Royal Mint Physical Gold ETC passported to Netherlands, Luxembourg, and Finland

Apr 14th, 2020 | By | Category: Commodities

The Royal Mint Physical Gold ETC (RMAU LN) has been registered for distribution in the Netherlands, Luxembourg, and Finland.

Royal Mint Physical Gold ETC passported to Netherlands, Luxembourg, and Finland

The Royal Mint Physical Gold ETC is now available for distribution in seven European countries.

The move expands the ETC’s sales footprint to seven European countries which also include Ireland, the United Kingdom, Italy, and Germany.

Listed on the London Stock Exchange in February 2020, the ETC was brought to market through a partnership between European white-label ETF issuer HANetf and the United Kingdom’s The Royal Mint.

It is the first exchange-traded product to be issued by a government-owned mint in Europe.

The ETC provides exposure to changes in the spot price of gold and is fully backed by physical gold bars complying with LBMA Good Delivery criteria and sourced in line with the association’s Responsible Sourcing Programme.

This means that the underlying gold is from conflict-free sources and from producers maintaining higher standards of corporate governance and environmental and sustainability practices.

Moreover, unlike the majority of gold ETCs on the market, RMAU’s underlying physical gold is stored at The Royal Mint’s purpose-built vault near Cardiff, Wales. This means investors now have the ability to diversify their custody arrangements by owning an ETC that stores the precious metal outside of the mainstream financial system.

The link with the Royal Mint also means that securities in the ETC can be redeemed, subject to fees, for physical gold bars and coins, with delivery and storage provided by The Royal Mint.

The ETC is available to trade on LSE in US dollars (RMAU LN) and pound sterling (RMAP LN) as well as on Xetra in euros (RM8U GY).

Gold ETCs have been benefitting from record inflows and strong market performance in recent weeks, driven by investors’ search for safe-haven assets amid ongoing market volatility caused by the COVID-19 coronavirus pandemic.

The Royal Mint Physical Gold ETC has benefitted from this trend with its assets under management up roughly 50% since launch at $230m. Investors are likely finding the ETC attractive due to its competitive fee of 0.22% as well as the ETC’s commitment to responsibly sourced gold.

Jatin Patel, Head of Wealth Management at The Royal Mint, commented “Gold has always been a core portfolio holding and recent events have spurred investors’ interest in this ‘safe haven’ asset.

“With the addition of the Netherlands, Luxembourg, and Finland as markets for distribution for RMAU, more investors will be able to buy and own physical gold securely and responsibly in an ETC backed by a sovereign mint. The passporting is in response to significant demand from investors from these key European countries.”

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