Absa Capital a subsidiary of Barclays is in talks with the CMA and NSE about listing a gold-backed exchange traded fund, aiming to float in 2011.
The NewGold exchange-traded fund (ETF) is 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. In physical gold.
The value of NewGold has catapulted as gold prices hit record highs.
Absa Capital said talks with the Capital Markets Authority (CMA) and Nairobi Stock Exchange (NSE) were positive, but in their early stages.
This will be a secondary listing of the NewGold ETF on the NSE from the JSE in South Africa.
Some of the advantages of this listing is that you can now invest in physical gold without the headache associated with security and costs of storage.
Further the ETF will be denominated in Kenya Shilling thus giving exposure to another asset class which is favoured globally as a good investment alternative especially in times of a depression.
Similar plans are also being pursued for a listing in Botswana and Nigeria.
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