Xetra-Gold registers new record high in gold holdings
Deutsche Börse Commodities stores 54.4 tonnes for physical backing of gold bond
Deutsche Börse Commodities: Deutsche Börse Commodities: The gold holdings of Deutsche Börse Commodities for the physical backing of the Xetra-Gold bond reached a new record high of around 54.4 tonnes in March, an increase of more than 4.5 tonnes since the beginning of the year. For each bond, exactly one gram of gold is deposited in the vaults. With a price of €34.67 (Xetra price on 10 March) per Xetra-Gold bond or one gram of gold, respectively, the current value of gold in custody is approximately €1.9 billion.
Steffen Orben, managing director of Deutsche Börse Commodities GmbH, commented: “Xetra-Gold offers investors one of the most cost-effective possibilities to buy and trade physical gold. The margin between bid and sell price is usually a mere 0.1 percent. The current record in gold holdings shows that an increasing number of investors trust in Xetra-Gold as an integral part of their portfolio.”
Among the 221 exchange-traded commodities (ETCs) tradable on Xetra, Xetra-Gold is by far the most successful in terms of turnover. During the first two months of the year, order book turnover on Xetra stood at €363.7 million – an ETC market share of more than 26 per cent. Unlike fund trading or other ETCs, Xetra-Gold does not incur ongoing management fees.
About Deutsche Börse Commodities GmbH
The Xetra Gold issuer Deutsche Börse Commodities GmbH, based in Eschborn, 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 issuer’s sole business purpose is to provide the market with Xetra Gold, the Exchange Traded Commodity (ETC) backed 100 percent with physical gold, and to enable efficient, transparent and cost-effective trading of this securitization of physical gold.
Xetra-Gold (ISIN: DE000A0S9GB0) is a 100 percent gold-backed Exchange Traded Commodity (ETC) issued by Deutsche Börse Commodities GmbH that represents the right to the delivery of physical gold. Each individual Xetra-Gold share grants the investor the right to demand the delivery of one gram of gold from the issuer. The issuer holds a corresponding amount of physical gold and a limited amount of account gold rights for each Xetra-Gold share. The fact that Xetra-Gold takes the form of a security makes it fungible and easy to trade. Insurance companies in Germany are also allowed to purchase Xetra-Gold for their restricted assets up to the amount of up to 5 percent of their commodities investment. The international derivatives exchange Eurex offers futures and options on Xetra-Gold. Xetra-Gold is admitted for sale to the public in Germany, Austria, Luxembourg, the UK and the Netherlands. The full details of the Xetra-Gold ETC, especially the terms and conditions, and information on the issuer can be found in the prospectus; this, and any supplements, can be obtained free of charge from Deutsche Börse Commodities GmbH, Mergenthalerallee 61, 65760 Eschborn, Germany, or can be downloaded at www.xetra-gold.com.
Xetra® and Xetra-Gold® are registered trademarks of Deutsche Börse AG.