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Victor
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Currency hedge means that you are somewhat protected from movements in currency as your investment is in gold not currency.

So this then becomes less speculative and concentrates more on your intended investment.

EDIT

The purpose of the GBSE ETF is aimed for investors living in Europe wanting to invest in USD Gold and not be effected by movements in the EUR/USD. The GBSE ETF aims to hedge against the effects of the currency movements in the EUR/USD and more closely track the USD Gold price. The 3 charts below demonstrate this over the past 5 years.

EUR Gold Price

USD Gold Price

GBSE Chart

So as is demonstrated the performance of the GBSE ETF closely matches the performance of the USD Gold price rather than the EUR Gold price, meaning someone in Europe can invest in the fund and get the appropriate similar performance as investing directly into the USD Gold without being affected by currency exchange when changing back to EUR.

This is by no way speculative as the OP suggests but is in fact serving the purpose as per the ETF details.

Currency hedge means that you are somewhat protected from movements in currency as your investment is in gold not currency.

So this then becomes less speculative and concentrates more on your intended investment.

Currency hedge means that you are somewhat protected from movements in currency as your investment is in gold not currency.

So this then becomes less speculative and concentrates more on your intended investment.

EDIT

The purpose of the GBSE ETF is aimed for investors living in Europe wanting to invest in USD Gold and not be effected by movements in the EUR/USD. The GBSE ETF aims to hedge against the effects of the currency movements in the EUR/USD and more closely track the USD Gold price. The 3 charts below demonstrate this over the past 5 years.

EUR Gold Price

USD Gold Price

GBSE Chart

So as is demonstrated the performance of the GBSE ETF closely matches the performance of the USD Gold price rather than the EUR Gold price, meaning someone in Europe can invest in the fund and get the appropriate similar performance as investing directly into the USD Gold without being affected by currency exchange when changing back to EUR.

This is by no way speculative as the OP suggests but is in fact serving the purpose as per the ETF details.

Source Link
Victor
  • 21k
  • 6
  • 47
  • 85

Currency hedge means that you are somewhat protected from movements in currency as your investment is in gold not currency.

So this then becomes less speculative and concentrates more on your intended investment.