Gold might be safe option
Investors should take a closer look at including gold in their portfolios at times of growing uncertainty in 2019, ETF Securities has said.
According to the firm, investors could benefit from gold’s ability to appreciate in a bear market due to its low or negative correlation with stocks and bonds.
This could be of particular importance given broader geopolitical risks, fuelled by growing US-China tensions and Brexit, ETF Securities’ chief executive, Kris Walesby, said.
“It’s also far from clear how aggressive the US Fed might be as it continues to raise interest rates. And at home we have a housing market downturn and a looming election throwing up headwinds,” he noted.
The firm’s GOLD ETF, which offered investors exposure to movements in gold prices in Australian dollars, jumped in December by 9.15 per cent, compared to a 0.37 per cent decline in the ASX 200.
According to Walesby, the fund’s performance was driven by the vital role that gold played in a “sensibly diversified portfolio”.
“Through our GOLD ETF, investors can have that diversification without any related transport, storage or insurance costs.”
AUTHOR
Oksana Patron
Recommended for you
The $673 billion global investment manager has appointed a former Zenith sales head as it seeks to expand its reach in the Australian wealth management market.
Fund managers may be operating in a squeezed environment, but a salary guide shows they are willing to pay up for specialist talent to diversify their fund range.
Reach Alternative Investments has entered into a strategic partnership with Russell Investments to bolster its wholesale private markets offering for financial advisers and investors.
Boutique investment consulting and research house Genium Investment Partners has announced a senior appointment to drive further growth in its research ratings business.
