This product is an ETF you can buy on the ASX that claims to track the Australian gold price, less fees which are 0.04%pa, less any brokerage you pay to buy it. With USD gold currently in a short term upward trajectory, seemingly heading to a break up through to all time highs, it’s another way of playing gold’s rise apart from the regular individual stocks or gold stock ETFs.
It’s been running for 8 years, so you don’t get the full, long term picture of gold in AUD, and it’s of course different to USD POG, but you can see by the chart this thing is starting to break up as well, but further off highs due to AU/USD movements.
From their website:
ETFS Physical Gold (ASX Code: GOLD) offers low-cost access to physical gold via the stock exchange and avoids the need for investors to personally store their own bullion.
GOLD offers investors a simple, cost-efficient and secure way to access gold by providing a return equivalent to the movements in the Australian dollar price of gold less a daily management fee.
GOLD is backed by physically allocated gold bullion held by JPMorgan Chase Bank, N.A. (the Custodian) in London. Only metal that conforms with the London Bullion Market Association’s (LBMA) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated which means there is no credit risk. Investors can choose to redeem units for the physical holdings.
GOLD is an exchange traded product (ETP) that can be created and redeemed on demand (by Authorised Participants). It trades on the stock exchange just like a share and is settled and held in ordinary brokerage accounts.