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

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS