PhD chemistry student Lloyd James has spent four years researching how gold nanoparticles could be used to create new anti-arthritic drugs that are more effective, and have fewer side effects.

"It may not seem like an obvious choice using metals in medicine and therapy but there have been a number of examples over the years," Mr James said. "Gold, in particular, has a history of usage for rheumatoid arthritis, which is nearly 80 years long; with gold compounds discovered in the 1930s showing good activity against rheumatoid arthritis.

"Today, those gold drugs aren't as popular because they were found to have a lot of side effects including kidney and liver problems, anaemia and dermatitis. Plus they were pretty ineffective, taking three to six months to produce the clinical effect."

Mr James said overseas research had since indicated that a new and different formulation of gold might be the key to future success - namely gold nanoparticles.

He said these tiny particles - which are 1000 times smaller than the width of a human hair - could be absorbed into cells with much less toxicity.

"Most drugs and therapies contain single molecules but a gold nanoparticle can contain 50 to 300 atoms of gold," Mr James said. "Because of this, it fundamentally changes how they interact with biological materials."

The Wollongong-born chemist said while the research was in its early stages, it could eventually provide relief for the 445,000 Australians suffering from rheumatoid arthritis.

"Rheumatoid arthritis is an autoimmune disease, which involves cells of the body that should be protective but are actually attacking the joints," Mr James said.

"We're very encouraged by our research, which shows that these nanoparticles could produce the anti-inflammatory effects which are the hallmark of treating the disease, while not causing any toxic effects upon cells."

Mr James said it was interesting that the use of gold in treating this painful condition could come "full circle".