Global X celebrates the 20th anniversary of the World’s First Gold ETP
Global X ETFs (Global X) is celebrating the 20 year anniversary since the launch of the world’s first gold exchange traded product (ETP) on the Australian stock exchange, Global X Physical Gold (ASX: GOLD), innovating the way global and Australian investors can incorporate gold into their investment portfolio.
Evan Metcalf (CEO), Global X CEO, Australia, said GOLD was launched on 28 March 2003 opening up the precious metal asset class to more investors. Since then, Global X has continued to grow and innovate in precious metals and beyond, with the goal of providing accessibility and useful investment solutions to meet clients’ needs.
“Demand for gold is rising as economic uncertainty and financial instability sweep through global financial markets on the back of global bank failures we have seen this month. Taking advantage of all time high gold prices in AUD, local investors are understandably taking some profits, however we continue to see gold’s longstanding position in a portfolio due to its safe haven status. Globally, with interest rates sharply higher from one year ago, high inflation and the increasing odds of a global recession, investors are piling into gold,” Metcalf said.
“Gold has been among the best-performing major asset classes this year, up about 13.03 per cent as at 24 March 2023 in Australian dollar terms, compared to a rise of 6.13 per cent for the S&P 500 and -1.13 per cent for the S&P/ASX 200.
“Gold prices often flourish during times of uncertainty when investors seek out safe havens in financial markets. The recent bank collapses has increased further the interest in gold,” Metcalf said.
An investment into the Global X Physical Gold ETF is an indirect investment in gold bullion in the form of segregated, individually identified and allocated bars held in a vault. It avoids the need for investors to personally store the bullion.
Blair Beaton, Group Executive, Listings at ASX said, “Investor appetite and the market for ETFs has gone from strength to strength since GOLD debuted 20 years ago. We look forward to continuing to work with Global X and the entire managed fund industry to grow the ETF market, providing opportunities for investors.”
“GOLD gave birth to the global gold exchange traded fund market and offers investors a simple but effective investment in the precious metal. In a single trade, GOLD delivers low-cost access to physical gold via the stock exchange and avoids the need for investors to personally store the bullion,” Metcalf said.
Gold has long been viewed as stable, core portfolio holding due to being a store of value around the world. Many investors use gold as a hedge against inflation, which is why Global X has seen a heightened interest in its GOLD ETF after Australian inflation hit 7.8% in the December 2022 quarter.
“As GOLD is priced in Australian dollars, it has gained more than the gold price which is priced in US dollars. While gold has gained around 2.05 per cent over the year to 24 March, it is up by around 155.39 per cent in Australian dollar terms, boosted by the depreciation of the local currency. The GOLD ETF is up around 14.73 per cent .”
“As a reliable store of value, we believe gold is an important alternative to be included in investors’ portfolio.” Metcalf concluded.