Australian Gold Bullion Securities


Gold Exchange Traded Funds

The newest and probably the easiest way of investing in gold bullion is through an Australian exchange traded fund ASX Code: GOLD.

“Gold Bullion Securities were created as a joint initiative between Gold Bullion Limited and the World Gold Council to provide investors with a secure, low cost investment in owning gold bullion without the usually higher costs associated with the storing and transacting of physical gold.”

A GOLD security consists of a gold bullion share of nominal value and a beneficial interest in approximately 1/10th of one fine troy ounce of gold bullion held on trust for the holder of the security.

The gold is held in London vaults by a custodian. A trust deed establishes a separate trust for each holder of GOLD so that the holder is absolutely entitled to the gold bullion held in the vaults. Each time a holder transfers GOLD to a new holder, the beneficial interest in the gold bullion automatically transfers to the new holder.

GOLD is 100% backed by physical gold held mainly in allocated form, in the HSBC Bank Vault in London

Since Gold Bullion Securities Limited (ASX code: GOLD) listed the world’s first gold backed securities on the Australian Securities Exchange during March 2003 many similar funds have been listed on stock exchanges in the USA, France, Singapore, South Africa, Switzerland, Turkey, and the United Kingdom. These gold ETFs have been seen to track the gold price almost perfectly over the last 5 years. With management fees of 0.40%pa, these securities offer an efficient and secure alternative to holding physical gold.  Further, exchange traded gold can be traded as easily as any other security listed on a stock exchange.”

Note: The owners of hold GOLD.

Gold Bullion Securities listed on ASX - Prospectus information

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