Gold investment services for U.S. individual investors, ETF investors aim to capture market – Nikkei
By Yoko Noge
June 27, 2010
Gold Bullion International investment services company (GBI is New York-based) was launched on June 25 for retail investors to buy bullion. In the U.S., sovereign inflation concerns (confidence in financial issues) have made investments in physical gold increasingly popular. GBI developed a system that one can easily trade bullion like stocks and bonds, and will expand to retail investors through financial advisors. Typically, individual investors seeking to invest money in gold use ETFs (exchange-traded fund) in many cases to buy “physical demand.” Purchases are expected remain strong, gold is said to be USD 600 billion total ETF (exchange-traded fund) and aims to capture individual investors to invest in the market.
The company’s chief executive officer (CEO), the former U.S. investment banking chief operating officer of Merrill Lynch (COO), Colbert Narcisse said a target customer will hold more than $250,000 dollars in investment accounts. Until now, gold investment has been limited to the wealthy with some of the costs and procedures of storage and insurance, and quality certification being cumbersome “to change the general investment products like mutual funds” (Narcisse CEO) said. Gold ETF investment is set to cost about the same from the company’s investor partners, London Bullion Market Association and the destination storage in New York was chosen for one of the storage systems. “Buy gold bars and 10 percent of the cost of personal, institutional investors 1% would suffice. We can offer to individual investors and institutional investors buy low-cost average,” he said.
The company was established last May in emerging companies. Arthur Levitt, former chairman to the SEC (U.S. Securities and Exchange Commission) and former congressman Gephardt have been appointed as Advisory Board members.
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