The Royal Mint’s gold ETC to launch this week
The Royal Mint is to launch its first ETC this week, in partnership with HANetf. The Royal Mint Physical Gold Securities ETC (RMAU) will list on London Stock Exchange and is designed to offer investors an effective way to access the gold market as it tracks the physical price of gold.
This is the first listed financial product to be backed by The Royal Mint and the first physically gold backed ETC to be launched in partnership with a European Sovereign Mint.
The Royal Mint is the world’s largest export mint, creating coins, medals, gifts and investment opportunities to the UK and overseas countries. With 1,100 years of heritage and expertise, The Royal Mint writes that it is a world leader in the design and craftsmanship of precious metals – and the move into the gold backed ETC market is the latest in a series of initiatives to diversify the company’s portfolio in line with evolving consumer needs.
The ETC will be 100 per cent backed by London Bullion Market Association (LBMA) Good Delivery bars, the physical gold associated with RMAU will be held in The Royal Mint’s purpose-built vault – one of the UK’s most secure sites.
The Royal Mint writes that gold is often regarded as a safe haven investment in times of market stress and investors will now have the option to own an ETC that custodies the gold outside of the financial system. Most other gold ETCs custody their gold at commercial banks so the RMAU ETC offers an attractive alternative to investors looking to diversify their custody arrangements.
RMAU ETC securities can be redeemed in exchange for physical gold bars and coins, with delivery and storage provided by The Royal Mint.
This ETC allocates gold that has been sourced on a best endeavour basis from the LBMA’s Responsible Sourcing program. The Total Expense ratio (TER) for the RMAU ETC is 0.22 per cent per annum.
The Royal Mint says that the launch of the ETC is designed to complement the Royal Mint’s existing range of precious metals products including gold, silver and platinum in the form of physical bars and coins, as well as its digital ‘Signature’ range available online.
Anne Jessopp, CEO of the Royal Mint, says: “This launch is a significant milestone for The Royal Mint as we look to the future and diversify our business for the 21st century. 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.
“Our precious metals business has gone from strength to strength since its launch five years ago, and the launch of this gold backed ETC further builds on our existing range of Mint precious metal products.”
Jatin Patel, Head of Wealth Management at The Royal Mint says: “Gold continues to be recognised as the world’s leading means of trading and storing wealth. As one of the UK’s most trusted organisations, we are excited to be able to offer investors yet another way of gaining exposure to gold whilst having the confidence that it is safely stored in our vault.”