The effects of rising US interest rates on the economy are becoming apparent, according to Zhao Shande, senior strategist at a Hong Kong-listed company (Value Partners ETF firm), who said in a recent interview.
Since the beginning of the year, the US Federal Reserve has been gradually raising interest rates, which will lead to a downturn in the US economy and, eventually, strengthen gold prices.
He believes that the price of an ounce of gold will reach US$2,300 in the future, and he advises investors to expand their gold holdings rather than remove money from US equities and comparable assets.
According to Zhao Shande, genuine gold ETFs are the best option for investors looking to invest in gold since they are extremely transparent and allow for free buying and selling, allowing investors to diversify their holdings.
As per Zhao, the performance of the physical gold ETF closely resembles the price of gold and it matches actual gold. The performance of gold mining companies is what drives the rise and fall of gold mining stock exchange-traded funds (ETFs), not the price of gold itself.
Zhao Shande stated that even though gold price performance is taken into account when discussing leveraged gold ETFs, losses are inevitable. In terms of long-term returns, the returns are significantly lower than those of actual gold ETFs.
The only gold exchange-traded fund available on the market that holds physical gold in Hong Kong is Value Partners Group’s Value Gold ETF (3081). In addition, Value Partners Group keeps about three tons of actual gold bars, each valued at NT$400,000, in the precious metal storage warehouse.
According to Zhao Shande, the company has gold in Hong Kong Precious Metals Storage, which can let it use physical gold before tokenizing it and improve the legitimacy and dependability of its gold ETF.
He went on to say he is thinking about releasing exchange-traded funds (ETFs) tied to digital assets and tokens. He thinks the growth of virtual assets will be encouraged by the orderly management and maturing bitcoin market.
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