ETF in Focus

The Royal Mint Physical Gold ETC

Stockmarket ticker: RMAP
Sectors: Commodities - Precious Metals
Total expense ratio: 0.25%

What does it invest in?
The Royal Mint Responsibly Sourced Physical Gold ETC (RMAP) is an Exchange-Traded Commodity designed to provide investors with an efficient way to gain exposure to the gold market. It tracks the spot price of physical gold, offering investors the opportunity to participate in the movements of the precious metal’s price.

This ETC is noteworthy in that it is backed by physical gold. The Royal Mint collaborated with HANetf to create this product, making it the first financial product sponsored by The Royal Mint and the first gold ETC to be custodied with a European Sovereign Mint, whilst also being shariah compliant.

The Royal Mint Responsibly Sourced Physical Gold ETC aims to source all of its gold bars from the London Bullion Market Association’s Responsible Sourcing program to assure investors that the gold is from conflict‑free, legal sources. The gold held in the ETC is in the form of London Bullion Market Association (LBMA) Good Delivery bars, ensuring its quality and international acceptance.

Where is the gold stored?
The gold backing the ETC is stored and guarded in The Royal Mint’s highly secure vault located in Llantrisant, Cardiff. This secure storage ensures the safety and integrity of the gold holdings, providing investors with confidence in the physical backing of the ETC.

Why would you consider it for your portfolio?
Investing in The Royal Mint Responsibly Sourced Physical Gold ETC can be an attractive option for individuals seeking exposure to the gold market, through a more ethical source. Gold is often considered a safe-haven asset and a hedge against economic uncertainty and inflation. By holding physical gold, the ETC offers a direct and tangible connection to the underlying asset.

Additionally, investing in this ETC provides an alternative to owning physical gold outright, as it offers the convenience of being traded on stock exchanges, making it more liquid and accessible for investors.

Does it pay an income?
The Royal Mint Responsibly Sourced Physical Gold ETC (RMAP) does not pay an income to investors. Instead, its value is determined by the movements in the price of physical gold. As the spot price of gold fluctuates, the value of the ETC will correspondingly change, providing investors with potential capital appreciation based on the performance of gold.

In summary, The Royal Mint Physical Gold ETC is an innovative and secure way for investors to access the gold market. With its physical backing of gold stored in The Royal Mint’s vault, it offers investors an opportunity to benefit from the price movements of this precious metal while avoiding the need to handle physical gold directly. However, it’s important to note that as with any investment, the value of the ETC can fluctuate based on the spot price of gold, and investors should carefully consider their investment objectives and risk tolerance before including it in their portfolio.

You can invest in The Royal Mint Physical Gold ETC via InvestEngine’s commission-free DIY platform.

Is this ETC a part of your wider investment portfolio? If so, are you happy with it? Leave a comment below.

When investing, your capital is at risk.