More than One Billion Euros Invested in Xetra-Gold
Xetra-Gold is Germany’s ETC with highest turnover
Deutsche Börse Commodities: Deutsche Börse holds gold in custody in its vaults with a total value of over one billion euros. The gold, which backs the bearer bond Xetra-Gold, currently amounts to 38.5 tons. Each unit of the security is backed by exactly one gram of physical gold. With the price of gold at €26.75 per gram (Xetra closing price), the total value of the physically deposited gold is thus over one billion euro.
Xetra-Gold has the highest turnover of the approximately 150 Exchange Traded Commodities (ETC) tradable on the Frankfurt Stock Exchange. The average monthly order book turnover on Xetra in 2009 was €127.8 million, totaling over €1.5 billion at the end of the year. This order book turnover is more than three times that of the second most successful product in the ETC segment. Launched in December 2007 Xetra-Gold’s market share of commodities trading on Xetra was over 32 percent in 2009.
With just one product, Deutsche Börse Commodities GmbH is the second largest issuer of ETCs/commodity certificates traded on stock exchanges in Germany. While Xetra-Gold was initially purchased by predominantly private investors, there is now increasing interest among institutional investors too. The product meets the provisions of the European UCITS directive.
Xetra-Gold provides investors with one of the most favorable opportunities of acquiring and trading physical gold. The bid/ask spread is only 0.1 percent. The end investor only has to pay a custodian fee, just as for any other security. No other ongoing management fees are charged for Xetra-Gold.
The Xetra-Gold bond (ISIN: DE000A0S9GB0) combines the advantages of physical gold with the transparency and low costs of exchange-trading of securities. 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 the transporting and storing physical gold. Private investors can obtain the underlying gold in physical form from their bank if desired.
About Deutsche Börse Commodities GmbH
The issuer, Deutsche Börse Commodities GmbH, based in Frankfurt, is a joint venture between Deutsche Börse and the banking partners Commerzbank AG, DeutscheBank 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.
Xetra is a registered trademark of Deutsche Börse AG.