The Royal Mint has announced that it has partnered with Quintet Private Bank to introduce the use of recycled gold in an ETC.
The Royal Mint Physical Gold ETC – listed on the London Stock Exchange with the ticker RMAU – will now be backed, in part, by bars made from recycled gold, making RMAU the world’s first gold ETC or ETF ever backed by recycled gold bars, according to research conducted by HANetf.
Quintet has allocated some USD170 million to RMAU to spur this innovation, supporting the development of sustainable investment solutions that deliver positive real-world impact.
This follows The Royal Mint’s announcement that they would be extracting gold from electronic waste such as laptops and smartphones as the 1,100-year-old organisation continues its sustainability journey as it diversifies for the future.
Given that, unlike many other commodities, gold can be infinitely recycled with no degradation in quality, such a product may represent an attractive investment opportunity for individuals and institutions seeking exposure to an innovative, recycled product. As an ETC, RMAU seeks to combine the flexibility and ease of stock-market trading with the benefits of physical gold ownership.
The first tranche of 100 per cent recycled gold bars will circa 50,000 ounces of surplus gold from bullion coin production refined into 400oz LBMA good delivery bars. The recycled bars will be added to RMAU over time, and their number – as well as the sources of recycled material – will increase based upon future demand. RMAU is currently, and will continue to be, 100 per cent backed by post-2019 LBMA responsibly sourced, physical bars.
Andrew Dickey, Director of Precious Metals at The Royal Mint, says: “We’re delighted to work with HANetf and Quintet to champion responsible sourcing and circular economy practises. We already reuse a portion of our gold onsite to form gold bars, but this is the first time we have produced a dedicated recycled product for use within our ETC offering.”
James Purcell, Group Head of Sustainable Investment at Quintet, says: “We are committed to supporting people and planet by investing in innovation. As a firm that places sustainability at the heart of our business and as the driving force behind our clients’ investments, we are very happy to partner with The Royal Mint, which has a deep commitment to sustainable practises. We are excited about today’s announcement and look forward to building upon this impactful partnership.”
Dickey says: “We’re delighted to partner with Quintet to produce an innovative, recycled gold product for use in our ETC as we champion sustainability in all areas of our business.”
The Royal Mint’s physically gold-backed ETC is listed on the FTSE (London), Deustche Boerse (Germany), Borsa Italiana (Italy) and Euronext (France) stock exchanges. RMAU is issued, managed and distributed by specialist white-label ETF issuer HANetf, which has worked with The Royal Mint since RMAU launched in 2020.
Each gold bar is stored in The Royal Mint’s vault on-site. The firm writes that most gold ETCs custody their gold at commercial banks so the RMAU ETC offers an attractive alternative to investors looking to diversify their custody arrangements.
RMAU ETC securities can be redeemed in exchange for physical gold bars and coins, with delivery and storage provided by The Royal Mint, a unique feature of the RMAU ETC. This new development means that a percentage of the bars held in the vault specifically for the ETC will be made from recycled gold.