Deutsche Brse Commodities’ gold reserve backing the Xetra-Gold bearer bond hasgrown to 50.038 tons. Each unit of the security is backed by exactly one gram of physical gold held in the vaults. At a price of €32.54 (Xetra price on 30 June) per unit of Xetra-Gold or per gram of gold, the current value of gold in custody is more than €1.6 billion.
Xetra-Gold achieved record fund inflows in the second quarter. A total of 9.6 tons of gold were sold between April and June. The strongest day of sales since Xetra-Gold was launched in December 2007 was 12 May 2010. On this day, investors bought 2.5 tons of physical gold via the Xetra-Gold security. In terms of months, May 2010 also recorded the most sales of any month thus far with 7.2 tons.
On Xetra, the Xetra-Gold trading volume totaled €757.3 million in the second quarter and thus rose by 55 percent over the first quarter (€489.2 million). Xetra-Gold is therefore by far the best-performing security from the around 170 exchange traded commodities (ETCs) available on Xetra. Its share of total order book sales in the ETC segment is around 37 percent.
Xetra-Gold provides investors with one of the most favorable opportunities of acquiring and trading physical gold. The bid/ask spread is generally only around 0.1 percent. No ongoing management fees are charged for Xetra-Gold, as opposed to fund trading and other ETCs.
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