Britain’s Royal Mint has launched an exchange-traded commodity (ETC) that will see a product by the body traded on a stock market for the first time in its 1,100 year history.
The mint said each ETC is equal to 1/100th of a troy ounce of gold at launch which is approximately $15 per ETC based on today’s prices. It will be priced at a total expense ratio of 0.22 per cent.
The mint said it will sell ETCs, debt securities backed by gold, storing the bullion in its own vault, based in Cardiff.
It said it expects the these ETCs will be sold on the London Stock Exchange later this week, as well as on markets in Italy and Germany “in early 2020”.
Gold exchange-traded products have become big business since the first was launched in the early 2000s.
‘Milestone for the Royal Mint’
They now hold almost 3,000 tonnes of gold worldwide, worth around $140bn at current prices, according to the World Gold Council.
The mint worked with HANetf, a specialist London-based boutique that helps build Exchange Traded Funds (ETFs), to develop this new product.
Royal Mint chief executive Anne Jessopp, said: “This launch is a significant milestone for The Royal Mint as we look to the future and diversify our business for the 21st century.”
She added: “Today we are building on our 1,100 years of heritage and reputation for trust and security to expand into new ventures with the launch of our first ever listed financial product, becoming the first Sovereign Mint in Europe to do so.”
HANetf co-founder Nik Bienkowski said: “The gold will be stored in The Royal Mint’s vault, one of the country’s most secure sites. The Royal Mint brand is synonymous with the security and reliability investors want to see from a gold ETC and makes it an attractive option for investors who are looking to hedge systemic risk.”