Gold provides security in sell-off

Gold ETF volatility ETFs ETF Securities kris walesby

12 March 2020
| By Oksana Patron |
image
image
expand image

Traditional safe-haven asset, gold, will continue to provide security for investors facing the global economic sell-off and increased market volatility, according to ETF Securities.

The company’s chief executive, Kris Walesby, warned that since uncertainty over coronavirus already hit a range of industries, from travel to manufacturing, with countries struggling to implement a range of measures in the attempt to control the spread, gold was viewed as one investment that could be more than just a safe haven during sharemarket volatility.

“It can also offer diversification against all asset classes. Its ability to perform in all markets as both a consumer-driven, as well as an investment-driven asset, means it has both defensive and growth characteristics,” he said.

“We will continue to witness the increased interest in gold as ‘lower for longer’ interest rate environment becomes the norm and may even accelerate given the new wave of Quantitative Easing that might be introduced.

“We expect gold prices to remain high in light of these changes.”

“While physical gold holdings, derivatives in the form of futures contracts or using gold mining stocks as a proxy may have been the primary options for investment in the past, ETFs have made this commodity more accessible than ever to investors globally,” Walesby said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

59 minutes 32 seconds ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 6 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 4 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 7 hours ago