In Focus: The Royal Mint’s Responsibly Sourced Physical Gold ETC
Category: Invest
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(Ticker: RMAU (USD); RMAP (GBP)
The Royal Mint’s responsible gold fund now features a majority allocation to recycled gold bars, with a c.53% weighting (Gold and climate change: An introduction | World Gold Council). After a weaker 2023 for the European gold exchange-traded commodity (ETC) sector, RMAU has bucked the trend year to date with positive net inflows, versus a sector average 2.7% outflow.
The fund, which was launched in February 2020 and is still somewhat a junior entrant in the sector, has grown rapidly to $860m in assets. The unique sustainability profile of the fund has drawn interest from parts of the market that perhaps wouldn’t have previously allocated to gold. It’s this profiling which The Royal Mint aims to build upon, across all of its precious metals products.
RMAU not only has a dedicated allocation to 100% certified recycled gold bars, but also commits to holding a minimum standard of 2019 (and newer) LBMA Good Delivery List bars; 2019 marking a watershed year for environmental, social and governance (ESG) considerations within the responsible sourcing of gold (About Good Delivery | LBMA). The Royal Mint’s wider sustainability initiatives provide further appeal to the investor base, with the business making strides to ensure we ‘do business the right way’.
In 2023, we established a world-first plant in South Wales to recover gold from United Kingdom electronic waste. The pioneering facility will help address a growing environmental issue, support jobs and the development of skills in Britain, and create a new source of high-quality precious metals for the business. (The Royal Mint to build plant to turn UK’s electronic waste into gold (circularonline.co.uk)). The Royal Mint is using patented chemistry – created by Canadian-based Excir – to recover gold within the circuit boards of laptops and mobile phones. The unique chemistry is capable of recovering over 99% of the precious metals contained within electronic waste – selectively targeting the metal in seconds.
The Royal Mint also has a local energy centre (LEC), combining a two-megawatt solar installation, two wind turbines, industrial battery storage and a combined heat and power (CHP) plant. These on-site sustainable energy solutions have meant the business can satisfy up to 70% of its energy needs from ‘green’ energy sources. (The Royal Mint unveils renewable energy centre (sustainability-beat.co.uk)).
This year, The Royal Mint has become the first sovereign mint and only the second bullion manufacturer globally to commit to net zero by having its carbon targets validated by the Science Based Targets initiative (SBTi) (The Royal Mint achieves validation of its net zero goals by the Science Based Target initiative | The Royal Mint).
The double layering of the mint’s sustainability initiatives married with the RMAU-specific sustainability profile means the fund is gaining real traction with investors looking to make a long-term, strategic allocation to gold within their investment portfolios. (Unlocking the Potential: The Royal Mint gold-backed fund is eligible for a stock and shares (investment) ISA | The Royal Mint). It’s also available for inclusion in stock and shares individual savings accounts (ISAs) and self-invested personal pension (SIPP) schemes, via the major trading platforms, ensuring the tax efficiency of your gold allocation into the future.
Notes
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Sources
The Royal Mint to build plant to turn UK’s electronic waste into gold (circularonline.co.uk)
The Royal Mint unveils renewable energy centre (sustainability-beat.co.uk)
Physical Gold ETC (hanetf.com)
Gold and climate change: An introduction | World Gold Council
