Page 25 - Bullion World Volume 04 issue 12 December 2024

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RMAU tracks the spot price of physical gold and is invasion of Ukraine. The first Gold product to do so
fully allocated – this means the ETC is 100% physically globally. In addition to this, the ETC is shariah-compliant.
backed by 400oz gold custodied by The Royal Mint at
their purpose-built vault in Llantrisant, Wales – one of Uniquely, over half the gold backing the ETC is 100%
Europe’s most secure sites. Because of this, all the gold recycled, with the aim of increasing the proportion over
is held outside the London banking systems, providing time. The 50%+ is on an ongoing benchmark. Gold
a potentially attractive option for investors seeking mining can be a dirty business. It entails moving vast
real diversification in their gold custody arrangements, quantities of rock. A standard gold bar (400 troy ounces)
compared to most gold ETPs which custody at banks in requires digging up about 5,000 tonnes of earth – and
or near London. each year, gold grades are decreasing, meaning more
earth must be dug up to get the same amount of gold
The ETC also offers physical redemption, whereby as before. This can have a profound impact on natural
investors can redeem their shares for physical gold in ecosystems and landscapes. Mining is also energy
the form of a wide range of gold bars and coins. The intensive – extracting and grinding gold ore requires
range of bars and coins offered is unparalleled, reflecting almost 90,000 kilojoules (KJ) per gram of gold produced,
the broad range covered by The Royal Mint in its core which is the equivalent of about one day of electricity use
business, including the Sovereign and Britannia ranges. for the average American home.
This redemption mechanism underscores the physical
backing of the ETC, allowing investors to get their hands Recycled gold, by contrast, is estimated to be over 90%
on the gold they invest in. No Gold ETF globally offers the less carbon intensive than mined gold. This means that
breadth of redemption options, most offer none and the RMAU can potentially offer a more sustainable solution
few that do only usually offer large and costly 400 ounce for investors. The bars are independently audited twice
bars. yearly, and the results are publicly available. This means
sustainable investors interested in investing in gold have
The Royal Mint is committed to the highest standards voted with their feet and invested in RMAU.
of sustainability across their whole business, and The Royal Mint as an organisation also incorporates
RMAU is no different. 100% of the gold custodied is strong ESG and sustainability initiatives across its
London Bullion Market Association (LBMA) post-2019 operations. In recent years, it has committed to
responsibly sourced good delivery bars, with a growing sustainable metal
number of post-2022 bars. Thanks to The Royal Mint’s
close control over its supply chain, all bars of Russian
origin were immediately removed following the 2022

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