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RMAU achieves redemption of physical gold

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HANetf reports that a 1 ounce (oz) bar of physical gold has been redeemed by Wahed through The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU). 

RMAU was launched in 2020 in partnership with The Royal Mint. HANetf explains that this relationship means that the ETC is 100 per cent backed by physical gold bars, held at The Royal Mint’s secure vault in Wales. 

The ETC allows its holders to receive gold bars or coins via the gold delivery redemption method, after which it can be delivered to the investor or held at the The Royal Mint’s vault for collection. RMAU is the only ETC to offer this, the firm writes.  

The 1 oz gold bar was redeemed by Wahed, an online Halal investing platform headquartered in New York City, with a Central London branch. HANetf writes that the redemption marks a historic moment for both RMAU and Wahed, the latter of which recently announced the launch of a gold-backed debit card.  

RMAU has recently surpassed USD850 million in assets under management (AUM) for the first time since its launch in 2020.  At the end of 2021, RMAU’s AUM stood at USD278 million. In January 2023, that number reached USD850 million, representing a growth of 205.8 per cent in just over a year.  

The ETC’s inflows have remained high even in periods when the gold spot price was falling. In September and October 2022, the gold price fell by -4.48 per cent but RMAU received over USD75 million in inflows.

HANetf writes that RMAU is backed 100 per cent by responsibly sourced physical gold and was the first financial listed product to be sponsored by The Royal Mint, and the first gold ETC to be launched in partnership with a European sovereign mint.  It is designed to provide investors with exposure to the spot price of gold by physically holding gold bars, which are custodied at The Royal Mint’s highly secure vault in Llantrisant, Cardiff.

RMAU gives investors the opportunity to access gold that aligns with their values. The Royal Mint’s unique control over the bullion in their custody means that the ETC is backed in part by LBMA Good Delivery bars that are cast from 100 per cent recycled gold, which is sourced from surplus in the manufacturing process. 

In addition to this, the gold ETC is 100 per cent backed by London Bullion Market Association (LBMA) Post-2019 responsibly sourced Good Delivery bars, meaning that the gold adheres to the highest responsible sourcing standard within the industry. 

“We believe, therefore, that RMAU appeals to sustainable investors that may not have had previous exposure to gold but are interested in the responsibly sourced gold ETC’s unique values,” the firm says.

Umer Suleman, Head of Risk at Wahed, comments: “We are excited to announce our partnership with HANetf, providing our customers access to reassurance through The Royal Mint Responsibly Sourced Physical Gold ETC that they can own physical gold. This collaboration underlines our commitment to delivering value and security to our clients. We look forward to working with HANetf and bringing their expertise to the benefit of Wahed customers.”

Hector McNeil, co-CEO and co-Founder of HANetf comments: “We are delighted that the first physical gold bar has been redeemed through RMAU. This is a unique feature and should give investors peace of mind knowing that they can get their hands on the actual gold backing their investment in RMAU. Partnering with The Royal Mint has ensured that the gold in the ETC is not only secure, but responsibly-sourced, and partially backed by 100% recycled gold. Investors looking to redeem gold via the ETC can be reassured that the bar in their hands has been certified by the London Bullion Market Association as Post-2019 Good Delivery.”

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