NewGold . JSE: GLD

Background of NewGold
NewGold Gold Bullion Debentures are securities backed by gold bullion, listed on and traded through the Johannesburg Stock Exchange (JSE). Each NewGold debenture is initially valued at 1/100 of one fine troy ounce of gold.
NewGold Debentures are issued by NewGold Issuer Limited, a public company incorporated in the Republic of South Africa.
Proceeds of the issue of NewGold Debentures are utilised to acquire the gold bullion, in the form of 400 oz London Good Delivery Bars, and held in the safe custody of the NewGold Custodian, Rand Refinery Limited.
NewGold Shares Growth Driver
The Absa NewGold Gold Bullion Debentures is the first product of its type to be listed in South Africa, and only the third in the world. NewGold is listed on the Johannesburg Stock Exchange (JSE) in the Exchange Traded Funds sector.
NewGold Issuer Ltd is a special purpose company registered in South Africa. The company is set up to issue Gold Bullion Securities. Gold Bullion Securities are designed to track the spot gold price less fees.
GBS provides investors the opportunity of investing in the gold bullion market without the necessity of taking physical delivery of gold.
Developed in associated with the World Gold Council, NewGold presents a new asset class for South African investors and a unique investment opportunity.
As such, it is a low risk investment, an excellent safe haven preserver of wealth, and an important component of any well diversified investment portfolio. Added to this, NewGold is affordable and accessible to most South Africans.
In fact, diversification of investment risk Research shows that an optimal investment portfolio should contain between 5% and 30% of gold, for different investors’ risk profiles.
NewGold Gold Bullion Debentures are the most efficient, cost effective and secure way for South African investors to invest in gold.
NewGold Gold Bullion Debentures are backed 100% by the physical gold bullion held by the NewGold Custodian, Rand Refinery Limited.
NewGold Gold Bullion Debentures represent the most cost effective to invest in gold, as the management fees charged by NewGold Issuer are only 0.4% per annum.
They are convenient and easily accessible, as they are listed on the Johannesburg Stock Exchange. Absa Corporate and Merchant Bank has been appointed a market maker, providing the other side to every trade. In comparison, investing in physical gold bullion is difficult and expensive.
NewGold continuously tracks the gold spot price and enables investors to invest in a listed instrument (structured as a debenture) in which each security is equivalent to approximately 1/100th ounces of gold and is fully backed by holdings of gold bullion with the NewGold Custodian, ICBC Standard Bank.
NewGold Investor Tip
The NewGold ETF issued by Absa Capital, is the most successful South African ETF measured by size, according data from a recent analysis.
First listed on the JSE in November 2004, it now has 136 million shares in issue, with a market capitalisation of over R17 billion. The next biggest ETF is the Satrix 40 with a market cap of R7,1 billion.
Gold is a safe haven investment. As one of only a few financial assets not matched by liability, it can provide ‘insurance’ against extreme movements on the value of traditional asset classes that can happen in unsettled times.
There are several examples of this fact throughout history.
For example, during the 1987 stock market crash, gold proved itself the most effective way of raising cash to meet immediate needs.
In the first quarter of 2025, flight to gold by Japanese investors occurred as they awaited the withdrawal of government guarantees on bank deposits.
Worldwide, the gold market is very liquid and deep. While the gold market is only some 13% of the size of the New York Stock Exchange by market capitalization, its turnover to market capitalization ratio is 3 to 4 times higher.
In addition, trades of up to five tonnes ($50 million approximately) have been executed without having any significant impact on price.
Given the foreign exchange control restrictions which prevent transactions in physical gold bullion in South Africa (except for registered jewellers and industrial users of gold), NewGold provides an opportunity for local investors to gain direct exposure to the gold bullion price.
Since its listing in late-2004, NewGold has provided outstanding performance. To 29th February 2012, the NewGold ETF has provided an annual return of 24,14%, since inception, or a cumulative return of 387,8%.
