Gold Price Volatility Risk

  • Specific Risks: As the core of the underlying portfolio, spot gold prices are subject to global macroeconomic factors (e.g., U.S. interest rate hikes, dollar strength), geopolitical tensions, and changes in central bank gold reserves. A sharp short-term drop in gold prices (e.g., >10% within a month) could reduce the value of physical gold holdings, lowering $ART’s NAV and secondary market price.

  • Mitigation Measures:

    • Maintain a diversified portfolio: Limit spot gold to 60%–70% of total underlying assets, with the remainder allocated to gold bonds (15%–20%) and mining funds (10%–15%) to offset pure gold price fluctuations.

    • Publish real-time gold price tracking: Integrate LBMA (London Bullion Market Association) real-time price feeds into the GoldFinger platform, allowing users to monitor asset value changes and adjust strategies promptly.

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