – and want to add a layer of protection. It can also appeal to cautious investors who prefer assets that feel more “tangible” or time-tested.

Micro-investing vs gold: comparing apples to… shiny apples?

Deciding where to start investing, or how to diversify? It can help to see how micro-investing and gold compare side by side. Let’s break it down.

Accessibility

Micro-investing is designed to be accessible. As mentioned, most platforms let you start with as little as a few dollars and automate the process. You don’t need to know much about markets or even remember to log in regularly.

Gold , depending on how you access it, can require more upfront research. Buying physical gold may involve secure storage and insurance. By comparison, gold ETFs and managed funds are more accessible, especially via online brokers.

Risk profile

Micro-investing typically spreads your money across a range of assets. Depending on what asset your micro-investing fund is tracking (such as diversified ETFs ), you may lower your overall risk, but never remove it. Markets rise and fall, and even diversified portfolios can go through tough patches.

As we’ve said, gold is often seen as a hedge – something that may hold value when markets fall. But it’s not without volatility, and the price can move up or down sharply in response to global events.

Potential returns

With micro-investing , the returns depend on what you’re investing in. A fund tracking a diversified ETF may include assets with growth and income potential, but results vary over time. They also aren’t guaranteed, due to market conditions and costs.

Again, gold doesn’t generate income, and relies entirely on price movements. If it goes up, great. If not, there’s no dividend or interest to fall back on.

Time horizon

Micro-investing is generally built for the long haul. It's about small, regular steps towards future goals – like Financial Independence or retirement.

Gold can play a role over shorter or longer periods, but it’s often used for stability or preservation rather than growth.

Liquidity

Micro-investing platforms typically offer high liquidity. You can usually withdraw funds quickly, though how long that takes can depend on the platform or underlying investment.

Gold can be liquid – if it’s held in an ETF or on a digital platform. But physical gold isn’t as straightforward. You’ll need to find a buyer, confirm authenticity, and handle secure transfer.

Diversification benefits

Micro-investing , especially into diversified portfolios, also offers built-in diversification – just through a different mix of assets like shares, bonds, and sometimes commodities (including gold, depending on the fund).

Gold behaves differently from other assets, which is why some investors use it to diversify. It often reacts in different ways to market movements, which can help smooth out returns.

Behavioural factors

Investing is about more than the outcomes – it’s also about how we respond to them.

Micro-investing by design seeks to reduce decision-making. It encourages consistency and reduces the urge to time the market. It’s more like building muscle with reps at the gym: slow, steady, and focused on habit.

Gold can attract more emotionally-driven decisions. When markets wobble, gold often gets attention – which can lead to reactive buying or selling. It’s more like storing water for a drought: useful in a crisis, but less predictable day to day.

Can you combine the two?

In short: y es, it’s possible to micro-invest in gold.

Some micro-investing funds track the price of gold directly, while others include gold as part of a broader mix of assets. In other words, you could choose to allocate your micro-investing dollars towards, for example, a fund tracking a gold ETF, or or a diversified fund that includes gold exposure.

This can theoretically offer a way to blend the accessibility of micro-investing with the defensive qualities gold is known for. What matters most is understanding what you’re investing in. Just because a fund mentions “resources” or “commodities” doesn’t mean gold is a major component.

Before combining the two, it helps to look under the hood. What percentage of the fund is allocated to gold? Is it physical gold, gold miners, or something else entirely? Consider how that fits with your goals, time horizon, and risk appetite .

This kind of combo might suit some investors, especially those wanting to build exposure gradually. But whether it works for you depends on what you're trying to achieve.

Growing wealth your way

Micro-investing and gold might seem worlds apart, but they don’t have to compete. Though they can achieve different outcomes, for some investors, they can even work side by side.

If you’re weighing up where to begin, it helps to step back and get clear on your why . Are you looking to build long-term wealth with steady contributions? Hoping to preserve value through uncertain times? Or aiming for a bit of both?

You don’t need all the answers upfront. In fact, you don’t need to get everything “right” from Day One. Start with a strategy that feels achievable and aligned with your goals. You can always refine things as you go.

Whichever path you take – whether it’s micro, shiny, or somewhere in between – what matters is that it makes sense for you .