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F E B R U A R Y / M A R C H 2 0 1 9
W
ith precious metals bulls beginning
to flex their muscles again, institu-
tional and retail investors may find
buying physical gold through the Royal
Canadian Mint's Gold and Silver Reserves
Program a simple option.
Introduced on the Toronto Stock
Exchange (TSX) under the ticker symbols
MNT and MNT.U for the Gold Exchange
Traded Receipt and MNS and MNS.U
for the Silver Exchange Traded Receipts,
ETRs, listed in both Canadian and US dol
-
lars, are eligible for Canadian registered
plans including TFSA and RRSP accounts
These ETRs allow investors to build
pro-rated ownership in gold and silver.
This means that the amount of stock
owned equals a certain amount of physical
gold and silver bullion.
Each gold ETR represents slightly more
than 1/100th of an ounce of fine gold and
a silver ETR is about 0.6 of an ounce of
silver. Recently, the ETRs have been trad
-
ing between Net Asset Value (NAV) and a
slight discount to NAV of about 1-1.5%.
When the Royal Canadian Mint first
launched the gold ETR in 2011, during the
last bull market, ETRs were trading at a
3-5% premium for the first six months.
"With a semi-closed end structure, ETRs
may trade at a varying premium or dis
-
count to NAV; however, they tend to track
closely to the metal price as ETRs have
monthly redemption rights for physical
Royal Canadian Mint branded bullion bars
and coins," says Frank Caterina, Program
Associates, ETR Investor Relations.
When the offering first came to market
in 2011 the spot price for receipts in the
Royal Canadian Mint's Gold and Silver Reserves Program
provides direct ownership of bullion
INVESTING IN PRECIOUS METALS EXCHANGE-TRADED-RECEIPTS IS A GOOD WAY
FOR INVESTORS TO ENTER INTO THE PHYSICAL PRECIOUS METALS MARKET.
by Robert Simpson
INVESTMENT
