Gyroscopic Investing

I stumbled upon information regarding the planned launch of a new ETF with symbol AAAU by the Perth Mint: https://www.nasdaq.com/markets/ipos/com ... 1518-86628. Expense ratio is yet to be defined but hopefully compares favorably to the 0.15% charged for Perth Mint Gold (PMG or PMGOLD) on the Australian Stock Exchange. This new ETF would be fully backed (no derivatives) and allow delivery of physical gold.

That is very cool, thank you. I like that a lot. Interesting how their USA address is Oklahoma City... connection to APMEX?

Not APMEX (that is one of their distributors for coins BTW) but another structure doing their marketing IIRC. It's all in the SEC filing.

The SEC filing containing a preliminary prospectus (that may still change) is at https://www.nasdaq.com/markets/ipos/fil ... d=12695497 and was amended by https://www.nasdaq.com/markets/ipos/fil ... d=12779867 (lot to read there).

In it, you can see that Exchange Traded Concepts, LLC (based in Oklahoma City) is the Administrative Sponsor that organizes and sponsors the trust while Gold Corporation is the Custodian that sponsors the trust and stores the gold, and the Bank of New York Mellon is the Trustee that provides accounting and administrative services to the trust, holds the trust's cash (if any) and other assets.

All in all, this is promising and potentially more appealing than other ETFs but the expense ratio is yet to be announced.

MangoMan I do not know, and I also don't know how long the application will take to be processed but I believe this filing to be the last step before the IPO. It would take someone familiar with the SEC filing process and any subsequent steps to guesstimate this, and that's not me. Hopefully soon!

Interesting!

I set a tickler for today. I did a search and it looks to me that it has not started trading. Oh well, set another tickler for next month.

Do the Aussies take the month of August off like the Euros? Wait, it is now the middle of winter there. So is January their August?? Those darned upsider-downers are really confusing.

ER .2

https://www.graniteshares.com/BAR/6
http://www.etf.com/sections/daily-etf-w ... t-gold-etf

tickler came up again.

EDIT: looks like it is available for sale.

I am not an early adopter so I will wait some time before I buy.

This seems to be US domiciled ETF. Do they have any equivalent ETF domiciled elsewhere?

SGOL is an American-based gold ETF, but its gold is held in Switzerland. It is not ideal, but it does provide some measure of geographical diversification. The net expense ratio (0.39%) is a little higher than IAU or GLD, but it has been in operation for a number of years and has total assets of about US$ 1 billion. It might be an alternative to the Perth Mint ETF until it is up and running and has a proven track record.

There is also a Swiss-based gold ETF run by the Canton of Zurich Bank. Last I heard, however, they do not sell to American citizens. It might still be a good choice for a non-US resident looking for a gold ETF based outside the US.

I've been reading up on AAAU. I like the expense ratio of only 0.18%, versus 0.40% for GLD.
I like that an investor can redeem shares for physical gold, although it's not the easiest process. No surprise there. But at least it can be done.
The gold is stored, allocated, at Perth Mint. They are the custodian. Their gold is ultimately backed by law by the govt of Western Australia.

Last year I looked into doing a like kind exchange from GLD to physical. I found firms who said that it can be done, because GLD ownership is treated as ownership of physical, in the hands of a custodian. So, I am hoping the same should apply to a GLD to AAAU exchange. AAAU share ownership is, like GLD, considered to be owning the gold held for you by the custodian. So we'll see.