gold warrant opened today

  1. 13,013 Posts.
    lightbulb Created with Sketch. 96
    If my quote is correct there wasn't a whole lot of interest. Only two trades for a total of 7,300..can that be right?

    Australia's Gold Corp lists "virtual gold" warrant
    Thursday May 15, 10:44 pm ET

    SYDNEY, May 16 (Reuters) - An Australian state mint listed "virtual gold" warrants on the stock exchange on Friday, saying conditions were ripe for the return of gold as an investment instrument after two decades of bear markets for the metal.

    Gold Corp, operator of Western Australia's Perth Mint, listed Perth Mint Gold Quoted Product (PMG) call warrants which carry entitlements to one-hundredth of an ounce of fine gold.

    The PMGs (Australia:ZAUWBA.AX - News) create a right enabling investors to trade gold on the stock exchange through stockbrokers.

    Australian Stock Exchange managing director Richard Humphry said it was the first time investors were able to trade gold bullion in this way on any stock exchange in the world.

    If investors purchased all 321.5 million PMG units in the initial series, it would represent 100 tonnes of gold, which would be stored at The Perth Mint and covered by a Western Australian government guarantee.

    This would exceed Australia's official gold reserves by 20 tonnes and at today's prices be worth more than A$1.7 billion ($1.1 billion), Gold Corp chief executive Don Mackay-Coghill said.

    Investors who exercise PMGs before December 31, 2013 may take physical delivery in Perth Mint gold bar or coin products.

    PMG warrants were quoted at A$5.47/A$5.52 in a tight spread soon after listing, in line with the Australian spot gold price.

    The product is the second near-direct investment in gold to list on the Australian Stock Exchange, after Gold Bullion Ltd (Australia:GOLD.AX - News) bullion-backed securities, that track the Australian dollar gold price, debuted in March.

    Sales of these securities exceeded A$15 million in their first month of trading.

    Mackay-Coghill said increasing insecurity was leading investors to look to alternative vehicles.

    "PMG has been developed in response to this new mood," he said.

    Australian dollar gold prices leapt to a high of A$650 an ounce in the lead-up to the war in Iraq, but have since sunk back to around A$547.

    The PMG listing would also encourage development of the precious metals segment on the exchange, Humphry said.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.