The Royal Mint said it will introduce the use of recycled gold to its exchange-traded commodity (ETC), under a partnership with Quintet Private Bank.
The Royal Mint Physical Gold ETC (LSE:RMAU), which is already listed on the London Stock Exchange, will then be backed, in part, by bars made from recycled gold, making it the world’s first gold ETC or exchange-traded fund to be backed by recycled gold bars, according to research conducted by HANetf.
HANetf also said it would be the first financial product to be sponsored by The Royal Mint and the first gold ETC to be launched in partnership with a European sovereign mint.
Investors in RMAU will be able to redeem the gold ETC for physical gold bars or bullion coins, a feature unique to RMAU. Each ETC is equal to 1/100th of a troy ounce of gold at launch, equivalent to about US$19 per ETC based on the current gold price.
The Royal Mint previously announced it would extract gold from electronic waste, such as laptops and smartphones, as the 1,100-year-old institution continues to diversify.
Quintet has allocated about US$170mln to RMAU.