EGX to Make Gold Prices Available on its Website

Rami El-Dokany, Executive Chairman of The Egyptian Exchange (EGX), said that EGX to publish, on its website, instant recommended prices for the best buy/bid and sell/ask prices per gram for 999.9 purity gold in EGP. The data is provided by Gold Not Trading, a subsidiary of Evolve Holding, a company specialized in precious metals trading.

El-Dokany said, “This step comes in conjunction with launching Egypt first gold investment fund after obtaining necessary approvals from Financial Regulatory Authority.”

One of the main requirements for launching precious metals’ funds is the existence of locally and internationally accredited/certified refineries, as the fund purchases the output of those refineries. The gold investment fund make returns through changes in gold prices.

This fund is one of the newly introduced investment products to attract segment of investors who have turned to gold recently. High net worth investors preferred to funnel their money directly into gold bars, retail investors tended to direct their money to purchase gold pounds and jewelry (which makes them subject to additional costs), and some local investors turned to subscribe to international gold funds.

EGX Chairman said that establishing precious metals’ investment funds, especially gold, will increase transparency and market efficiency, as it will provide investors with an alternative to directly buy gold bars and products; a regulated gold investment product to invest their savings in. Also, the fund will diminish the exposure to additional costs and risks associated with directly buying gold products and retaining them, which maximizes return on the long term.

El-Dokany added that EGX, in full coordination with FRA, is working on developing a special trading system to enable purchasing and redeeming the fund policies through brokerage firms, which helps in creating an active secondary market for the fund policies.