Perth Mint goes for gold on Wall Street with ETF

The West Australian-government backed Perth Mint has launched a gold exchange-traded fund on the New York Stock Exchange.

Perth Mint CEO Richard Hayes: ‘The case for gold remains compelling’. Picture: Colin Murty

The West Australian-government backed Perth Mint has launched a gold exchange-traded fund on the New York Stock Exchange in a bid to cash in on the rising global popularity of specialist ETFs.

The Perth Mint Physical Gold ETF (AAAU) debuted last night, becoming the first Australian gold ETF to be traded on Wall Street.

Gold-backed ETFs were launched in 2003, making it easier and cheaper for investors to gain exposure to the precious metal.

Perth Mint chief executive Richard Hayes said the launch of the fund provided a pathway for gold produced from Australian mines to be sold into the world’s biggest financial market.

Mr Hayes said the ETF was the first backed by physical gold, which itself was guaranteed by a sovereign entity in the WA government.

Each AAAU share represents ownership of 1/100th of an ounce of gold, which is secured by physical gold stored by Perth Mint. Shareholders may surrender their shares for bullion bars and coins from Perth Mint and even have the gold delivered to their door.

Investors outside the US are able to participate in the fund through an international brokerage account.

“Australian gold has an international reputation for purity and ethical sourcing, with investors integrally participating in the success of a great Australian story,” Mr Hayes said.

“In an increasingly uncertain and turbulent world, the case for gold remains compelling … ”

In 2016-17, Perth Mint’s annual profit fell 40 per cent to $24.4 million. The value of precious metals held at the Mint is about $3 billion.