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Gold ETFs & the World's Largest Gold Coin

Neena Mishra
  • (1:00) -  Biggest Gold Coin In The World: Moving and Insuring the Coin
  • (5:45) - The Perth Mint: The Australian Gold Mining Industry
  • (7:20) - What Can We Expect From Gold Prices Moving Forward?
  • (10:00) - Perth Mint Physical Gold ETF: AAAU
  • (13:45) - How Much Gold Should Investor Diversify Into Their Portfolios    
  • (15:40) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with Jerry Hicks, manager with the Perth Mint.

Last month, the world’s largest gold coin, valued at about $47 million, traveled to the US from Australia to make its NYSE debut. The Perth Mint flew this coin on a publicity tour for their physically backed gold ETF—the Perth Mint Physical Gold ETF AAAU.

The massive coin measures about 32 inches in diameter and is almost 5 inches thick. The Perth Mint wasn’t particularly worried about its theft since it weighs a whopping 2,200 pounds. Most people do not know how dense gold is and Hollywood movies get it so wrong!

Gold weighs approximately 19 times as much as an equal volume of water. Back in the day of the gold rush, the density of gold played an important role in the panning process according to the Physics Factbook.

A sheet of gold can be made thin enough to be transparent since it’s very malleable. That’s why pure 24 carat gold is usually mixed with other metals in jewelry for more durability.

Gold prices have surged to their highest level in more than six months thanks to rising geopolitical uncertainty and dovish tone from global central banks. What lies ahead for the precious metal?

We also discuss why gold deserves a place in investment portfolios and how much gold investors should own.

The Perth Mint, one of the largest refiners in the world, is owned by the Government of Western Australia.  In addition to being one of the cheapest gold ETFs, AAAU is the only gold ETF backed up by a government-guaranteed mint. It also allows investors to redeem their shares for gold coins and small bars.

Physically backed gold ETFs provide low-cost, convenient exposure to the metal. The SPDR Gold Trust GLD, the largest gold ETF, has an expense ratio of 0.40%.

Many cheaper options are now available to investors. The SPDR Gold MiniShares Trust GLDM, GraniteShares Gold Trust BAR, Aberdeen Standard Physical Gold Shares ETF SGOL and AAAU charge between 0.17% and 0.18%. 

How is AAAU different from other gold ETFs? Turn into the podcast to learn more and also visit AAAUETF.com.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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iShares Gold Trust (IAU): ETF Research Reports
Aberdeen Standard Physical Gold Shares ETF (SGOL): ETF Research Reports
SPDR Gold Shares (GLD): ETF Research Reports
Perth Mint Physical Gold ETF (AAAU): ETF Research Reports
GraniteShares Gold Trust (BAR): ETF Research Reports
SPDR Gold MiniShares Trust (GLDM): ETF Research Reports
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Zacks Investment Research