The Financial Regulatory Authority approved the launch of the first fund to invest in gold in Egypt, a step that provides a new mechanism for investing in the precious metal in the country, which has recently witnessed a great demand for bullion and gold pounds as a safe haven from the depreciation of the pound.
Gold funds allow investing in the precious metal through the purchase of fund documents, which saves the cost of acquiring the metal itself, in addition to the possibility of buying in small amounts.
Ahmed Abu Al-Saad, managing director of Azimut Egypt, said that the prospectus for the subscription to the new investment fund documents will be made available within hours, and that the investment document will start from 10 pounds, and redemption is available in cash and in kind.
Abu Al-Saad added that the establishment of a fund to invest in gold represents the first tranche of a number of investment funds in precious metals that will be established with the aim of achieving appropriate returns that are in line with the investment policy of the various segments of society.
Abu Al-Saad referred to the advantages provided by the Gold Investment Fund, including the possibility of starting to invest in small amounts without a maximum limit, in addition to ensuring dealing in certified and guaranteed gold while saving part of the cost of obtaining gold, such as the cost of workmanship obtained by merchants, in addition to providing safekeeping services. Places approved and registered in the records of the General Authority for Financial Supervision, which preserves investors’ gold property from theft or damage.
The Egyptian Stock Exchange announced today the start of publishing spot gold prices on its website, in cooperation with the “Evolve Holding” company.
Rami El Dokani, Chairman of the Egyptian Stock Exchange, said that the establishment of investment funds in precious metals, especially gold, will control the market and increase its transparency. The precious metal without the need to buy gold from the markets and keep it, and also without paying additional costs such as “workmanship” and others, which works to reduce risks and maximize returns in the long term.
This article was originally published by Sky News.