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Perth Mint Physical Gold ETF debuts as first ETF with sovereign-backed gold

Topics [ AAAU ETF ]

The Perth Mint, Australia’s largest precious metals refining, minting and depository enterprise, has announced the launch of the Perth Mint Physical Gold ETF (NYSE: Arca: AAAU) on the New York Stock Exchange (NYSE).

Unique in the marketplace, AAAU is the first gold exchange-traded fund (ETF) that is backed by pure gold where that physical gold is guaranteed by a sovereign entity and offers shares that are redeemable for physical gold.

AAAU shares are backed by physical gold with a purity of at least 99.5% and secured within The Perth Mint’s network of central bank grade vaults in Western Australia. The Perth Mint may, on rare occasions, store the gold in other highly secure vaults. All the gold held on behalf of AAAU is guaranteed by the Government of Western Australia.

“With our one of a kind government guarantee and shares that are redeemable for physical gold of unquestionable quality, AAAU stands out in the ETF space,” said Richard Hayes, The Perth Mint’s Chief Executive Officer.

Mr Hayes said he believed investors would have greater confidence given the gold underlying the fund, held by The Perth Mint, was guaranteed by the Government of Western Australia. Additionally the gold is stored in one of the most secure networks of central bank grade vaults in the southern hemisphere.

“AAAU is a truly unique offering for investors as it adds a new layer to hard asset investing in the United States,” he said.

A key feature of AAAU is that investors may, at any time, exchange their shares for delivery of physical gold. Shareholders may select from an extensive suite of premium bullion bars and coins available from The Perth Mint, which is also one of the largest suppliers of gold coins to the US market.

As the refiner and manufacturer of precious metals products, The Perth Mint offers investors delivery of gold to their door.

Furthermore, the fund will pay all its expenses in gold ounces, minimizing potential tracking errors in the gold price.

AAAU combines a contemporary yet solid investment option in an asset that has held its purchasing power across centuries of economic and geopolitical upheaval.

“In an increasingly uncertain and turbulent world, the case for gold remains compelling,” said Mr. Hayes. “Investing in gold through AAAU provides investors with an alternative means away from the traditional commercial financial institutions typically located in London and New York and also serves as a potential hedge against inflation, currency risk and stock market volatility.”

Investors can learn more about AAAU and access its holding list specifying all physical gold segregated and secured for AAAU investors at www.aaauetf.com

Australian and other non-U.S. investors can access AAAU through their usual stockbroker with an international share trading account that can hold shares listed on the NYSE.

Established almost 120 years ago, The Perth Mint is renowned as a fully integrated producer of premium precious metals. The Bank of New York Mellon (BNYM) has been appointed as the fund’s trustee and Exchange Traded Concepts as its administrative sponsor.

This material must be preceded or accompanied by a prospectus.

Before investing you should carefully consider the Perth Mint Physical Gold ETF (“Trust”) investment objectives, risks, charges and expenses. Read the prospectus or summary prospectus carefully before investing.

The Fund is not a mutual fund or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and is not subject to regulation thereunder. The value of your shares fluctuates based upon the price of the gold held by the Trust. Fluctuations in the price of gold could materially adversely affect your investment in the shares. Investors should be advised that there is no assurance that gold will maintain its long-term value in terms of U.S. dollar value in the future. In the event that the price of gold declines, the value of an investment in the shares is expected to decline proportionately.

Trust shares may trade at Net Asset Value or at a price that is above or below Net Asset Value.  Any discount or premium in the trading price relative to the Net Asset Value per share may widen as a result of the different trading hours of NYSE Arca and other exchanges.  Substantial sales of gold by central banks, governmental agencies and multi-lateral institutions could adversely affect an investment in the shares.  Because the Trust invests only in gold, an investment in the Trust may be more volatile than an investment in a more broadly diversified portfolio.  The lack of an active trading market for the shares may result in losses on your investment at the time of disposition of your shares.

The request for redemption of shares for gold is subject to a number of risks including but not limited to the potential for the price of gold to decline during the time between the submission of the request and delivery. Delivery may take a considerable amount of time depending on your location. The Trust may suspend redemptions of baskets by authorized participants and Gold Corporation may suspend or reject the exchange of shares for physical gold, which could affect the market price of the shares.  The withdrawal of an authorized participant and substantial redemptions by authorized participants may affect the liquidity of the shares.

Gold owned by the Trust may be subject to loss, damage, theft or restriction on access. Although the Trust does not insure gold held by the Custodian, the Custodian’s obligations in relation to gold owned by the Trust and held in safekeeping by the Custodian are subject to the Government Guarantee in the event the Gold is lost, damaged, or stolen.

Market Price: The current price at which shares are bought and sold. Market returns are based upon the last trade price.

NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day at 4:00PM.

Marketing Agent: Foreside Fund Services, LLC

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