Xavier Blaise – Financial Adviser – OIBME Asia Ltd

23 January 2024

The following article is from Xavier Blaise, a financial adviser for OIBME Asia Ltd who is based in Kuala Lumpur, Malaysia.

Xavier prepares articles on a regular basis on financial subjects that are topical for the expatriate investor, which are published on his ‘Finance Enthusiasts’ WhatsApp group.  

Dear Finance Enthusiasts,

I remember my childhood days when my grandma would gleam with joy, adorned in her gold jewellery – a cherished gift from my granddad.

For them, a generation that had just emerged from the shadows of war, gold was more than just an accessory. It was a beacon of security during uncertain times.

Fast forward to today, and we find ourselves amidst talks of Western economies potentially shifting towards an “economy of war”. With concerns about currency depreciation and an increasing demand for gold by central banks, it feels like history is repeating itself. The economic challenges of 2023 – market volatility, rising interest rates, and geopolitical tensions – have led various experts to predict a significant surge in gold prices in the coming years. Estimates range from a modest 10% to a whopping 125%! Factors such as the looming threat of recession, increased demand for gold in Europe, and geopolitical factors are fuelling this trend.

Gold, as we know, has traditionally been a safe-haven asset, especially during times of economic uncertainty, geopolitical tensions, and market volatility. It’s seen as a reliable store of value, often sought by investors looking to safeguard their wealth during challenging periods. It also serves as a means of diversification, providing a hedge against potential losses in other asset classes like stocks, bonds, or real estate.

But did you know that you can own physical gold without the hassle of storage or transport?

Physical Gold ETCs (Exchange Traded Commodities) offer investors exposure to gold prices, providing an easily accessible and liquid investment option compared to purchasing and storing physical gold. Renowned ETCs like iShares Physical Gold, Wisdom Tree Physical Gold, and Invesco are all backed by their holdings in physical gold bullion, which is held in storage and audited regularly.

Here are some benefits of Physical Gold ETCs compared to purchasing gold bullion:

• Convenience and Accessibility: Physical Gold ETCs provide exposure to gold prices through exchange-traded funds (ETFs), offering an easily accessible and liquid investment option.

• Diversification: ETCs allow investors to diversify their portfolios without the need to physically own and store gold bars or coins.

• Lower Transaction Costs: Buying and selling Physical Gold ETCs typically involve lower transaction costs compared to acquiring and storing physical gold.

• Liquidity: ETCs can be bought and sold on the stock exchange like shares, providing immediate liquidity.

• Professional Management: ETCs are managed by financial professionals who handle the logistics of acquiring, storing, and securing physical gold.

• Fractional Ownership: ETCs allow investors to own fractional shares of gold, making it more accessible to those with smaller budgets.

• No Storage Concerns: Investors in Physical Gold ETCs do not need to worry about secure storage facilities for their gold holdings.

• Transparency: ETCs often provide transparency into their holdings, allowing investors to track the performance of the underlying physical gold.

Feel free to reach out if you’d like to know more about this investment product.

And remember, always be mindful of your investment goals and risk tolerance. Happy investing! 

Xavier Blaise is a financial adviser with OIBME Asia Ltd.

If you would like to obtain further information on how to invest directly into physical Gold ETC’s, please click on the More Information button at the bottom of this page or email Xavier direct at xavier.blaise@oibme.com 

The above article is for information purposes only. The views of the author or any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy, sell or hold any specific investment or to adopt a particular investment strategy.

Please speak to Ethical Offshore Investors or your personal financial adviser BEFORE you make any investment decision based on the information contained within this article.

At Ethical Offshore Investments, we can access the physical Gold ETC’s (plus other gold related investments) on the various offshore investment platforms we offer. We do not charge any additional entry and/or exit fees to purchase these funds for our clients.

Speak with Ethical Offshore Investments to learn how you can save on your investment costs……. resulting in more of the investment growth staying in your pocket.

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