Deutsche Börse Commodities makes 500th Xetra-Gold delivery
A total of 2.5 tonnes of gold have been transferred to investors
Deutsche Börse Commodities: Xetra Gold is a zero-coupon bond with perpetual maturity, representing a gram of gold. It is 100% backed by physical gold and represents the right to the delivery of gold. For investors, owning a unit of Xetra-Gold is equivalent to owning one gram of physical gold.
Since Xetra-Gold launched in 2007, investors have already made use of this physical backing 500 times and taken delivery of a total 2.5 tonnes of gold. Fees for packaging, transport and insurance apply, which depend on the quantity delivered.
“Investors have a choice of small bars in several different sizes (1 gram to 1000 grams) and standard bars of 12.5 kilograms,” said Steffen Orben, managing director at Deutsche Börse Commodities GmbH. “Delivery normally takes around two weeks.”
The Deutsche Börse Commodities' gold reserve, which backs the Xetra-Gold bearer bond, amounted to 50.6 tonnes at the end of July. The gold is stored at Clearstream’s vaults in Frankfurt. At a price of EUR 36.38 per unit (Xetra price on 29 July), the current value of the gold in custody is around EUR 1.8 billion.
“Xetra-Gold provides investors with one of the most favourable opportunities of acquiring and trading physical gold,” said Martina Gruber, managing director at Deutsche Börse Commodities. “The bid/ask spread is generally only around 0.1 percent. In contrast to fund trading and other ETCs, no ongoing management fees are charged for Xetra-Gold.”
Xetra-Gold is therefore by far the best-performing security among the 181 exchange traded commodities (ETCs) available on Xetra. Its share of total order book sales in the ETC segment is around 16 percent.
The Xetra-Gold bond (ISIN: DE000A0S9GB0) combines the advantages of physical gold with the transparency and low costs of exchange-trading of securities. There is no ongoing management fee. Each bond represents the option of delivery of one gram of gold and can be bought or sold continuously via the Xetra trading platform. Clearstream Banking Frankfurt (CBF), a Deutsche Börse subsidiary, stores the gold in its vault. The physical gold is supplied, monitored and processed by industry partner Umicore AG & Co. KG. The safe custody of the gold reserves at Clearstream meets high security standards and saves investors the costs of transporting and physically storing the gold. Private investors can obtain the underlying gold in physical form from their bank if desired. The physically backed debt instrument Xetra Gold was admitted for trading in December 2007 and has since become the commodity with the highest turnover of all ETCs listed on the Frankfurt Stock Exchange. The product meets the provisions of the European UCITS directive. www.deutsche-boerse.com/xetragold
About Deutsche Börse Commodities GmbH
The Xetra Gold issuer Deutsche Börse Commodities GmbH, based in Frankfurt, is a joint venture between Deutsche Börse AG and the banking partners Commerzbank AG, Deutsche Bank AG, DZ Bank AG, B. Metzler seel. Sohn & Co. KGaA, and Swiss-based bank Vontobel. Umicore AG & Co. KG, a Group subsidiary of Umicore s.a. which operates several gold refineries across the globe and manufactures gold bars, is also a partner. The partners bundle their stock exchange, financial market, settlement, custody and logistics expertise and provide an efficient and transparent market in the financial centre of Frankfurt for gold trading in Europe. With just one product, Deutsche Börse Commodities GmbH is the second largest issuer of ETCs/commodity certificates traded on stock exchanges in Germany.
Xetra® and Xetra Gold® are registered trademarks of Deutsche Börse AG.