Gold has long been a widely recognised investment choice among the\nIndonesian public. In addition to being relatively easy to understand,\ngold is frequently used as an instrument to preserve asset value,\nparticularly amidst economic uncertainty. Now, gold-based investment can\nalso be conducted through the capital market with the introduction of\nGold Exchange Traded Funds (ETFs).<\/p>\n
This product allows investors to gain exposure to gold price\nmovements through trading mechanisms on the Indonesia Stock Exchange\n(IDX), without the need to purchase or store physical gold directly.\nGlobally, Gold ETFs are not a new product and have long been traded on\nvarious world exchanges as an alternative gold-based investment.<\/p>\n
Its presence in Indonesia expands the public\u2019s investment options by\ncombining the characteristics of gold investment with the ease of\ntransactions in the capital market.<\/p>\n
Unlike digital gold buying and selling services, Gold ETFs are mutual\nfunds whose participation units are traded on the Indonesia Stock\nExchange (IDX), meaning investors can buy and sell them through\nsecurities companies during exchange trading hours. To invest in Gold\nETFs, investors simply need to have a securities account with a\nbrokerage firm.<\/p>\n
Simply put, funds collected from investors are managed by an\nInvestment Manager and placed primarily in gold-based assets in\naccordance with applicable regulations. Due to these characteristics,\nthe value movement of Gold ETFs generally follows the movement of gold\nprices. When gold prices rise, the value of Gold ETFs has the potential\nto increase, and conversely, when gold prices fall, the value may also\ndecrease.<\/p>\n
For investors, Gold ETFs offer convenience as there is no need to\npersonally possess or store physical gold. Consequently, investors do\nnot need to worry about storage requirements or the risk of losing\nphysical gold, while still being able to obtain exposure to gold price\nmovements through products traded on the Exchange.<\/p>\n
Edwin Hartanto, Acting Head of Business Development Division 2 at\nIDX, stated that the presence of Gold ETFs is part of the IDX\u2019s efforts\nto provide increasingly diverse investment options while supporting the\ndeepening of the Indonesian capital market. \u201cThrough Gold ETFs, the\npublic can invest in gold in a practical manner through the capital\nmarket. We hope more people realise that investment options on the\nExchange are not limited to stocks, but also include various other\ninstruments that can be tailored to individual needs.\u201d<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/investing-in-gold-without-physical-storage-understanding-gold-etfs-1788457855", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }