Excitement as Barclays Bank of Kenya Launches Its Gold ETF; What does it mean for the Market?

By Juma Fred / March 27, 2017



Current Gold Prices in Kenya

Barclays Bank of Kenya has officially launched the Gold Exchange Traded Fund in an event that was filled with joy, excitement and expectation from both market and economy analysts as well as prospect investors.

The Gold ETF product is the first to be listed in Kenya and the East Africa as a whole. It is also the first and the only product in Kenya coming out as the only investment vehicle traded on a stock exchange more or less like shares. This means that the investment allows customers to trade an invest in gold the same way they do with shares.

“We are happy to add a new segment of investors to benefit from the Gold Exchange Traded Fund from the Barclays Bank of Kenya,” Said Mr. Geoffrey Odundo, the Chief Executive Officer at the Nairobi Security Exchange.

Trading in gold has its primary listing on the Johannesburg Stock Exchange, and a secondary listing on the Botswana Stock Exchange, Nigeria Stock Exchange, Stock Exchange of Mauritius and Ghana Security Exchange and the one launched at the Nairobi Security Exchange is the world 7th largest with 400,000 gold bullions on the market.

The launch of the Gold Exchange Traded Fund by Barclays Bank of Kenya at the NSE means that investors can now securely invest in gold bullion with a benefit of minimal administrative fees. The trade will also allow investors to spread their risk. Diversify their portfolio and have an ease of purchase as well as exit.

According to the Jeremy Awori, the Chief Executive Officer at Barclays Bank of Kenya, the Gold ETF that was launched is Sharia compliant.

“This opens a way for Muslim investors to gain exposure to the precious metal through investing in the listed ETF,” said Mr. Awori, the CEO Barclays Bank of Kenya. “The gold is insured and cannot be lent out,” he added.

The new trading segment is set to boost trade in Kenya and beyond, and, in the process, boost the economy of the country.

According to some economic analysts, Gold has low to negative correlation, making it an excellent portfolio diversify. Historically, gold has always retained value. Gold has delivered inflation-beating returns, and, therefore, it is an excellent Kenya shilling hedge as well as a hedge against US Dollar depreciation.



About Juma Fred

Juma Fredrick is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it. You can reach him on: (020) 528 0222 or Email: [email protected]

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