Amundi Physical Metals plc has launched a new tranche of its Amundi Physical Gold Exchange-Traded Commodity (ETC), adding 30,000 securities to its existing offering. This latest issuance, Tranche 627, has been admitted to trading on multiple European exchanges, including Euronext Paris and Amsterdam, Deutsche Börse, Borsa Italiana, and the main market of the London Stock Exchange.
Following the issuance, the total number of ETC Securities has increased to 49,136,155. Each security in Tranche 627 represents a metal entitlement of 0.03969414 fine troy ounces of gold, slightly lower than the initial entitlement due to an annual Total Expense Ratio (TER) of 0.12%.
The Amundi Physical Gold ETC provides investors with exposure to physical gold without the need for physical delivery. The securities are backed by gold held by HSBC Bank plc, the custodian, and aim to track the price of gold.
This issuance comes as part of Amundi’s broader strategy to offer precious metal-linked securities, appealing to investors looking to diversify their portfolios with commodities. Designed to have limited recourse to the issuer, the securities are backed by the allocated gold, with claims restricted to the secured property.
Interest in gold-backed ETCs has risen as investors seek ways to hedge against market volatility and currency fluctuations. The Amundi Physical Gold ETC provides an alternative to direct gold investment, allowing participation in the gold market via the securities market.
However, potential investors are reminded that the performance of the ETC is subject to market conditions and gold price fluctuations. While the securities are secured by physical gold, they do not grant ownership of the metal itself, and risks related to gold price volatility should be considered.
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