Kian Smith FZE is set to list and trade over N21bn worth of 1kg London Bullion Market Association-certified gold bars on the floor of the Lagos Commodities and Futures Exchange.
The Managing Director/Chief Executive Officer of Kian Smith, Nere Emiko, in a statement on Tuesday, said the gold bars had been certified by the LBMA for listing and trading on the LCFE.
Emiko said the initial offer to be listed would be 100kg of gold bars, valued at about N21bn.
She explained that the initial listing was designed to test the responsiveness of the Nigerian capital market to structured gold trading, adding that more tranches of gold contracts would subsequently be listed on the Commodities Exchange.
Emiko noted that investors would be able to invest in as little as 100g out of the 1kg gold bars, stressing that all risk management protocols had been fully considered.
She said, “The gold bars are all LBMA-certified; each bar is insured and stored in a secure vault managed by professional vault and collateral managers.”
Emiko stressed that the gold sector had continued to record an upward trajectory in valuation over time.
According to her, while an ounce of gold traded at $1,800 in 2000 and $3,200 in early 2024, it currently trades at $4,450.
She added that gold was forecast to hit between $5,000 and $6,000 per ounce this year.
“This is the right time for investors to participate and invest in the gold space,” she said.
The listing of Kian Smith FZE on the LCFE comes on the heels of the Eko Gold transaction.
Also speaking, the Managing Director and Chief Executive Officer of First City Monument Bank Limited, Yemisi Edun, said the latest transaction marked a new level of maturity for the Nigerian capital market.
Edun said the synergy between Kian Smith’s supply chain excellence, the LCFE’s trading floor and First City Monument Bank Limited as the receiving bank created a blueprint for the future of commodities trading.
“FCMB remains committed to being the gateway for investors seeking to diversify into structured high-growth solid mineral contracts,” she said.
The Managing Director of WCM Capital, Patrick Ajayi, spoke on the importance of including gold in investment portfolios for stability.
He explained that the gold spot contracts were available to both institutional and individual investors.
Ajayi said, “As the dealing member firm bringing Kian Smith to the market, it is important that investors understand the risk management protocols the instrument has gone through before listing on the Exchange.”
He added that each gold bar is sealed, with its quality and quantity assured.
“That is the added comfort of listing the gold on an Exchange, because investors can rely on the fact that all the necessary protocols have been taken into consideration,” Ajayi said.
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