Arnold Dublin-Inexperienced, Chief Funding Officer at Cordros Securities, believes Gold ETFs are a better and safer alternative for Nigerian gold traders, particularly in mild of the nation’s ongoing international change instability.
Talking on Nairametrics’ YouTube present On a regular basis Cash Issues, in an episode titled “Why Gold Would possibly Be the Smartest Funding Nigerians Can Make in 2025,” Dublin-Inexperienced highlighted the challenges going through native traders seeking to hedge in opposition to inflation and foreign money devaluation.
In accordance with him, there are few devices that give Nigerian traders direct entry to gold, particularly when contemplating how foreign money devaluation can erode returns.
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He pointed to the NewGold Trade Traded Fund (ETF) as a extra sensible and appropriate possibility for Nigerians seeking to put money into gold.
“The businesses behind these ETFs value them in step with the worth of bodily gold,” he defined. “They’re structured in inexpensive models, which makes them each accessible and interesting to the typical Nigerian investor.”
The NewGold Trade Traded Fund, priced in naira, tracks the market value of bodily gold, serving to traders keep away from the change charge fluctuations concerned in shopping for and promoting XAU/USD.
Not like conventional gold investments, which are sometimes based mostly on value representations or derivatives, this ETF is backed by bodily gold bullion, providing a safer strategy for long-term, passive investing.
Portfolio diversification
In accordance with Arnold Dublin-Inexperienced, Nigerian traders ought to prioritize portfolio diversification to guard themselves in opposition to change charge volatility, which might affect the worth of their investments.
“Traders should discover methods to diversify their publicity to foreign money danger,” he mentioned.
“There’s nothing extra heartbreaking than listening to Nigerian traders lament how the naira’s depreciation has diminished the worth of their property, making them price far lower than after they had been first bought.”
Dublin-Inexperienced defined that whereas many traders solely react when there’s a pointy spike in foreign money volatility, they typically overlook the gradual and chronic decline within the naira, typically tied carefully to falling oil costs.
He described the naira as an “oil story,” noting that, just like the currencies of many OPEC member international locations, it tends to lose worth when oil costs drop.
Providing sensible recommendation, he urged traders to construct extra resilient portfolios:
“Diversify. Search for short-term cash market devices that may generate returns. Spend money on high quality dividend-paying shares. Add some gold to your portfolio. Select steady, inflation-resistant property that may aid you climate financial shocks.”
XAU/USD vs. NewGold ETF (GLD):
Gold has been on a gradual upward pattern in 2025, gaining 23.5% year-to-date to date and at present buying and selling simply above $3,200 per ounce.
- After breaking the $2,800 resistance degree in January, it continued to climb by means of February.
- The rally prolonged into March and April, pushed by tariff commerce tensions and a weaker U.S. greenback.
- Nonetheless, after peaking above $3,400 on Might 6, gold pulled again barely, shedding over 5%. As of Might 16, it’s stabilizing above the $3,200 mark.
Whereas spot gold (XAU/USD) has pulled again lately, the NewGold Trade Traded Fund (ETF), priced in naira, has outperformed with a year-to-date return of 40.5% to date in 2025.
As of Might 16, 2025, the ETF has surged from a year-open value of N29,002 to N59,000.
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