Wednesday, January 19, 2011

UK ETF For Gold Coins

Sometimes, it seems there's an ETF for everything. Adding to that impression, London's Alternative Investment Market boasts an ETF devoted to holding rare and high-quality gold coins. It's Avare Gold Coins, and its net asset value is about 10.72 million pounds or $17.2 million. More than 90% of its funds are held in coin form; the rest is in cash.

Currently, its discount to NAV is more than 25%. So, it really isn't a full ETF; it's more of a closed-end trust.

After all, it would be hard to arrange for a redemption privilege. "Fancy this one, guv? Cost ya 10,754 shares at market. 'Ere's a sparkler; it'll set you back 78,582 shares at market plus 15,716 for VAT..."

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