The Royal Mint lists Gold backed ETC on London Stock Exchange

February 17, 2020

• The Royal Mint Physical Gold Securities ETC (RMAU) will list on London Stock Exchange this week
• The first physically gold backed Exchange Traded Commodity (ETC) launched by a European Sovereign Mint and The Royal Mint’s first listed financial product
• Competitively priced [1] at 0.22% per annum
• Custody of gold held at The Royal Mint’s highly-secure, purpose-built vault in Wales

The Royal Mint Physical Gold Securities ETC (RMAU) will list on London Stock Exchange this week. The ETC 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 has partnered with specialist white label ETF issuer, HANetf to issue, manage and distribute the RMAU ETC.

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 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.

100% 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. 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, a unique feature of the RMAU ETC.

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 annum.

The launch of the ETC complements 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, 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. 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 commented: “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.”

The Royal Mint Physical Gold ETC (RMAU) product details:

The Royal Mint has partnered with white label specialist, ETF issuer, HANetf to issue, manage and distribute the RMAU ETC.  The founders of HANetf have extensive knowledge of gold investment products and were co-founders and owners of the first company that invented gold exchange traded funds (ETFs) and other commodity ETFs.

Nik Bienkowski , Co-Founder of HANetf, the specialist white label ETF platform, added: “We are very excited to have been able to work with a brand as prestigious as that of The Royal Mint on the launch of its first ETC.

“Gold ETCs have always been a popular way for investors to gain exposure to the gold price.  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. We believe the RMAU ETC will appeal to investors looking to diversify their custody arrangements and make use of the physical redemption service.”

When you trade ETCs, your capital is at risk.  For professional investors only. This content is issued by HANetf Limited, an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority.

[1] Compared to top 5 largest Gold ETCs from Wisdom Tree, Invesco, iShares, DWS and ZKB as of 11/02/2020 which range from 0.19%-0.40% per annum

[2] Gold price is $1567.89 per ounce as of 11/02/2020. Source: Bloomberg