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Gold ETF likely to enter Dubai in fourth quarter
The World Gold Council (WGC) is targeting a fourth-quarter launch of its Dubai-listed exchange traded fund (ETF), rounding out its suite of gold ETFs on major markets after a listing in Hong Kong yesterday.
- Reuters
- Published: 00:04 August 1, 2008
Hong Kong: The World Gold Council (WGC) is targeting a fourth-quarter launch of its Dubai-listed exchange traded fund (ETF), rounding out its suite of gold ETFs on major markets after a listing in Hong Kong yesterday.
James Burton, chief executive of the industry body, said that after the Dubai listing, which would be that exchange's first ever ETF, the WGC may take a pause. "After Dubai, I would say there are no gaps [in availability of gold ETFs in major markets]," he said in an interview in Hong Kong, where he was launching the SPDR Gold Trust.
"I had hoped or planned that we would have a consolidation year, where we just went and marketed, instead of this frantic listing that we've been doing. We've been doing it non-stop since mid-2002. There's some logic in giving it a rest for a year and then spend a bit of time marketing it."
The ETFs are backed by physical gold, which gives investors exposure to the gold price without needing to take delivery. That adds to demand for the precious metal, which has attracted safe-haven investments during the past year of turbulence on global financial markets.
Burton said the outlook for global new supply of gold was "at best flat", with estimates ranging from 2 per cent growth to 5 per cent decline each year, while Central Banks were selling less than they were entitled to, further supporting prices.
He said there were no definitive plans for more ETFs in 2009, although other potential markets remained for the future.
"If you look around and think what's out there? You would look at Korea, you'd look at Brazil, Argentina, those are potentials."
He also said the Sharia-compliant Dubai ETF could be marketed more widely in the Islamic world.
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