Resource World Magazine

F E B R U A R Y / M A R C H 2 0 1 9 www.resourceworld.com 17 Gold ETR was CDN $20.00. Its Net Asset Value, and consequently price, declined to around CDN $13.70 toward the end of 2013 and at the beginning of 2019 has recovered to CDN $18.00. The Silver ETR was initially offered at CDN $19.70 and quickly climbed to CDN $21.60 but has now settled at $12.30. "Once the sentiment for precious metals improves, it's possible that ETRs will again trade at a premium and the Royal Canadian Mint also expects to issue additional ETRs. We are also open to private placements," says Caterina. Subject to minimums, ETR holders have the monthly right to redeem their ETRs for newly fabricated Royal Canadian Mint bul - lion investment products including Gold or Silver Maple Leaf one-ounce coins, Kilo and 400-ounce gold bars or 100-ounce and 1,000-ounce silver bars. Redemption is surprisingly easy. The 15th of each month is the redemption date and on the Royal Canadian Mint's website there is a Redemption tab where inves - tors find detailed instructions. It's worth noting though that you can't just pull up with a pickup truck to pick up your pre- cious metals. On the redemption forms is a list of armoured carriers with contact information. There is also a handy redemp- tion calculator tool. You simply select an armoured carrier and complete the form with the help of your broker who then submits it to the Mint and the Mint's transfer agent. Beyond the fact that the ETRs are gov - ernment backed, the Mint will hold onto the gold purchased by its investors. Simply put, "the Mint will act as the custodian of the gold bullion on behalf of the ETR hold- ers and will hold the gold in its facilities in Ottawa. But like any investment, there are advantages and disadvantages investors should consider. Unlike many gold-based investments such as derivatives, and even many trusts, the Royal Canadian Mint ETR represents direct beneficial ownership of bullion held by the Mint. You can trade this ownership in both Canadian and US funds. "The entity structure is unique – so unlike an ETF or a mutual fund, inves - tors actually directly own the underlying asset – be it gold or silver – and that asset is held in custody by the issuer, which is the Royal Canadian Mint. ETRs represent direct beneficial ownership in gold or silver without the presence of an interme - diary," says Caterina. Many investors are unaware that the Mint's gold receipts are represented by $456 million worth of precious metals. Which makes them small compared to the larger trusts, but the Mint's offerings are also slightly different, in that most trusts hold interests in companies that hold gold bullion. What makes the Royal Mint's ETRs dif - ferent is that rather than tracking gold value and creating securities as needed on INVESTMENT

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