Professional Investors Target Tokenised Gold Etfs As Price Of Precious Metal Decreases

(MENAFN- Investor Ideas) ), a leader in mining investing news and home of theExploring Mining Podcast, issues market commentary from ST0x Group.

Gold's recent price decrease has created a strong buying opportunity for 28% of institutional investors and wealth managers participating in global research* from ST0x, the onchain trading infrastructure for tokenised securities issued by S01 Issuer GmbH, under an EEA base prospectus approved by the FMA Liechtenstein.

A further 48% of the 200 institutional investors and wealth managers surveyed consider the price decrease as a moderate buying opportunity, seeing the precious metal as worth adding while expecting prices to remain range bound in the short term.

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One-fifth of respondents are taking a neutral or 'wait-and-see' position, holding current allocations and waiting for clear signs of a technical price bottom. Four per cent of respondents say gold's investment thesis has weakened, and they expect further downside toward previous support lines.

Given the current market environment and gold's valuation decrease, study participants plan to increase their gold allocations over the next six months. The biggest group (31%) will increase by between 3% and 4% while 23% will up allocations by 2% to 3%.

Around a fifth (19%) will increase by 4% to 5%; one in ten by 1% to 2%; 5% say by more than 5%; the same amount will increase allocations by up to 1% and 6% will maintain current levels.

When asked if they would consider using a tokenised gold ETF as a tactical vehicle to deploy capital rather than a traditional gold ETF, 23% of respondents say they would do so exclusively. Survey participants said the operational advantages including 24/7 trading, near-instant settlement make tokenised ETFs their preferred vehicle to capitalise on gold's priced decrease.

More than half (58%) will partially allocate to tokenised gold ETFs noting they would split the investment between traditional and tokenised gold ETFs to test liquidity and infrastructure, the research across North America, the UK, continental Europe, the Middle East and Asia Pacific found.

Around 15% of respondents would consider using a tokenised gold ETF and are actively auditing tokenised issuers for future allocations, but they currently prefer traditional ETFs.

Looking at expectations for the spot price of gold (per troy ounce) by end of December, more than half (53%) of professional investors surveyed say $4,201 to $4,600 (Moderate recovery toward the 200-day moving average), while 28% forecast $3,800 to $4,200 (consolidation at current levels).

Some 15% predict $4,601 to $5,000 (strong bullish rebound); 2% say above $5,000 (new historical highs driven by renewed market shocks); and a further 2% say below $3,800 (further deep correction).

The price of gold is currently around $4,180 per troy ounce.

About ST0x Group

ST0x Group builds onchain trading infrastructure for tokenised securities. The products are issued by S01 Issuer GmbH, Berlin, as unsecured debt securities under an EEA base prospectus approved by the FMA Liechtenstein. Investors should read the Base Prospectus and Final Terms before making an investment decision in order to fully understand the potential risks and rewards. Each product gives the holder a contractual right against the issuer to exchange it for the underlying security at the ratio set in the Final Terms. The Base Prospectus and Final Terms are available at Approval of the prospectus by the FMA should not be understood as an endorsement of the securities.

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