Gold ETF surges amid growing uncertainty

By Reporter

— 1 minute read

15 January 2019

The ETF Securities GOLD ETF jumped 9.15 per cent in December as the S&P 500 fell 9.18 per cent and the ASX 200 declined.

Investment markets displayed heightened volatility going into the close of 2018, ETF Securities chief executive Kris Walesby said.

“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.”

The ETF Securities GOLD ETF gives investors exposure to the movements in gold prices in Aussie 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 per cent in contrast to a 0.37 per cent decline in the ASX 200.

Internationally, the S&P 500 was down 9.18 per cent (or 5.90 per cent in AUD) while the MSCI World dropped 7.71 per cent (or 4.39 per cent in AUD).

“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,” Mr Walesby said.