Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Everything is GOLD – ETF Securities cruises past $3 billion
The multi-year rally in gold prices has seen specialist Exchange Traded Fund provider, ETF Securities move beyond $3 billion in assets under management to start the new financial year. The group offers one of the only secure and unhedged gold bullion exposures in the country via its Physical Gold ETF (ASX:GOLD), which meant it saw inflows of $683 million thus far in 2020. The product now has over $2.1 billion in assets under management secured by gold bullion held in JP Morgan’s London vaults.
The group is uniquely positioned for growth through its combination of adviser friendly and hard to access asset classes, like gold and silver (ASX:ETPMAG), along with their new leveraged Nasdaq or ‘Ultra’ trading products.
Responding to the doubling of trading volumes in ETFs that has occurred due to the pandemic, CEO Kris Walesby suggested that “investors increasingly understand and see ETFs as a core investment tool for their portfolios”. Importantly advisers also see value via the “fast and broad exposure to diverse market opportunities” that they now offer.
With geopolitical risk heightened, money printing showing now signs of slowing and few assets classes offering any certainty of income, Walesby expects allocations to gold bullion will only continue to grow. “There is an increased awareness about the impact of gold in portfolios as it is viewed as a hedge against an equity market sell off and lauded for its lack of correlation to mainstream asset classes” he says.
