Xetra-Gold (ISIN: DE000A0S9GB0), is a financial product combining the benefits of physical gold with exchange-traded securities. It was launched to investors on the Luxembourg market by Deutsche Börse Commodities after its successful introduction in Germany in December 2007.
Xetra-Gold is a bearer’s note that can be bought and sold via Deutsche Börse’s Xetra trading platform and every unit represents the option of one gram of gold to be delivered. The securities issued can be traded on an ongoing basis without delay and - if so requested - can be exchanged for the underlying physical amount of gold via the private investor’s own bank. Thus Xetra-Gold combines the benefits of physical gold with the low cost of trading securities on Xetra, making it an ideal product for risk diversification. Exchange-based trading makes Xetra-Gold a fungible and liquid security with a transparent pricing process. The issued security fulfils the specific European Union criteria for investments funds (so called UCITS criteria), making it eligible for institutional investors such as investment funds.
Clearstream stores the gold in its vault. Umicore AG & Co. KG, an industry partner, supplies, checks and handles the physical gold. The safe custody of the gold reserves at Clearstream meets the highest security standards and saves investors the costs of transporting and storing physical gold.