Gold ETF hits $2b

30 July 2020

ETF Securities has announced that its gold exchange traded fund (ETF) saw assets double in less than a year due to a combination of price moves and inflows.

The fund hit $1 billion milestone in assets under management (AUM) with its Gold ETF, ETFS Physical Gold, in September 2019 and year to date inflows total $578 million into the fund as at 28 July and total assets under management are now $2 billion.

According to Kris Walesby, chief executive officer of ETF Securities, this only confirmed a truism that in times of trouble triggered by a global pandemic and a possible global recession, investors tended to turn to gold. On top of that, comes the heightened trade and security tensions between the world’s two largest superpowers, USA and China.

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However, the question for the average investor who subscribes to the gold ascension is how to act, he said.

The two simplest, efficient and most accessible routes to gold ownership are via investing in ASX listed gold mining equities, like the three largest Australian producers – Newcrest Northern Star and Evolution Mining. Alternatively, and just as easily, investors can purchase a pure gold ETF, again listed on the ASX,” Walesby said.

“Without wishing to sound too pessimistic, let’s not forget that gold should do well if, and when, investors realistically evaluate the chances of a sustained equity market recovery compared to the possibility that the world may be entering the first great depression of the 21st century.”

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