LONDON – Amundi Physical Metals plc has announced the issuance of a new tranche of its Amundi Physical Gold ETC, adding 30,000 securities to its existing offerings. This latest issuance, Tranche 627, has been admitted to trading on several European exchanges, including Euronext (EPA:) Paris and Amsterdam, Deutsche Börse, Borsa Italiana, and the main market of the London Stock Exchange (LON:).
The ETC Securities, which provide exposure to physical gold, have seen their aggregate number rise to 49,136,155 immediately following the issue. Each security in this tranche is entitled to a metal entitlement of 0.03969414 fine troy ounces as of the Subscription Trade Date, which is slightly lower than the initial metal entitlement at the series issue date due to the Total (EPA:) Expense Ratio (TER) of 0.12% per annum.
Investors have shown growing interest in gold-backed exchange-traded commodities (ETCs) as a way to hedge against market volatility and currency fluctuations. The Amundi Physical Gold ETC allows for investment in gold without the need for physical delivery. The ETC Securities are secured by gold held by HSBC Bank plc, the custodian, and are designed to track the price of gold.
The Amundi Physical Gold ETC is part of a broader program by Amundi Physical Metals plc to offer precious metal-linked securities to investors seeking to diversify their portfolios with commodities. The securities are structured to have limited recourse to the issuer, with claims restricted to the secured property, primarily the allocated gold.
This issuance aligns with the growing trend of investors turning to tangible assets amid economic uncertainties. The Amundi Physical Gold ETC offers an alternative to direct investment in gold, with a level of participation in the gold market through the securities market.
The ETC Securities are subject to market conditions and the performance of gold, which can be volatile. Investors considering the Amundi Physical Gold ETC should be aware of the potential risks and the fact that the investment does not confer ownership of the physical gold.
The information provided is based on a press release statement from Amundi Physical Metals plc.
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