GOLD a performer for troubled times

Jan 14, 2019

GOLD a performer for troubled times

• Mounting uncertainty in 2019 calls for portfolio diversification and a keen focus on reducing losses

• A standout monthly rise by ETFS Physical Gold (ASX code: GOLD) - up more than 9%, and 11% for Q4, far exceeding the broader share market

ETF Securities today urged investors to consider the benefits of gold as 2019 shapes up to be a year of uncertainty.

“Investment markets displayed heightened volatility going into the close of 2018,” said ETF Securities Chief Executive, Kris Walesby. “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.”

Mr Walesby said gold’s ability to appreciate in a bear market gives it the distinct quality of having a low or negative correlation with stocks and bonds. “One of the simplest and most cost-effective ways to access gold’s safe haven properties is through our flagship GOLD ETF,” added Mr Walesby.

The fund is an Exchange Traded Product that gives investors a pure exposure to movements in gold prices in Australian 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% in contrast to a 0.37% decline in the ASX 200. Internationally, the S&P 500 was down 9.18% (or 5.90% in AUD) while the MSCI World dropped 7.71% (or 4.39% in AUD).

Mr Walesby said, “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.”

“Through our GOLD ETF, investors can have that diversification without any related transport, storage or insurance costs.”

At the end of last year, ETFS Physical Gold (ASX code: GOLD) secured a “recommended” rating from independent research firm Zenith Investment Partners. Earlier, Lonsec awarded it a ‘Highly Recommended’ rating, making it the first ETF Securities exchange traded fund to receive the top rating.

About ETF GOLD:

Founded by Australian entrepreneur and philanthropist Graham Tuckwell in 2002, ETF Securities Limited developed the Physical Gold fund as the world’s first commodity Exchange Traded Product.

It represents a low cost investment option, with a management fee of 0.4% p.a.

Media inquiries:

Ian Pemberton / Adrian Thirsk Sara Rigby

P&L Corporate Communications ETF Securities

61-2 9231 5411 61-2-8311-3478

DISCLAIMER

This document is communicated by ETFS Management (AUS) Limited (“ETFS”) (Australian Financial Services Licence Number 466778). This document may not be reproduced, distributed or published by any recipient for any purpose. Under no circumstances is this document to be used or considered as an offer to sell, or a solicitation of an offer to buy, any securities, investments or other financial instruments and any investments should only be made on the basis of the relevant product disclosure statement which should be considered by any potential investor including any risks identified therein.

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Investments in any product issued by ETFS are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither ETFS, ETFS Capital Limited nor any other member of the ETFS Capital Group guarantees the performance of any products issued by ETFS or the repayment of capital or any particular rate of return therefrom.

The value or return of an investment will fluctuate and investor may lose some or all of their investment. Past performance is not an indication of future performance.

The Lonsec Rating (assigned August 2018) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold ETF Securities product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.

For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.lonsecresearch.com.au/research-solutions/our-ratings