SYDNEY, Dec 10 (Reuters) - Exchange-traded commodities funds manager ETF Securities, which holds about $13 billion in gold-backed securities, may offer investors a hedged gold security in Australian dollars to offset the dampening effect of further U.S. dollar weakness on local bullion prices.
Exchange-traded funds have emerged in recent years, promoting themselves as simple ways for investors to gain direct exposure to gold and have largely stayed clear of hedging.
While the U.S. dollar gold price XAU= has gained as much as 53 percent this year, in Australian dollars XAUAUD=R, gold has risen only 33 percent.
“All the things that pushed gold up this year, including the weakening U.S. dollar are still there,” ETF Securities Director Nigel Phelan told Reuters.
The security could be offered early next year and would be aimed at competing with investments in Australian gold mining stocks, which tend to rise in step with U.S. dollar-denominated gold rather than local bullion prices, Phelan said.
“If we can provide a vehicle to hedge out that risk, remove that currency exposure, then you can get the pure gold play,” Phelan said. (Editing by Clarence Fernandez)