JOHANNESBURG (Commodity Online): After the South African government allowed individuals to buy gold bars following the lifting of ban, the country is scoring in another front also — gold ETFs.

The country has only one ETF in the local market, that is NewGold ETF which had surpassed the R1billion mark in June.

And within two months’ time the gold exchange-traded fund has crossed R10-billion mark.

Absa Capital’s NewGold, which was launched in 2004,  had lured R10-billion in assets following the listing of an additional 7.6-million NewGold debentures on Friday.

Analysts said the poor economic outlook and general market instability are making investors the world over seek out gold. Gold is often less volatile and can be better performing than investing in gold shares.

NewGold invests directly in gold and tracks the gold price.
The ETF notched up in excess of R1-billion of assets under management only on June 2.

Absa Capital was, meanwhile, planning to launch of a series of commodity-linked products, one of which would be an ETF linked to platinum.
Source: miningweekly.com

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