Gold Blog

Gold Exchange Traded Receipts (Gold ETR)

November 03, 2011

The Royal Canadian Mint is introducing a new gold investment product – Gold Exchange Traded Receipts (ETR). As stated by Royal Canadian Mint, “each ETR provides evidence of ownership in physical gold bullion held in the custody of the Mint at its facilities in Ottawa, Ontario.”

In contrast to Gold ETF (Exchange Traded Funds) a buyer of Gold ETR directly owns gold rather than a share in a vehicle that owns gold. Thereby the Gold ETRs will provide a more direct ownership of gold than Gold ETFs. Holders of ETRs will have the option to redeem their ETRs for physical gold, subject to certain restrictions.

There will be an annual fee of 0.35%, which effectively reduces the gold amount owned by the investor.

The Royal Canadian Mint is targeting an issue size of approximately CAD$ 250 million for its Gold ETR.

The Gold ETRs may not bet offered or sold in the US since they will not be registered under the US Securities Act.

More information on Gold ETR and vaulted gold.

Press release on Gold ETR.

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