AZ-Gold Fund achieves 38% return increase since launch: Evolve Investment

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Egypt - Sameh Eltorgoman, Founder and CEO of Evolve Investment Holding, has announced that the AZ-Gold Fund has seen a 38% increase in returns on investment certificates since its inception.

Speaking with Daily News Egypt, Eltorgoman revealed that the fund has processed transactions totalling approximately 215 kilograms of gold and has attracted around 100,000 clients since last year.

The Sabayek Fund, established earlier this year through a partnership between Evolve and Beltone Securities Holding—a subsidiary of Beltone Holding—has experienced a surge in demand and subscriptions from various institutions and companies.

Eltorgoman also mentioned that the Financial Supervisory Authority is in the final stages of approving the launch of a third gold investment fund, created in collaboration with Al-Ahly Financial Investment Management, a company under the National Bank of Egypt. He anticipates the fund’s procedures will be finalized by the latter half of May.

He forecasts an uptick in the demand for gold investment funds, citing the metal’s role as a stable investment vehicle amid global economic volatility, which underscores its value as a hedge and investment asset.

Eltorgoman noted that while India, Turkey, and other developing nations are becoming key players in gold demand, gold investment funds are tapping into markets that have lost their former gold market strength. The substantial rise in gold prices has provided investors with lucrative selling opportunities.

Contrary to traditional beliefs, Eltorgoman stated that the US dollar’s value or interest rates are no longer the primary influencers of gold prices. The driving forces have shifted towards China, India, and the Middle East in terms of market and demand.

Despite a stable dollar value, the investment influx in China has been a significant factor propelling gold prices upward. Additionally, ongoing conflicts in the Middle East and political tensions between the USA and China have elevated gold’s status as a critical investment instrument.

“International reports suggest that gold’s performance in 2024 will surpass its achievements from the previous year,” Eltorgoman remarked.

He recommends incorporating gold into a diversified investment portfolio, suggesting an allocation of 5-20%, which aligns with global standards.

Eltorgoman disclosed that a study is being conducted to establish a silver investment fund, driven by strong demand and its affordability compared to gold. This initiative is part of a broader plan to introduce a variety of funds.

Highlighting the importance of diversification for the growth of investment funds in precious metals, Eltorgoman indicated that the company, in partnership with government entities, is devising a strategy to be unveiled later this year. This plan will include the introduction of a new fund, improved tax regulations for such businesses, and the provision of diverse financial products to enrich the market.