Published Date: February 18, 2024
Author: HANetf
Six Things to Know about Investing in a Gold ETC.
Exchange-traded gold ETCs have revolutionized the way investors can own this precious metal but not all are built alike. Here’s six things investors should know before making an allocation. As always when you invest in gold ETCs your capital is at risk.
1. Physical Gold ETCs: It’s important to check if the gold ETC you are considering actually owns the metal. Some use a ‘swap’ to provide the performance of gold without actually holding it. Gold ETC providers should publish a list of the bars they own on their website giving investors confidence that their money is backed up by a real asset not the credit rating of a bank.
2. Responsible Gold ETCs: The two major gold industry trade bodies The World Gold Council and The London Bullion Markets Association both have guidelines that ensure that gold is sourced and used in a responsible and sustainable way -for example how the gold was extracted who profited the treatment of miners and supply chain labourers and whether there is a risk that the gold has been used for money laundering terrorist financing or supporting war.
Gold bullion bars that were produced after 2012 normally meet these responsible sourcing standards but many older physical gold ETCs will hold bars that don’t meet these requirements. A gold ETC issuer should be able to use the unique serial number on each gold bar to identify if their inventory is up-to-scratch from an ESG perspective.
The Royal Mint Responsibly Sourced Physical Gold ETC (RMAU) is currently the only gold ETC that provides 100% coverage of responsibly sourced bars. RMAU provides a full list of bars it holds on the HANetf website which includes everything you need to identify the bar and its provenance. The bars are also audited regularly by a third-party firm.
3. An illusion of choice: There are a lot of different providers of gold ETCs but it may come as a surprise to know that they almost all use the same two banks to actually store the gold! In fact more than 2/3 of all gold held in ETCs worldwide is stored in the vaults of either JP Morgan or HSBC in London[1].
It’s important for investors to check who is responsible for the custody of the gold in their ETC or they might find they have a lot of eggs in one basket undermining the principles of safety and diversification that motivate many to invest in gold in the first place.
As an alternative The Royal Mint Physical Gold ETC (RMAU) is one of the only gold ETCs to store gold both outside of London and outside of the commercial banking system -RMAU holds its gold in the purpose-built vault of The Royal Mint on the outskirts of Cardiff in Wales- the only ETC with access to this world-class storage facility.
4. Size Matters: When you buy a share of a gold ETC you are buying a certain amount of gold- normally this is 1/10th of a Troy ounce. For some investors this is fine but smaller investors may not be able to buy that much or they may need a more precise tool to fine tune their allocations. In contrast a share of RMAU is equivalent to 1/100th of a Troy ounce making it far more accessible for smaller investors or those who want to top up their exposure incrementally.
5. Can I Touch the Gold? For many investors’ ownership of the actual physical metal is important. You might imagine that owning gold via an ETC entitles you to actually have a shiny piece of gold sadly this is often not the case. Often when you come to sell or redeem the gold ETC you can only get cash or have the gold sent to a pre-approved bank vault- you never get to see it or touch it.
RMAU lets investors take physical delivery (ownership) of gold as bars or uniquely to RMAU bullion coins. The Royal Mint will ship the bullion to an investors home or any other location or store the gold securely in the investor’s name. This is physical gold investing in its most tangible sense.
6. Gold ETCs can be Currency Hedged: Gold is priced in US dollars, meaning unhedged gold ETCs provide exposure to movements in the value of the dollar, alongside the gold price. A hedged ETC ensures the investor is only exposed to gold prices. Gold can be hedged in all manner of currencies, such as GBP, EUR and CHF.
For more information on gold, please visit our Sustainable Gold Hub.
[1] https://www.gold.org/goldhub/data/global-gold-backed-etf-holdings-and-flows.
Four key drivers behind copper’s growth opportunity
September 2026
Three things investors should consider before investing in uranium ETFs
The Merits of Bottom-Up Investing
El Niño’s ripple effects: How a strengthening pacific pattern is moving different asset classes
August 2026
The forces shaping crypto’s next move
Buried Treasure: How Geopolitical Relief Could Unearth Mining Gains
Canada beyond the headlines: the case for energy, financials, and real estate
Beyond a Chatbot: How can emerging-market platforms monetise AI?
July 2026
Lloyd Capital Outlook
Mag 7 to Lag 7: What a tech stumble says about the potential risks of investing in major indices
Natural Gas – growing source of global energy and uncertainty
What is the cost of rebuilding Ukraine?
June 2026
Why are central banks buying what they once sold?
Defence 2.0: How Drones and Cyber are reshaping investments
What investors should consider before investing in Defence ETFs in 2026
Copper’s role in the world has shifted
The quest for the perfect business
How memory is the AI bottleneck
What does AI mean for cyber defence?
Do drones mean the death of defence primes?
Computing’s next big disruption is already here
May 2026
Why can’t silver supply keep up with demand?
How much will the US military spend on drones?
What does the Iran war mean for travel and North American energy?
April 2026
Navigating geopolitics, energy security and structural demand
Global Instability and the Future of European Energy Security
Canada has what the world needs
March 2026
Ukraine could become the West’s solution for rearmament
Iran crisis – four sectors to keep on your radar
From tanks to code: why the next defence boom will be digital
February 2026
Why cybersecurity and defence may be complementary themes?
