NSE Highlights Gold as Viable Option in the Current Investment Landscape


Goddy Egene

The Nigerian Stock Exchange (NSE) has partnered ABSA Securities Nigeria to host a webinar that focused on using alternative investments classes to navigate uncertain times in Lagos. The webinar delved into the value of gold as a viable investment option and the ease of access the NewGold Equity Traded Fund (ETF) provides for investors who are ready to take advantage of the opportunity.

Speaking during the webinar, 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 insight 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.”

Shedding more light on the opportunities gold has to offer, Head, Exchange Traded Products (ETP) Business, ABSA Regional Operations, Mr. Michael Mgawaba, explained that gold is not only defensive, but it can also be used for risk management and delivers impressive results. “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 is now easier than ever with the NewGold ETF that is listed on the NSE.

Speaking to the modalities of investing in this product, Managing Director, ABSA Securities Nigeria, Mr. Akinkunmi Majaro said: “An investment in the NewGold ETF is simply an investment in gold, but in electronic form. It trades like any other security with no buying or selling restrictions and has returned 29 per cent year-to-date, 31.75 per cent in 2019 and over 131 per cent since its listing in 2011.”