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NewGold ETF (NSE: GLD)

Nigel Firth
Nigel Frith trader
Updated 5 May 2022

What is NewGold ETF

NewGold ETF is when gold exchange-traded products are traded in exchange-traded funds (ETFs), closed-end funds (CEFs) and exchange-traded notes (ETNs) that are used to own gold as an investment.

Gold exchange-traded products are traded on the major stock exchanges and also on the Nairobi Stock Exchange (NSE) in Kenya.

The funds pay their annual expenses such as storage, insurance, and management fees to the sponsor by selling a small amount of gold; therefore, the amount of gold in each share will gradually decline over time.

The annual fee charged by State Street Corporation as sponsor of SPDR Gold Shares, the largest gold-backed fund in the world, is 0.40% of the assets in the fund.

In some countries, gold ETFs represent a way to avoid the sales tax or the Value-added tax which would apply to physical gold coins and gold bars.

The history of NewGold ETF started in 2011 when the South African group Absa Capital held talks with Kenya’s capital market regulator and Nairobi’s stock exchange (NSE) about listing a gold-backed exchange traded fund.

The NewGold ETF was originally listed in South Africa where it is the largest ETF and invests directly in gold, with around 52.5 tonnes of gold bullion in assets.

Barclays NewGold ETF is a cross-listing of the $1.4bn NewGold ETF that listed on the Johannesburg Stock Exchange in 2004 and is also listed in five other African markets including Kenya.

NewGold ETF’s equity stocks are for sale online on the Nairobi Securities Exchange (NSE) under the stock symbol GLD.

NewGold ETF has its headquarters in Nairobi.

NewGold ETF forms part of the Investment Services Industry and the Financials Sector.

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NewGold ETF

New Gold ETF

NewGold ETF Stock Performance

The current price for NewGold ETF stocks is 1,931.000 Kenyan Shilling (KES). The company has a total market capitalisation of 772M KES with no P/E ratio of any earnings per share indicted. A total of 400,000 shares are outstanding.

With an increase of earnings per share and consistent profits over a period, investors who want to buy or sell NewGold ETF stocks can be assured of lucrative dividends and earnings in times to come.

According to an analysis on the live chart of NewGold ETF, analysts forecast further improved performance with market share growing as trading volumes increase.

Highlights of NewGold ETF in 2021

NewGold ETF started the year with a share price of 1,975.000 KES, but has since lost 2.28% in value on its price valuation, ranking 33rd on the NSE where year-to-date performance is concerned.

NewGold ETF is currently the 52nd most-traded stock on the NSE and it has experienced a total trading volume of more than 35,300 shares, which were finalized in five deals and were valued at a total of 64.6 million KES over three months, with an average of 560 shares in each trading session.

The highest volume shares traded on one single day was 34,600.

New Gold ETF - How To Trade

How to buy NewGold ETF stocks – Step by Step

The stock market is one of the most attractive financial markets that sees millions of retail investors and traders' participation daily. To buy, sell or trade NewGold ETF stocks, traders and investors can follow a few simple steps:

  1. Find the share that you want to buy, in this case, “GLD”.
  2. Select a forex broker that offers access to the Nairobi Securities Exchange (NSE).
  3. Review the broker's trading conditions, fees, deposit and withdrawal methods, trading platform, customer support, regulation, and other components to ensure that they are aligned with your trading plan.
  4. Open a live trading account with the broker by completing the online application form and providing the necessary documentation to verify the trading account.
  5. You are now ready to make your first share purchase through the broker.
  6. You can further start to build and diversify your portfolio by buying more shares.

FAQs

The Nairobi Securities Exchange (NSE), was established in 1954 as Nairobi Stock Exchange, and is the leading stock exchange in East Africa. It offers world class trading facilities for both its local and foreign investors looking to gain exposure to the country’s rising economy.

The exchange is based in Nairobi, the capital of Kenya, which has one of the fastest-growing economies in Sub-Saharan Africa. The NSE operates under the jurisdiction of the Capital Markets Authority of Kenya. It is governed by a board of 11 directors.

In 2008, the NSE launched the NSE All-Share Index (NASI). The NASI is a market capitalization-weighted index comprising all listed securities, effectively, the benchmark index for the Kenyan stock market.

In 2011, in conjunction with FTSE International, the NSE introduced the FTSE NSE Kenya 15 and FTSE NSE Kenya 25 indices which are designed for the creation of index tracking funds and derivative products. The NSE 25 Share Index measures the top 25 companies.

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Nigel Firth
Nigel Frith trader
Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.