GOLD 0.51% $1,391.7 gold futures

there is also zaubwa (or zauwba?) not sure which is Perth Mint...

  1. 5,231 Posts.
    there is also zaubwa (or zauwba?) not sure which is Perth Mint and sells 1/100ths of an ounce. have a look at Perth
    Mint site for the pds.

    http://www.goldbullion.com.au/au/how_invest/gb_how_buy_gbs.php
    Fees & Charges
    A summary of the fees and charges incurred when buying or selling GBS is listed below. Please see the Prospectus for a full description.

    management fee: A management fee of 0.40% p.a. is charged to all Holders of GBS. This fee is accrued daily but it is only deducted from the trust gold at the end of the month. See fee schedule Excel File
    creation fee: The Company charges Market Makers a Creation Fee of A$750 per transaction. This is applied to new creations only.
    redemption fee: This only applies to investors who redeem GBS via the Redemption Form. A flat A$1,000 fee is charged regardless of the amount of GBS being redeemed. This fee will not apply to investors selling GBS via the ASX, i.e. on the secondary market
    brokerage charges: Your broker or financial advisor will also charge you normal transactions costs associated with the purchase or sale of shares

    This is a summary of charges which may be incurred when buying or selling GBS. Please read the Prospectus or ask your financial advisor for more detail.



    http://www.goldbullion.com.au/au/shares/gb_shares.php#1

    Overview
    Name: Gold Bullion Security
    Listings:
    • LSE "GBS"
    • ASX "GOLD"

    Pricing: Approximately 1/10th of an ounce of gold (see relevant product for exact amount)
    The Gold Bullion: All gold is kept in Allocated Form
    Custodian: HSBC Bank USA, N.A. (“HSBC”) or subcustodian
    Margin Eligible: Yes
    Structure: GBS: A secured undated zero coupon note issued by Gold Bullion Securities Limited, which on redemption entitles the Holder to the cash equivalent of the Per Security Entitlement to Gold.

    GOLD: A redeemable preference shares issued by Gold Bullion Securities Limited, which carries with it an entitlement to gold bullion held on trust for all security holders



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    Advantages
    Exchange-Traded Securities will trade on a stock exchange
    Accessible Investors can now purchase gold backed products through traditional brokerage accounts – allowing gold to be mixed with traditional asset classes such as stocks and bonds in an investment portfolio
    Liquid In addition to trading on an exchange, GBS can be created and redeemed by Market Makers on an ongoing basis. Therefore, the underlying liquidity will be determined by the gold market which is a 24 hour global Over-the-Counter (OTC) market
    Cost Effective For many investors, costs associated with buying and selling the securities are expected to be less than the costs associated with buying, selling, storing and insuring gold bullion in a traditional allocated gold bullion account. See 'How to Invest' for exact fees and charges
    Transparent The securities are backed by 400 ounce London good delivery gold bars. Net Asset Value and other relevant financial information are calculated daily, and posted on the web site under Financial Information. The gold bars can be seen on the Gold Bar Holdings page.
    Premiums/Discounts Should be Limited – The ongoing ability of Market Makers to create and redeem securities (by exchanging gold for GBS and vice versa) should limit potential premiums and discounts
    Low Counter-party Risk The Trust’s gold is held in the form of individually identified bars in an allocated account with a Custodian which holds the bars on trust for investors. The Trustee may not trade, lease or lend the bars.
    Storage & insurance Storage is covered by the Custodian, HSBC or subcustodian while the gold is insured under HSBC Group’s insurance policy. These expenses are covered by the monthly fee.


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    Product Structure

    The Gold Bullion Security (GBS) is an exchange traded security (share or note) of nominal value which carries with it an entitlement to approximately 1/10th of one fine troy ounce of gold bullion. For each GBS on issue there is a corresponding amount of gold held in trust.

    The exact structure of GBS to which the gold is attached may vary between markets depending on the structure of the market, tax and specific security regulations. For example, in Australia, the gold is attached to a redeemable preference share, whereas in the UK, the gold is attached to a Note.

    Potential investors are advised to consult the relevant Prospectus for details on the exact structure of each GBS.
    The following diagram illustrates the value of a Gold Bullion Security:

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    Allocated Gold

    Gold bullion held at the Custodian Bank for GBS investors on trust will be held in the form of Allocated Gold.

    Allocated Accounts

    All gold held for investors of Gold Bullion Securities is held in allocated form.


    Allocated accounts are held by the Custodian or subcustodian in the trustee’s name and consist of uniquely identifiable bars of gold "allocated" to the trustee and beneficially belonging to the investor. The gold held in the account is physically segregated from other metal held in the vault. Metal in an allocated account does not form part of the Custodian’s assets. Allocated gold is not lent out and does not involve any derivatives.

    Unallocated Accounts

    Most gold traded in the London market is traded and settled in unallocated form. Gold held in this form does not confer on the investor any interest in the underlying gold and the investor only ranks as an unsecured creditor. Unallocated gold may be lent out to third parties.


 
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