Van Eck files to launch redeemable U.S. gold, silver ETFs

NEW YORK, March 7 Thu Mar 7, 2013 4:26pm EST

NEW YORK, March 7 (Reuters) - U.S. asset manager Van Eck Global has filed with the Securities and Exchange Commission to launch two gold and silver exchange-traded funds that will allow investors to redeem their shares for physical precious metals.

The two new products will add to Van Eck's line-up of commodities-focused ETFs, including its Gold Miners ETF and the Junior Gold Miners ETF and mutual funds.

Van Eck filed its regulatory papers late on Monday.

While holdings of major silver ETFs have hovered near all-time highs on strong interest by private investors, gold ETF holdings have recently fallen sharply due to a better global economic outlook.

Most precious metals ETFs do not allow their shareholders to take physical delivery, and those that do often charge a higher management fee to offset the extra costs related to physical redemption.

There are currently about 20 major global gold- and silver-backed ETFs, and dozens other exchange-traded products backed only by the good faith of banks and brokerages.

Similar to the proposed Van Eck ETFs, Canada's Sprott Inc operates a basket of precious metals exchange-traded funds that allow investors to redeem their shares for physical metals.

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Comments (1)
peterhailey wrote:
I read that there are currently over 600 times more gold futures contracts than there is physical gold that can be delivered. What theses bankers want to sell you is an IUO note and have no intention of ever delivering any gold. This is just another way to sell you something they do not own. I’ve got a great deal on the Brooklyn Bridge if you are interested in buying it.

Mar 08, 2013 1:57am EST  --  Report as abuse
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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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