Why Xetra-Gold?
Xetra-Gold® is a bearer bond issued by Deutsche Börse Commodities GmbH, physically backed gold reserves and traded on the stock exchange in euros. Each individual Xetra-Gold bearer bond entitles the investor to the delivery of one gram of gold. As a security, Xetra-Gold is fungible and as easily transferable as a share.
Mater data
| Type: | ETC |
|---|---|
| ISIN: | DE000A0S9GB0 |
| WKN: | A0S9GB |
| Symbol: | 4GLD |
The benefits of Xetra-Gold
Just like physical gold, Xetra-Gold® is exempt from withholding tax – unlike other exchange-traded gold products.
No mark-up fee. Only the standard transaction fees that are charged for on-exchange securities trading are payable at the time of acquisition. The spreads that apply to purchase and sale correspond to the standard conditions on the global market and are considerably lower than those for traditional gold-based financial products. In addition, there are no management or administration fees for Xetra-Gold. The investor pays the custody fees agreed upon with the depository bank.
Xetra-Gold is traded on the most efficient European trading platform, Xetra®. This means liquid, continuous trading on the regulated market with a high degree of transparency, from 9:00 to 17:30 CET each trading day.
Xetra stands for liquidity. Day after day, trade after trade.
The issuer uses the proceeds from the issue of Xetra-Gold to purchase gold and, to a limited extent, gold delivery claims. The physical gold is held on behalf of the issuer by Clearstream Europe, a wholly owned subsidiary of Deutsche Börse AG. The issuer holds a further limited amount of gold in delivery claims with Umicore AG & Co. KG.
Xetra-Gold tracks the price of gold on a virtually 1:1 basis, and is always up to date.
Opportunities
Xetra-Gold® largely reflects the value of the commodity gold, which has a low correlation with stocks and other asset classes. Added to a portfolio, Xetra-Gold can diversify risk and stabilize performance.
Given continued strong gold demand and constant production capacity, Xetra-Gold offers attractive potential returns.
Each Xetra-Gold note grants the investor the right to the delivery of one gram of gold from the issuer or, alternatively, if an investor cannot exercise this right due to applicable legal restrictions, to request the issuer to pay out Xetra-Gold in cash at its repayment value.
Risks
By purchasing Xetra-Gold®, investors are investing in gold from an economic perspective and bear the market risk associated with gold. If the price of gold drops, the invested capital may be partially or completely devalued. Since factors other than the price of gold (e.g. the creditworthiness of the issuer) also impact the price, the value of Xetra-Gold may differ from the price of gold per gram.
Investors in Xetra-Gold do not acquire economic ownership, but rather the claims securitized in the bonds. Regarding the physical gold or the gold in delivery claims held on behalf of or by the issuer, investors acquire neither ownership/beneficial ownership nor security interests.
The physical gold held by Clearstream Europe on the issuer’s behalf is exposed to a risk of loss. Should such loss for the issuer materialize, it would likely impair the issuer’s ability to meet its obligations on the notes as there are no other assets available.
There is no guarantee that a secondary market for Xetra-Gold will always exist. As a result, investors should be aware of the risk that they may not be able to sell Xetra-Gold on the market or will not be able to do so at all times.
In the event of early redemption triggered by early termination on the part of the issuer, investors run the risk that the redemption amount is lower than the value of Xetra-Gold prior to termination by the issuer. Early termination by the issuer is only possible under certain circumstances. A more detailed explanation of these conditions can be found on page 46 of our prospectus.
Xetra-Gold is subject to an insolvency risk (credit or issuer risk) of Deutsche Börse Commodities. This is generally understood to be a risk of over-indebtedness or insolvency, i.e. a possible temporary or permanent inability to meet delivery and/or repayment obligations on time. As a bearer bond, Xetra-Gold is not subject to statutory or voluntary deposit protection.
Investors should note that the above list of risk factors is not exhaustive and does not provide a detailed description of all risks associated with an investment in Xetra-Gold. Before investing in Xetra-Gold, it is advisable to read the securities prospectus and consult a personal advisor.
Trend
The London Bullion Market Association (LBMA) has compiled numerous analyses and forecasts on gold price trends by renowned banks and agencies. The information is available here: http://www.lbma.org.uk