NSE IDENTIFIES GOLD AS VIABLE INVESTMENT OPTION
The Nigerian Stock Exchange has identified gold as a viable option in the current investment landscape. In presenting some of the instruments available to the investing public the Exchange partnered the ABSA Securities Nigeria to host a webinar. With the theme, ‘Using Alternative Investments Classes to Navigate Uncertain Times’, the webinar delved into the value of gold as a viable investment option and the ease of access; the NewGold Equity Traded Fund provides for investors who are ready to take advantage of the opportunity.
The Head, Trading Business Division, NSE, Mr. Jude Chiemeka, said, “As a multi-asset class Exchange hub, we recognise opportunities in the alternative investment asset space for the Nigerian Capital Market and are working assiduously with stakeholders to provide more insights into these instruments. “Historically, gold – which is categorised under the commodities segment of alternative investment classes – has been recognised as a safe haven asset used to provide stability to portfolios in times of market uncertainty.”
He further expressed his delight over the partnership with ABSA and the opportunity to demystify investing in gold from a fundamental and trading perspective. “Suffice to say that investors looking for an instrument that offers safety and liquidity should begin to look more closely at gold and the NewGold ETF. On its part, the NSE continues to provide avenue for engagement on its various products and services to enhance investors’ knowledge and deepen capital market activity even in these challenging times,” Chiemeka further stated.
Shedding more light on the opportunities, Head, Exchange Traded Products Business, ABSA Regional Operations, Mr. Michael Mgawaba, explained that gold could also be used for risk management and delivering impressive results. He said, “What distinguishes gold is its performance during crises? It has been known to have a negative correlation with economic crisis, which means that in an economic downturn, when other investment classes are going down, gold tends to go up.” It was further highlighted that investing in gold had been made easier than ever with the NewGold ETF listed on the Exchange. Speaking to the modalities of investing in this product, Managing Director, ABSA Securities Nigeria, Mr. Akinkunmi Majaro, stated, “An investment in the NewGold ETF is simply an investment in gold, but in electronic form.