Gold traders are almost always working to find ways to diversify their portfolio. The opening of a new platform for gold ETFs is generally welcome news for those who are trying to do this. There is good news out of Africa for investors who want to explore new opportunities.
Big News on Opening Day
Gold traders have one more option for where they will deal with exchange traded funds: the Nairobi Securities Exchange. The New Gold ETF traded 900 units on the first day. Those were worth Sh1.1 million. That first day, gold ETFs closed out at Sh1,250.
The market maker for the New Gold ETF is Barclays Financial Services Limited, a major force in the gold trading world. This enables the Nairobian platform to ensure that liquidity challenges are addressed as needed.
Conditions Apply
Buyers can use secondary markets to buy smaller amounts of the ETFs. In order to use the primary market and deal directly with the market maker, a 100-share minimum applies. This doesn’t knock any investors out of the arena. Instead, it simply has an impact on how investors handle their investments with the new platform.
Knowing the conditions and restrictions ahead of time can make investors who are just stepping into the Nairobi market a little more sure about how they need to approach it. Deciding which broker to use can have a big impact on how the investment works out. Investors who are jumping into a new exchange should carefully vet all potential brokers to ensure they are using one with whom they are comfortable working.
Positive Influence on the World Market
A new trading possibility for the gold market is great news. The opening of the Nairobi gold ETF exchange shows investors that there is stability in gold. Even with the recent news of gold trending downward between slight increases, this is welcome news. Gold investors should take note of the possibility and determine if and how it might fit into their investment portfolio. Ultimately, it is usually best for gold investors to have a diversified portfolio so they aren’t relying only on one investment.
