FILE PHOTO: a sign is seen outside the Royal Mint, in Cardiff on March 5, 2011. REUTERS / Toby Melville
LONDON (Reuters) – Britain’s 1,100-year-old Royal Mint said on Monday that it will launch a product traded this week supported by physical gold held in its security room in Wales, which will be traded on the London Stock Exchange.
Gold-traded products, which issue metal-backed securities that they buy and store on behalf of investors, have become big business since the first one was launched in the early 2000s.
They currently hold nearly 3,000 tons of gold worldwide, valued at around $ 140 billion in current prices, according to the World Gold Council.
The mint has stated that its product will have a management fee of 0.22% per annum of the value of an investment, placing it towards the end of the low-cost market.
The Royal Mint was forced to freeze plans for a digital gold token in 2018 after the United Kingdom government vetoed a proposal to have it exchanged on a cryptocurrency exchange, Reuters reported at the time .
Reporting by Peter Hobson; Editing by Jan Harvey