This performance is often ignored, as many Performance Surveys do not recognise NewGold as an ETF, because of its debenture structure.
Gold ETFs are commodity funds that trade like stocks and have become a very popular form of investment. Although they are made up of assets that are backed by gold, investors don’t actually own the physical commodity.
Instead, they own small quantities of gold-related assets, providing more diversity in their portfolio. Generally, these instruments allow investors to gain exposure to gold via smaller investment positions than what’s achievable through physical investment and futures contracts.
Gold ETFs offer some of the same defensive-asset-class traits as bonds, and many investors use them to hedge against economic and political disruptions, as well as currency debasement.
Gold tends to rise when the dollar is weak, so if your investment portfolio holds assets that have risk exposure to the dollar’s downside, purchasing a gold ETFmay help you hedge that exposure. Conversely, selling a gold ETF can act as a hedge if your portfolio has exposure to the upside.
A gold ETF is a commodity exchange-traded fund that can be used to hedge gold commodity risk or gain exposure to the fluctuations of gold itself.
If an investor has increased risk on his portfolio assets when the price of gold rises, owning a gold ETF can help reduce risk in that position.
NewGold has exactly the same ring fenced trust structure as any Collective Investment Scheme and also has the benefit of being JSE listed and regulated.
Accordingly, it should always be considered when the performance of investment products freely available to retail investors are considered.
Gold, together with other commodities, is always worthy of consideration in long-term investment portfolios because it adds diversification and some alleviation of risk, through reduction in overall cyclical volatility of a portfolio.
If an investor has increased risk on his portfolio assets when the price of gold rises, owning a gold ETF can help reduce risk in that position.
NewGold has exactly the same ring fenced trust structure as any Collective Investment Scheme and also has the benefit of being JSE listed and regulated.
Accordingly, it should always be considered when the performance of investment products freely available to retail investors are considered.
Gold, together with other commodities, is always worthy of consideration in long-term investment portfolios because it adds diversification and some alleviation of risk, through reduction in overall cyclical volatility of a portfolio.
With gold and other mining shares, often suffering from safety, labour, regulatory and other State intervention issues in South Africa, direct exposure to commodities through Exchange Traded Products, such as NewGold is becoming the preferred point of entry, particularly for institutional investors.
NewGold’s listing on the JSE means that it can be purchased or sold at any time during the JSE trading day, thereby enabling local investors to take advantage of intra-day changes in the gold price on international markets. Absa Capital provides market making facilities to ensure that there is always liquidity in the product.
As a rand denominated investment on the JSE, investment in NewGold does not impact on the foreign exchange allowances of individual and corporate investors. For institutional investors, prudential guidelines for foreign investments still apply.
NewGold complies with Shari’ah principles of ethical investment under Islamic Law.
NewGold trades on the Johannesburg Stock Exchange (JSE) where investors can buy shares under the stock symbol – GLD.
The listing has shown impressive growth despite continued market fluctuations, which is indicative of the strength of gold as an investment product and the high value which it brings to any investment portfolio.
The listing’s strong performance is set to deliver solid dividends and a strong share price for investors who choose to purchase shares today, securing a solid buy-in on the JSE in 2021 and in the future.
Bytes Technology Group Major Shareholders
Absa Corporate and Merchant Bank
Sector
ETFs
Industry
Commodities
Sub industry
Precious Metals
How to buy NewGold Shares
NewGold : How to buy NewGold Shares Online
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Frequently Asked Questions
What is Newgold?
Newgold (NewGold Gold Bullion Debentures) are securities backed by gold bullion, listed on and traded through the Johannesburg Stock Exchange (JSE). Each NewGold debenture is initially valued at 1/100 of one fine troy ounce of gold.
Can you buy Newgold shares online?
The website of SA Shares makes it easy for you to buy JSE listed shares online.
When was Newgold listed on the JSE?
November 2004
Is Newgold a good share to buy?
Gold has been proven as a safe haven for investment.
When was Newgold founded?
January 1980