Gold ETCs | Security, Responsible Gold Bars & Physical Redemption
Security
is obviously paramount when it comes to owning gold and what better security
than a site trusted by royalty and governments? RMAU, the Royal Mint Physical
Gold ETC is the first gold ETF to store the physical LBMA ‘Good Delivery’ bars
in The Royal Mint’s purpose-built highly-secure vault in Wales .The Royal
Mint’s 35-acre site is home to a purpose-built precious metals storage
facility, which is the product of over 1,100 years of experience in
safeguarding 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 and offers fully allocated and insured segregated storage of gold,
silver and platinum coins and bars on behalf of clients around the world. With
RMAU, investors have the first opportunity to own a gold ETC that custodies gold outside the European banking and clearing system,
thereby removing a key source of systemic risk. Most other ETCs hold their gold
at commercial banks located in major financial centres that are arguably at
higher risk of terrorism and conflict and, as private institutions, have a
higher risk of default.
Gold
ETCs and Responsible Investing
RMAU
also provides a solution for investors seeking to incorporate ESG goals to
their portfolios: as the post-2012 gold bars backing RMAU are sourced on a
best-endeavour basis from the LBMA’s Responsible Gold Sourcing Programme. This
programme forces refiners to that ensures the gold has been extracted in a
manner that does not cause, facilitate or support human rights abuses,
terrorism or money-laundering. Other ETCs may hold pre-2012 gold that is of uncertain
origin or includes gold sourced in conflict zones.
RMAU
also offers greater flexibility and additional features for investors when
buying and selling gold. Some investors prefer smaller denominations and each
RMAU certificate entitles the holder to 1/100 troy ounce of gold, vs a typical
gold ETC that offers 1/10 troy ounce. This helps lowers the barriers to gold
investing, creating a level playing field between large and small investors and
enables detailed fine tuning of allocations.
Physical
redemption with a gold ETC
When
investors seek to redeem, they can benefit from a new and unique featured
offered by RMAU, tied intimately to its history. Established by King Alfred the
Great in 886 AD, The Royal Mint is one of the 10 oldest companies in the world
and has more than 1,000 years of expertise in producing coinage – a capability
unmatched in any other institution or ETC sponsor. This means when investors
choose to sell RMAU they can redeem their units for physical gold bullion bars,
cash or uniquely small denomination gold coinage. Not all gold ETCs
offer physical redemption and those that do may require a nominated account to
store the gold. With RMAU, large investors can have gold delivered to the site
of their choosing while smaller investor can, if they choose, have physical
gold bars or coins shipped to their house by The Royal Mint.
As
geo-political uncertainties roil markets, gold ETCs will continue to have an
important role to play for most portfolios. However, modern investors require
modern approaches and we believe that when it comes to gold, the most modern
approach may be offered from one of the world’s oldest institutions. Sometimes
you can’t beat experience.
When you
trade gold ETFs, your capital is at risk.
About RMAU
Exchange |
BB CODE |
RIC |
ISIN |
SEDOL |
CCY |
London
Stock Exchange
|
RMAU
LN
|
RMAU.L
|
XS2115336336
|
BKT7175
|
USD
|
London
Stock Exchange |
RMAP
LN
|
RMAP.L
|
XS2115336336
|
BKT7197
|
GBP
|
Xetra/Deutsche
Börse
|
RMAU
GY
|
RMAU.DE
|
XS2115336336
|
BKT71G4
|
EUR
|
Visit the RMAU product page here.