Egypt launches 1st gold investment fund

The new fund will invest in 24-carat gold bars and issue investment certificates starting from EGP 10 that will be on sale at post offices.

The fund allows investors to redeem their certificates in cash or grams of gold.

The new fund is managed by Evolve Azimut, a joint venture between the two private companies Evolve Holding and Azimut Egypt.

"The establishment of investment funds for precious metals will help control the market, increase transparency, and ration demand for gold ingots and coins," Chairman of the Egyptian Exchange (EGX) Rami El-Dokany said earlier.

He noted that these funds will provide investors with an alternative to investing in gold without resorting to buying and holding gold from the market and incurring processing costs, which will mitigate risks and maximize returns in the long run.

Gold funds are investment vehicles which often take the form of mutual funds or exchange-traded funds (ETFs). ETFs can be bought directly on the stock exchange.

The Egyptian gold market is stabilizing following weeks of fluctuation due to a surge in demand amid uncertainty about the Egyptian pound’s exchange rate.

On Monday, the per-gram purchase prices of 24-carat, 21-carat, and 18-carat gold edged lower to EGP 2,657, EGP 2,325, and EGP 1,993, respectively, compared to Sunday's levels.