The ETFS Physical Gold (GOLD) is increasingly likely to join the likes of the
Vanguard Australian Shares Index ETF (VAS) and the iShares Core S&P/ASX 200 ETF (IOZ)
as one of the few Australian ETFs to hold AU$1bn in assets.
As of the end of July 2019, the Australian Securities Exchange (ASX) had 245 ETPs listed with $53bn in assets making it very rare for an Aussie ETF to reach this milestone.
The increase in demand is a result of the recent volatility driven by the ongoing trade tensions between the US and China, according to Kris Walesby, chief executive at ETF Securities.
GOLD’s assets have risen 24.3% since the beginning of 2019 as the figure reached $998m as at 30 August.
The price of gold breached the US$1,500/oz in recent weeks, which is an increase of 18% for the year. WisdomTree forecasts this figure to climb even further to $1,550 by Q2 2020.
Walesby said in a statement: “Gold comes into its own in times of uncertainty, and with fears of a global recession now dominating market sentiment, we would expect the price still has some way to run.
“The erosion in bond yields is a good indicator of the level of nervousness globally. The lack of any resolution to the U.S. China trade wars, unrest in Hong Kong, the cloud over Brexit, and signs of a slowing global economy mean investors are looking to shield their portfolios from volatility.”