The Royal Canadian Mint has launched a series of Exchange Traded Receipts (ETR) under the Mint’s new Canadian Gold Reserves programme. The ETRs represent an interesting alternative to existing gold ETCs/ETFs, with each ETR providing evidence of direct ownership in physical gold bullion held in the custody of the Mint at its facilities in Ottawa, Ontario.
Royal Canadian Mint offers alternative to gold ETFs
“We believe that this new programme will build on our reputation and continued success as a world-class custodian of precious metals,” said Ian E. Bennett, President and CEO of the Royal Canadian Mint. “With the introduction of the Canadian Gold Reserves ETR programme we hope that investors will see this as a convenient, efficient and secure method for investing in and owning physical gold.”
Unlike other gold investment products, the purchaser of an ETR owns the actual gold rather than a unit or share in an entity that owns the gold. The net proceeds of the offering will be used to purchase gold on behalf of the initial purchasers of ETRs at the London pm fix price on the closing date of the offering.
ETR holders will be entitled to redeem their ETRs for physical gold products in the form of 99.99 per cent pure gold bars or coins, or for cash based on the future gold price or market price of the ETRs.
The initial offering of ETRs is targeting an issue size of approximately CAD$250 million. The issue price per ETR will be CAD$20.00 or the USD equivalent and the Per ETR Entitlement to Gold will be determined on the Closing Date and will be reduced daily by an annual service fee of 0.35 per cent.
Subject to the satisfaction of certain conditions, the ETRs will be listed on the Toronto Stock Exchange and commence trading on the Closing Date. ETRs will be listed in both Canadian and U.S. dollars and may be traded in either currency.
Europe domiciled LSE-listed Gold ETPs:
iShares Physical Gold ETC
Source Physical Gold ETC
DB Physical Gold GBP Hedged ETC
ETFS Gold Bullion Securities ETC
iShares S&P Commodity Producers Gold