The Perth Mint launches physical gold ETF
The Perth Mint, Australia’s largest precious metals refining, minting and depository enterprise, has launched the Perth Mint Physical Gold ETF (NYSE: Arca: AAAU) on the New York Stock Exchange (NYSE).
The firm writes that the AAAU is the first gold ETF that is backed by pure gold, where that physical gold is guaranteed by a sovereign entity and offers shares that can be exchanged for physical gold. The Bank of New York Mellon (BNYM) has been appointed as the fund’s trustee and Exchange Traded Concepts as its administrative sponsor.
Established almost 120 years ago, The Perth Mint is a fully integrated producer of premium precious metals.
AAAU shares are backed by physical gold with a purity of at least 99.5 per cent and secured within The Perth Mint’s network of central bank grade vaults in Western Australia. The Perth Mint may, on rare occasions, store the gold in other highly secure vaults. All the gold held on behalf of AAAU is guaranteed by the Government of Western Australia.
“With our one-of-a-kind government guarantee and shares that can be exchanged for physical gold of unquestionable quality, AAAU stands out in the ETF space,” says Richard Hayes, The Perth Mint’s Chief Executive Officer.
“We believe investors will have greater confidence with the knowledge that their wealth is physically stored in one of the most secure central bank grade vaults in the southern hemisphere. AAAU is a truly unique offering for investors as it adds a new layer to hard asset investing in the United States.”
A key feature of AAAU is that investors may, at any time, exchange their shares for delivery of physical gold. Shareholders may select from an extensive suite of premium bullion bars and coins available from The Perth Mint, which is also one of the largest suppliers of gold coins to the US market.
As the refiner and manufacturer of precious metals products, The Perth Mint offers investors delivery of gold to their door. Furthermore, the fund will pay all its expenses in gold ounces, minimising potential tracking errors in the gold price.
The firm writes that AAAU combines a contemporary yet solid investment option in an asset that has held its purchasing power across centuries of economic and geopolitical upheaval.
“In an increasingly uncertain and turbulent world, the case for gold remains compelling,” says Hayes. “Investing in gold through AAAU provides investors with an alternative means away from the traditional commercial financial institutions typically located in London and New York and also serves as a potential hedge against inflation, currency risk and stock market volatility.”