HANetf head of research Tom Bailey tells Proactive's Stephen Gunnion the Royal Mint Responsibly Sourced Physical Gold ETC (exchange-traded commodity) has achieved a notable milestone in eco-friendly investment. Over 50% of the gold backing the ETC is now sourced from 100% recycled materials.
Bailey said this was the first gold ETC to incorporate recycled gold, appealing significantly to investors keen on sustainability and concerned about the environmental impact of gold mining. The introduction of recycled gold into the fund is a response to the growing demand for environmentally responsible investment options, as recycled gold is approximately 90% less carbon-intensive compared to mined gold.
The shift not only addresses the environmental concerns associated with gold mining's significant carbon footprint but also aligns with broader industry trends towards sustainability, evidenced by companies like Apple and Pandora transitioning towards the use of recycled gold. The move has been positively received, with the ETC experiencing strong asset under management (AUM) growth, indicating a clear preference among investors for more sustainable investment vehicles.
Bailed also discussed gold's appeal as a hedge against inflation and volatility in a diversified portfolio.