Thursday, 12th October 2006 (3140 views)

The first gold-based exchange traded fund (EFT) in Asia has commenced trading on the Singapore Exchange.

The EFT is backed by physical gold and based in US dollars. Known as StreetTRACKS Gold Shares and marketed by financial services company State Street, the fund will track gold prices and trade in the normal manner.

Investors in the ETF must purchase at least one lot of ten shares, with each share priced in line with the spot price for a tenth of an ounce of gold.

At the close of its first day of trading after 9,000 shares changed hands, the ETF was down by 30 cents to $57.30 - 0.5 per cent below its opening price of $57.60.

Last week, Hon Cheung, managing director of State Street Global Advisors, explained that the new fund will help boost the region's financial market.

 

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