ETF Securities To Begin Trading The “ETFS Asian Gold Trust” (AGOL) Friday January 14, 2011
ETF Securities will begin trading its new “ETFS Asian Gold Trust” (NYSE:AGOL) Friday, January 14th. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trust’s expenses. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in gold. An investment in physical gold requires expensive and sometimes complicated arrangements in connection with the assay, transportation, warehousing and insurance of the metal. Although the Shares will not be the exact equivalent of an investment in gold, they provide investors with an alternative that allows a level of participation in the gold market through the securities market. Custody of the gold bullion deposited with and held by the Trust will be provided by the Custodian at its Singapore vaults, and by other subcustodians on a temporary basis only in unallocated form. The Custodian is a market maker, clearer and approved weigher under the rules of the LBMA.
The ETFS Asian Gold Trust (Trust) will issue ETFS Physical Asian Gold Shares (Shares) which represent units of fractional undivided beneficial interest in and ownership of the Trust. ETF Securities USA LLC is the sponsor of the Trust (Sponsor), The Bank of New York Mellon is the trustee of the Trust (Trustee), and JPMorgan Chase Bank, N.A. is the custodian of the Trust (Custodian). The Trust intends to issue additional Shares on a continuous basis.
Gross Expense ratio: 0.39% per annum ,
The expense ratio is .01% less than the SPDR Gold Trust (NYSE:GLD) and .14% more than the iShares Gold Trust (NYSE:IAU).
The Singapore Bullion Market
After London and Zurich, Singapore is one of the key regional cities for physical gold trading and one of the largest gold trading centers in Asia. Singapore was traditionally linked to the consumer and jewelry markets but is slowly becoming a hub for investment trading as well. In 2010, the Singapore Mercantile Exchange launched the first locally settled Gold futures contract, and Singapore opened its first free-trade zone for the custody and storage of precious metals.
For the full filing click: HERE