Friday , 24 November 2017


Canadians Take Note: Own Physical Gold via Canadian Mint's New Gold ETRs

The Royal Canadian Mint has announced that it is making an initial public offering of exchange-traded receipts (ETRs) under the mint’s new Canadian Gold Reserves program. Unlike other gold investment products currently available which only enable the purchaser to own a unit or share in an entity that owns the gold, the ETRs will enable the purchaser to actually own the physical gold bullion which will be held in the custody of the mint at its facilities in Ottawa. Words: 650

So says The Royal Canadian Mint (www.mint.ca) in a recent news release*.

Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has further edited ([ ]), abridged (…) and reformatted the release below for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

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Says Ian E. Bennett, president and CEO of the Royal Canadian Mint:

“We believe that this new program will build on our reputation and continued success as a world-class custodian of precious metals. With the introduction of the Canadian Gold Reserves ETR program we hope that investors will see this as a convenient, efficient, and secure method for investing in and owning physical gold.”

The release goes on to say:

Net proceeds of the offering will be used to purchase gold on behalf of the initial purchasers of ETRs at the London p.m. fix price on the closing date of the offering which is expected to occur in late November 2011 . Subject to certain restrictions, ETR holders will be entitled to redeem their ETRs for physical gold products in the form of 99.99 per cent pure gold bars or coins, or for cash based on the future gold price or market price of the ETRs.

Subject to market conditions, the initial offering of ETRs is targeting an issue size of approximately C$250 million. The issue price per ETR will be C$20 or the U.S. dollar equivalent and the Per ETR Entitlement to Gold will be determined on the closing date and will be reduced daily by an annual service fee of 0.35%.

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Subject to the satisfaction of certain conditions, the ETRs will be listed on the Toronto Stock Exchange and commence trading on the closing date. ETRs will be listed in both Canadian and U.S. dollars and may be traded in either currency.

Through a competitive process, the Mint has selected a syndicate of investment dealers led by TD Securities Inc. and National Bank Financial Inc., and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., Cormark Securities Inc., MGI Securities Inc., and Raymond James Ltd. to distribute the ETRs on a best efforts agency basis. The offering is being made on a prospectus-exempt basis pursuant to the terms of an order of the Ontario Securities Commission dated August 30, 2011…

*http://www.mint.ca/store/news/royal-canadian-mint-announces-offering-of-new-gold-investment-product-13100003?cat=News+releases&nId=700002&parentnId=600004&nodeGroup=About+the+Mint

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