Perth Mint launches ETF

THE Perth Mint has launched the first exchange-rated fund with sovereign-backed gold in New York overnight.
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Staff reporter

Trading of the Perth Mint Physical Gold ETF (NYSE Arca: AAAU) started on Wednesday morning, US time.

AAAU is Australia's first gold ETF to be traded on the New York Stock Exchange and is the latest investment offering issued by The Perth Mint promoting the sale of gold produced by the Australian gold mining industry.

The launch of AAAU now provides a direct pathway for Australian-mined gold to be sold into the world's largest financial market.

"Given the nature and scale of The Perth Mint's operations, we were able to provide the physical infrastructure to develop AAAU," CEO Richard Hayes said.

"Bringing this world-leading gold product to market is the result of the collaborative efforts of several specialist parties."

The Bank of New York Mellon was appointed as the fund's trustee with the leading US-based investment advisory firm Exchange Traded Concepts as its administrative sponsor.

As the first ETF backed by physical gold which itself is guaranteed by a sovereign entity - the Government of Western Australia - each AAAU share represents ownership of 1/100th of an ounce of gold which is 100% secured by physical gold stored by The Perth Mint.

It gives investors a new, accessible and cost-effective way to invest in gold without the concern of storing it themselves.

Another key feature of AAAU is that shareholders may redeem their shares for physical gold at any time.

Shareholders may make their selection from the extensive range of premium bullion bars and coins offered by The Perth Mint and have it delivered to their door.

AAAU will also pay all its expenses in gold ounces, thereby minimising potential tracking errors to the gold price.

AAAU will also promote the potential investment benefits of gold, one of Australia's most valuable and important export commodities.

"Australian gold has an international reputation for purity and ethical sourcing, with investors integrally participating in the success of a great Australian story," Hayes said.

"In an increasingly uncertain and turbulent world, the case for gold remains compelling because it serves as a potential hedge against inflation, currency risk and stock market volatility."