ETF Securities: GOLD A Performer For Troubled Times

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  • Mounting uncertainty in 2019 calls for portfolio diversification and a keen focus on reducing losses
  • A standout monthly rise by ETFS Physical Gold (ASX code: GOLD) – up more than 9%, and 11% for Q4, far exceeding the broader share market

ETF Securities today urged investors to consider the benefits of gold as 2019 shapes up to be a year of uncertainty.

“Investment markets displayed heightened volatility going into the close of 2018,” said ETF Securities Chief Executive, Kris Walesby. “We don’t expect the landscape to change, which should put gold front and centre as a safe refuge this year.”

Mr. Walesby pointed to US-China tensions and Brexit as key geopolitical risks. “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.”

Mr. Walesby said gold’s ability to appreciate in a bear market gives it the distinct quality of having a low or negative correlation with stocks and bonds. “One of the simplest and most cost-effective ways to access gold’s safe haven properties is through our flagship GOLD ETF,” added Mr. Walesby.

The fund is an Exchange Traded Product that gives investors a pure exposure to movements in gold prices in Australian dollars. Each unit carries an entitlement to the relevant amount of physical bullion, which is held in a separate trust in the London vault of the Fund’s custodian, HSBC.

In December, GOLD jumped up by 9.15% in contrast to a 0.37% decline in the ASX 200. Internationally, the S&P 500 was down 9.18% (or 5.90% in AUD) while the MSCI World dropped 7.71% (or 4.39% in AUD).

Mr. Walesby said, “The fund’s eye-catching monthly performance serves as a timely reminder that the precious metal plays a vital role in a sensibly diversified portfolio, especially when clouds gather over the global outlook.”

“Through our GOLD ETF, investors can have that diversification without any related transport, storage or insurance costs.”

At the end of last year, ETFS Physical Gold (ASX code: GOLD) secured a “recommended” rating from independent research firm Zenith Investment Partners. Earlier, Lonsec awarded it a ‘Highly Recommended’ rating, making it the first ETF Securities exchange-traded fund to receive the top rating.


Founded by Australian entrepreneur and philanthropist Graham Tuckwell in 2002, ETF Securities Limited developed the Physical Gold fund as the world’s first commodity Exchange Traded Product.

It represents a low-cost investment option, with a management fee of 0.4% p.a.