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Investor’s Guide to the Exchange Traded Gold Market and Gold ETFs | The Royal Mint Physical Gold ETC (Part 5/5) | RMAU

Launched via HANetf’s unique white-label platform. The Royal Mint Physical Gold ETC (RMAU) is the first ever exchange-traded investment product from The Royal Mint. Unlike other Gold ETCs, gold in RMAU is held in the vault of The Royal Mint as opposed to with a commercial bank. This is the first and only time in history that a sovereign mint has vaulted the assets of a European gold ETC.

The Royal Mint

A History of Trust - The Royal Mint has an unbroken history of trust and authenticity through minting British coinage dating back over 1,100 years. Based in the Tower of London for over 500 years, by 1812 The Royal Mint moved out of the Tower to premises on London’s Tower Hill. In 1967 the building of a new Royal Mint began on its current site in South Wales, UK, to accommodate the minting of UK decimal coinage.

The Royal Mint is one of the world’s oldest organisations, shaping and leading the minting industry for over 1,100 years. As key players in the bullion market, The Royal Mint provides security and quality that customers would expect when choosing to invest in bullion.

Flexibility

As the foremost producer of bullion coins and bars in the UK, The Royal Mint is able to provide storage and physical delivery of gold in amounts smaller than the standard 400 ounce LBMA London ‘Good Delivery’ bar, ensuring a level playing field for large and smaller investors.

Vaulting and Security

The Royal Mint’s 35-acre site is home to a purpose-built precious metals storage facility, the VaultTM, which is the product of over 1,100 years of experience in safeguarding the nation’s coinage and precious metals. This secure location is trusted by royalty and governments to accommodate the production of UK circulating coins and coinage for an average of 60 countries every year. The Vault is built to Federal Standard 832 Class A and is guarded by state-of-the-art security systems, advanced protocols and highly-trained security staff, 24 hours a day, 7 days a week, 365 days a year. The Vault offers fully allocated and insured segregated storage of gold, silver and platinum coins and bars on behalf of clients around the world.

Counter-party Risk

The Royal Mint is a privately held company where Her Majesty’s Treasury is the sole shareholder. This means that you can be assured of The Royal Mint’s independence and impartiality while being confident of its integrity and reliability.

Cost Efficiency

There is a small cost to store physical gold in The Vault, see RMAU prospectus for details. It offers one of the lowest storage costs benefiting investors in The Royal Mint Physical Gold ETC.

Responsible Sourcing

The gold bars backing RMAU are responsibly sourced from the LBMA’s Responsible Gold Sourcing Programme on a best endeavour basis. Investors are assured that the gold is extracted in a manner that does not cause, support or benefit unlawful armed conflict or contribute to serious human rights abuses or breaches of humanitarian law.

Due Diligence Checklist

    RMAU
 Security Is the ETC 100% backed by physical gold? Yes
  Are there mechanisms in place to avoid physical gold being substituted for cash or securities within the product? Yes
  Is the physical gold London ‘Good Delivery’ standard and verifiable against the ‘Good Delivery’ database? Yes
  Is the gold stored in a vault that is highly secure and trusted? Yes
  Does the custodian segregate your gold from other assets they hold? Yes
  There should be no counter-party risk from the issuer, custodian or any other participant. Yes
  Vault location – secure and located away from areas of high risk of terrorism, conflict or military attack Yes
Transparency Are bullion holdings and identifiers published and updated daily? Yes
  Is it clear who is the issuer, trustee, custodian and liquidity providers? Yes
  Are there any potential conflicts of interests or are counter-parties independent of each other? Yes
  Are the fees easy to find and is it clear what their impact on the NAV is? Yes
  Is the issuer’s account audited by an assayer who is LBMA approved? Yes
  Does the audit process include a semi-annual vault inspection that compares the actual gold holdings to the records? Yes
Efficiency Is the ETC supported by a liquidity network of experienced APs and market makers? Yes
  Is there competition for business to help arbitrage and premiums in the market and ensure the price of the ETC consistently tracks the price of gold? Yes
  Are there multiple trading counter-parties to help lessen operational risk in the event of failure of an individual liquidity provider to participate in the market? Yes
Quality of the physical gold holdings Does the ETC hold only LBMA ‘Good Delivery’ bars? Yes
  Is the physical gold held with member firms of LBMA and LPMCL? Yes
  Is the physical gold held by a custodian in vaults that meet required standards for security and size? Yes
  Do the issuer and counter-parties supporting the ETC have strong, proven track records? Yes
  Do the issuer and counter-parties supporting the ETC have strong understanding of the mechanics of the gold market? Yes
  Do the counter-parties and service providers like custodians, trustees and registrars and liquidity providers have a proven track record in gold and be independent of each other? Yes

Product Information

 Exchange Bloomberg Ticker RIC ISIN SEDOL WKN Currency
London Stock Exchange  RMAU RMAU.L XS2115336336 BKT7175 A279KU  USD
London Stock Exchange  RMAP RMAP.L XS2115336336 BKT7197 A279KU  GBP
Borsa Italiana  RMAU RMAU.MI XS2115336336 BKT71B9 A279KU  EUR
Deutsche Boerse Xetra  RM8U RM8U.DE XS2115336336 BKT71G4 A279KU  EUR

 

Visit The Royal Mint Physical Gold ETC Fund Page to learn more about RMAU.

Download the full whitepaper "Investor's Guide to the Gold Market and Gold ETCs" here. 

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