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NYSE:AGOL – Now You Can Buy Gold Stored in Singapore

01/20/11 by  
Filed under Bourbon & Bayonets

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ETFS Physical Asian Gold Shares (NYSE:AGOL), the latest offering from London-based ETF Securities, began trading last Friday (1/14/11).  It will custody its physical gold bullion with JP Morgan Chase Bank in secure LBMA (London Bullion Market Association) approved vaults in Singapore.

Each share represents a direct interest in physical gold bullion.  The initial quantity is 0.1 ounce of gold per share, which will be reduced over time to pay the 0.39% expense ratio.

ETFs based on physical gold have been very popular with investors, amassing nearly $65 billion in assets.  Four ETFs backed by physical gold:

  • SPDR Gold Shares (NYSE:GLD) launched in late 2004, making it the first ETF in this category.  It is currently the largest gold bullion ETF with $58 billion in gold bars stored in London and has an expense ratio of 0.40%.
  • iShares Gold Trust (NYSE:IAU) is currently the ETF with the lowest expense ratio at 0.25% and each share represents 0.01 ounces of gold (less expenses).  It has more than $5 billion in assets and stores its gold in New York, Toronto, London, and other locations.
  • ETFS Physical Swiss Gold Shares (NYSE:SGOL), launched in September 2009, are backed by 0.1 ounces of gold (less expenses of 0.39%) with the gold stored in Switzerland.
  • ETFS Physical Asian Gold Shares (NYSE:AGOL) launched last week has an expense ratio of 0.39% and stores its gold in Singapore.

Additional information about AGOL is located in the press release, summary page, fact sheet (pdf), and prospectus (pdf).

Ron Rowland
Invest With An Edge

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