Arnold Dublin-Green, Chief Investment Officer at Cordros Securities, believes Gold ETFs are a smarter and safer choice for Nigerian gold investors, especially in light of the country’s ongoing foreign exchange instability.
Speaking on Nairametrics’ YouTube show Everyday Money Matters, in an episode titled “Why Gold Might Be the Smartest Investment Nigerians Can Make in 2025,” Dublin-Green highlighted the challenges facing local investors looking to hedge against inflation and currency devaluation.
According to him, there are few instruments that give Nigerian investors direct access to gold, especially when considering how currency devaluation can erode returns.
Watch the full video below:
He pointed to the NewGold Exchange Traded Fund (ETF) as a more practical and suitable option for Nigerians looking to invest in gold.
“The companies behind these ETFs price them in line with the value of physical gold,” he explained. “They’re structured in affordable units, which makes them both accessible and appealing to the average Nigerian investor.”
The NewGold Exchange Traded Fund, priced in naira, tracks the market price of physical gold, helping investors avoid the exchange rate fluctuations involved in buying and selling XAU/USD.
Unlike traditional gold investments, which are often based on price representations or derivatives, this ETF is backed by physical gold bullion, offering a safer approach for long-term, passive investing.
Portfolio diversification
According to Arnold Dublin-Green, Nigerian investors should prioritize portfolio diversification to protect themselves against exchange rate volatility, which can impact the value of their investments.
“Investors must find ways to diversify their exposure to currency risk,” he said.
“There’s nothing more heartbreaking than hearing Nigerian investors lament how the naira’s depreciation has reduced the value of their assets, making them worth far less than when they were first purchased.”
Dublin-Green explained that while many investors only react when there’s a sharp spike in currency volatility, they often overlook the gradual and persistent decline in the naira, often tied closely to falling oil prices.
He described the naira as an “oil story,” noting that, like the currencies of many OPEC member countries, it tends to lose value when oil prices drop.
Offering practical advice, he urged investors to build more resilient portfolios:
“Diversify. Look for short-term money market instruments that can generate returns. Invest in quality dividend-paying stocks. Add some gold to your portfolio. Choose stable, inflation-resistant assets that can help you weather economic shocks.”
XAU/USD vs. NewGold ETF (GLD):
Gold has been on a steady upward trend in 2025, gaining 23.5% year-to-date so far and currently trading just above $3,200 per ounce.
- After breaking the $2,800 resistance level in January, it continued to climb through February.
- The rally extended into March and April, driven by tariff trade tensions and a weaker U.S. dollar.
- However, after peaking above $3,400 on May 6, gold pulled back slightly, losing over 5%. As of May 16, it is stabilizing above the $3,200 mark.
While spot gold (XAU/USD) has pulled back recently, the NewGold Exchange Traded Fund (ETF), priced in naira, has outperformed with a year-to-date return of 40.5% so far in 2025.
As of May 16, 2025, the ETF has surged from a year-open price of N29,002 to N59,000.