Source Physical Gold ETC (SGLD) hits $2.5 billion in assets

Jul 24th, 2012 | By | Category: Commodities

Source, a European provider of exchange-traded products (ETPs), has announced that the Source Physical Gold P-ETC (SGLD) has reached $2.5 billion in assets.

Source Physical Gold ETC (SGLD) hits $2.5 billion in assets

The Source Physical Gold ETC (SGLD) is secured by physical metal held in JP Morgan’s London vaults.

As demand for precious metals has continued, investors have increasingly adopted physically-secured ETPs as their vehicle of choice.  The Source Physical Gold P-ETC is now among the largest exchange-traded physical gold products globally.

In 2011, the Source Physical Gold P-ETC added over $1.2 billion in net new assets and traded over $4 billion on the LSE.  So far in 2012, the product has added over $360 million in net new assets and already traded over $4 billion on the LSE, ranking it in the top five ETPs traded on the LSE for the year.

Commenting on this new asset milestone, Stefan Garcia, head of commodity ETC sales at Source said, “Investors look to precious metals as both an investment opportunity and a safe haven.  The concept of a physical holding, coupled with the ability to access it in times of crisis, is part of their appeal.  It is important that the investment vehicle does not compromise this.”

Source P-ETCs combine the convenience and liquidity of an ETP with the reassurance of physical investment.  Each P-ETC is secured by physical metal held in JP Morgan’s London vaults.

The product has an annual fee of 0.29%.

Following is a full list of the physically-backed gold ETCs listed on the London Stock Exchange:

Source Physical Gold P-ETC (SGLD)
The Source Physical Gold P-ETC provides physically-backed exposure to the performance of the London Gold Market PM Fixing Price in USD. Each Gold P-ETC is a certificate which is secured by gold bullion held in JP Morgan Chase Bank’s London vaults. London listed. TER 0.29%.

ETFS Physical Gold ETC (PHAU)
The ETFS Physical Gold ETC is designed to offer investors a simple, cost-efficient and secure way to access the gold market by providing a return equivalent to movements in the gold spot price less the relevant management fees. PHAU is backed by physical allocated gold held by the custodian (HSBC). All physical gold metal held with HSBC conforms to the London Bullion Market Association’s (LBMA) rules for Good Delivery. London listed. TER 0.39%.

iShares Physical Gold ETC (SGLN)
The iShares Physical Gold ETC is a physically-backed Exchange Traded Commodity (ETC) offering investors accessible, liquid and transparent exposure to the day-to-day movement of the price of gold, as per the London PM fix price. The security is backed by physical gold bullion held as allocated gold bars with the custodian, JPMorgan. London listed. TER 0.25%.

db Physical Gold ETC (XGLD)
The db Physical Gold ETC is backed by a direct investment in physical gold and provide investors with exposure to the gold spot price via London Good Delivery Gold Bars. The issuer (Deutsche Bank) has direct and sole ownership of the gold which is stored in secure vaults in London (JP Morgan and Deutsche Bank). Each physical ETC security entitles the holder to a specified quantity of gold of the segregated pool owned by the issuer. London listed. TER 0.29%.

Tags: , , , ,

Leave a Comment



More in Commodities
Gold ETFs set to benefit as 'fear trade' intensifies, reports World Gold Council
Gold ETFs set to benefit as ‘fear trade’ intensifies

Gold ETFs look set to continue their recent bull run as, according to a report issued by the World Gold Council, the spot...

S&P DJI: Chinese growth concerns weigh heavy on metals
S&P DJI: Chinese growth concerns weigh heavy on metals

By Jodie Gunzberg, head of commodities indices at S&P Dow Jones Indices. Industrial metals hit multi-year highs last month with the S&P GSCI...

Close