Australia, the second biggest gold-producing country, has been a key player in global gold market. Hicks pointed out that of the 295 tonnes of gold produced last year, 92% was refined and distributed by The Perth Mint.
“We are therefore well aware of the robust demand for bullion among banks, investors and fabricators in key markets, including China and India. These countries are the world’s two largest consumers of gold and are, of course, situated within our region of the world,” Hicks said.
As a way to better help investors access the gold market, Exchange Traded Concepts, in conjunction with The Perth Mint, Australia’s largest fully integrated precious metals refining, minting and depository enterprise, recently launched the Perth Mint Physical Gold ETF (NYSEArca: AAAU).
“Investors still want to include gold within their portfolios, but increasingly they are demanding an accessible and convenient way to hold the precious metal, without the need for physical storage,” Hicks said.
Mike Cronan, President of Marketing Services at Exchange Traded Concepts, explained that AAAU is the first gold ETF backed by a sovereign entity, the Government of Western Australia. The fund’s Custodian Gold Corporation, which trades as The Perth Mint, is 100% owned by the Government of Western Australia and the guarantee is explicitly stated in an Act of Parliament, the Gold Corporation Act 1987. The majority of the fund’s physical gold is vaulted by The Perth Mint, and its network of central bank grade vaults is the largest in the southern hemisphere and located in Western Australia, one of the world’s most geopolitically stable regions.
Additionally, AAAU shareholders can choose to exchange shares for physical gold from The Perth Mint at any time to almost any location serviced by FedEx. The fund is the only US-listed ETF to vault gold in Asia versus the traditional centers of NYC and London. The ETF comes with a very competitive management fee of 0.18% per annum, and it minimizes potential tracking error to the gold price that currency conversion could allow.
Financial advisors who are interested in learning more about investing in gold can watch the webcast here on demand.