GOLD EX­CHANGE-TRADED FUNDS (ETFS)

Finweek English Edition - - INSIGHT: LOCAL -

mid-2000s as a means to drive gold de­mand, few i mag­ined just what an im­pact th­ese prod­ucts would have. more like it, have fa­cil­i­tated, en­cour­aged and re­sulted in an enor­mous and highly ef­fi­cient way to in­vest in phys­i­cal gold, some­thing that was quite dif­fi­cult to do pre­vi­ously. syn­ony­mously in­ter­change­able in the minds of in­vestors, and widely owned both in­sti­tu­tion­ally and by pri­vate in­vestors alike. gold in its right­ful and im­por­tant place as an in­sti­tu­tional in­vest­ment and as­set class, some­thing that has al­ways ex­isted

ini­tia­tive and few thought that

gold eq­uity busi­ness that they have. Gold its sta­tus in the minds of most gold in­vestors from the go-to gold in­vest­ment to merely a pe­riph­eral in­vest­ment. com­pa­nies demon­strated a hope­less in­abil­ity to turn a higher gold price into com­men­su­rately higher prof­its per share.

In ad­di­tion, be­cause they are more volatile (risky), in­vestors went to phys­i­cal gold in pref­er­ence. In my mind, the switch away from gold eq­ui­ties did not need to hap­pen and could have sus­tained a happy sym­bi­otic co-ex­is­tence if gold com­pa­nies made more money along the way.

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