The Perth Mint recently launched the Perth Mint Physical Gold ETF (NYSE Arca: AAAU), the first exchange-traded fund with sovereign-backed gold trading on the New York Stock Exchange (NYSE).
AAAU is guaranteed by the Government of Western Australia, with shares exchangeable for delivery of a wide range of gold products.
AAAU is Australia’s first gold ETF to be traded on the NYSE and is the latest investment offering issued by The Perth Mint promoting the sale of gold produced by the Australian gold mining industry. Committed to creating demand and developing markets for Australian precious metals, The Perth Mint’s 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. Bringing this world-leading gold product to market is the result of the collaborative efforts of several specialist parties,” said Richard Hayes, The Perth Mint’s Chief Executive Officer and the Gold Industry Group's Chairman.
As a global leader in investment management and services, the Bank of New York Mellon (BNYM) was appointed as the fund’s trustee with the leading US-based investment advisory firm Exchange Traded Concepts as its administrative sponsor.
Unparalleled in the ETF space, AAAU offers several distinct features.
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.
The unique guarantee of the physical gold backing the fund and the opportunity for investors to store their metal in one of the most secure central bank grade vaulting facilities in the southern hemisphere gives investors a new, accessible and cost effective way to invest in gold without the concern of storing the gold themselves.
Another key feature of AAAU is that shareholders may, at any time, exchange their shares for physical gold.
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.
The trading of AAAU commenced in New York on 15 August 2018 at 9.30am (EDT), with Australian and other investors outside of the United States also being able to participate in the fund through an international brokerage account. 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,” Mr Hayes continued.
“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,” he said.
AAAU combines features of a contemporary investment vehicle with the backing of solid gold, which has held its purchasing power across centuries of economic and geopolitical upheaval.
Investors can learn more about the AAAU and access the funds holding list specifying all physical gold segregated and secured for AAAU investors at www.aaauetf.com. The referenced guarantee does not apply to fluctuations in the value of shares based on the price of gold which could create potential losses.