Over 50 Tons of Gold at Deutsche Börse Commodities
Record fund inflows and trading volumes for Xetra-Gold
Deutsche Börse Commodities: Deutsche Börse Commodities' gold reserve backing the Xetra-Gold bearer bond has grown to 50.038 tons. Each unit of the security is backed by exactly one gram of physical gold held in the vaults. At a price of €32.54 (Xetra price on 30 June) per unit of Xetra-Gold or per gram of gold, the current value of gold in custody is more than €1.6 billion.
Xetra-Gold achieved record fund inflows in the second quarter. A total of 9.6 tons of gold were sold between April and June. The strongest day of sales since Xetra-Gold was launched in December 2007 was 12 May 2010. On this day, investors bought 2.5 tons of physical gold via the Xetra-Gold security. In terms of months, May 2010 also recorded the most sales of any month thus far with 7.2 tons.
On Xetra, the Xetra-Gold trading volume totaled €757.3 million in the second quarter and thus rose by 55 percent over the first quarter (€489.2 million). Xetra-Gold is therefore by far the best-performing security from the around 170 exchange traded commodities (ETCs) available on Xetra. Its share of total order book sales in the ETC segment is around 37 percent.
Xetra-Gold provides investors with one of the most favorable opportunities of acquiring and trading physical gold. The bid/ask spread is generally only around 0.1 percent. No ongoing management fees are charged for Xetra-Gold, as opposed to fund trading and other ETCs.
Xetra-Gold is largely purchased by private investors. Growing interest is also noted among institutional investors as the product meets the European UCITS directive.
The Xetra-Gold bearer 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 bearer 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 Deutsche Börse. The product meets the provisions of the European UCITS directive. deutsche-boerse.com/xetragold_e.
About Deutsche Börse Commodities GmbH
The 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.