Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
For those who feel they need a little more security than buying gold through an exchange traded fund, the Royal Canadian Mint is offering exchange traded receipts backed by physical gold bullion held in the mint’s facilities in Ottawa, Ontario.
The Canadian mint, which announced this product on Friday, says that ETRs are different than other gold investment products since the purchaser of an ETR owns the actual gold rather than a unit or share in an entity that owns the gold.
When someone buys an ETR, the money will be used to purchase gold at the London pm fix price on the closing date of the offering. The Royal Canadian Mint says that holders of the ETRS, subject to certain conditions, will be able to redeem them 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 size of the ETR service is set at $250 million, and the annual service fee for ETR holders is 0.35%. The exchange traded receipts will be listed on the Toronto Stock Exchange.
Gold ETS have grown spectacularly in the last 10 years. Mineweb reports that gold ETFs account for over 40% of gold investments worldwide, and total gold holdings in ETFs are greater than physical gold held in Switzerland’s central bank.
MINING.com reported that some have been seeking out more security and taken to buying physical gold and silver since they do not trust banks or other financial institutions.
Comments
Luv
I would trust this before I would trust GLD ETF!