Preferred shares and outlook for months ahead
Next stop for global travel
The new nuclear age – why physical uranium matters now
Critical Commodities for 2026
Reconciling responsibility with rearmament
January 2026
The New Age of Tech | Tech Megatrend Outlook 2026
The Future of Emerging Markets: 2026 Market Outlook
Shape of the Markets by PT Asset Management
October 2025
Nuclear Energy – why uranium is back in favour
September 2025
Copper’s less known demand driver: defence
Indo-Pacific Rearmament: How much will defence budgets grow by 2030?
How gold is custodied and why it should matter to investors
Travel in 2025 – strong data drives growth
August 2025
Understanding covered call ETFs
Different approaches to covered call ETFs
The opportunity presented by volatility
Heightened demand for defence in the pacific region
Three drivers of the health care sector in 2025
Equal weighted tech – an interview with Anthony Ginsberg
July 2025
Indo-Pacific Defence: What, Why and How?
Magnificent 8 of India – High-growth tech stocks in India to watch
The nuclear revival – a new dawn for uranium investment
June 2025
ETFs are getting active – is your portfolio ready?
May 2025
Three themes shaping the future of energy and ETFs to access them
Sharpening the Blade: How traders use leveraged and short crypto ETPs
Practical Uses for Leveraged and Short Crypto ETPs
April 2025
Why it is not too late for European defence
Understanding Daily Leveraged and Short ETPs
The basics of the covered call strategy: Potential income and capital growth
March 2025
Tariffs, Tensions and the Uranium Opportunity
What would a US withdrawal from NATO mean for European defence?
Holding case study: Rheinmetall
Holding case study: Bae Systems
Three themes that are reshaping the gold market
February 2025
ETFs Are Gaining Ground Over Mutual Funds
Europe’s sidelining by US prompts defence spending reality check
Will Europe be forced to defend itself alone?
December 2024
Uranium 2025: Opportunities in a Structurally Undersupplied Market
Copper 2025: The Red Metal’s Next Chapter After a Year in the Black
Midstream Energy: Dividend Growth and Natural Gas Demand Drive 2025 Outlook
Emerging Markets 2025: The Rise of Digital and E-Commerce Giants
2025: A Year for Disciplined Investing in an Uncertain World
Health care’s Comeback: Why 2025 Could Revive the Sector’s Vital Signs
Trump and Tech: M&A Revival, Trade Shifts, and the Rise of Automation
Bitcoin’s Year Ahead: Why 2025 Could Be a Halving Hit
Clear skies ahead: is the travel industry poised for takeoff in 2025?
Golden Era: Why 2025 Could Shine Bright for Gold and Miners
Global Equities Under Trump: A New Era of Tariffs, Taxes, and Uncertainty
Europe rearms for a world of greater geopolitical risk
November 2024
US Election 2024: The Stakes for NATO and the Defence Industry
October 2024
Do the Mag 7 have too much influence over the S&P 500?
Investors don’t care enough about recycled gold
The Royal Mint: A Millennium in the Making
Currency Hedged Physical Gold ETCs FAQs
Why would you use an ETF over a mutual fund?
Five companies leading India’s internet boom
September 2024
Can gold shine through the market turbulence
August 2024
Taking a U-turn: the world may be ready to embrace nuclear
June 2024
AI adds to positive natural gas outlook
Copper – the defining metal of a new age
Trump stance will force NATO countries to spend more whether elected or not
May 2024
The great travel industry rebound
ESG Mining – Turning a brown industry greener
ESG and defence investing: a balancing act
Dominant Magnificent 7 could lose ground to broader tech rally
The fall of Russian defence spending, and the rise of NATO
April 2024
The AI Revolution – a commodities play?
Recycled gold and traceability
Why investors should consider defence
Copper’s new supercycle | Fresh highs and the long-term story
Bitcoin in 2024 – a monumental year so far
March 2024
Gold price rallies but miners need to catch up
Investing in India’s rise – what makes India an ideal emerging market?
February 2024
Global instability – three potential ways to hedge
Energy Transition: The Metal Elephant in the Room
January 2024
HANetf’s 2024 Outlook
December 2023
Two Ways to Invest in Low-carbon Gold
March 2023
US ETFs are not the only ETF wrapper with a tax advantage; Irish domiciled ETFs have one too!
Making Gold sustainable with HANetf’s Recycled Gold ETC and ESG Gold Mining ETF
February 2023
Article | There is no Walt Disney Company in crypto yet…
January 2023
Gold Shining in 2023?
HANetf 2022 wrap up and outlook for 2023: Where did the inflows go?
Key Dates for Digital Assets in 2022
Article | The Merge and Ethereum – what you need to know
September 2022
Article | Why small ETFs are not necessarily less liquid
February 2022
Solar Energy 101 | Understanding the Solar Energy UCITS ETF
June 2021
The Royal Mint ESG Credentials
May 2021
The Royal Mint Physical Gold ETC (RMAU) Frequently Asked Questions
April 2020
The Importance of the Physical Gold ETC Custodian | RMAU
March 2020
Responsible Gold Bars & Physical Redemption | RMAU | The Royal Mint Physical Gold ETC
Select Your Country
Select Your Investor Type
Choose a brokerage
Choose a product
You are now leaving HANetf's website and accessing a third-party website. HANetf may provide access to information, products, or services offered on websites that are owned or operated by other companies ("third-party websites"). We provide this access through the use of hyperlinks that automatically move you from a HANetf website to the third-party site.
While we do our best to provide you with helpful, trustworthy resources, HANetf cannot endorse, approve, or guarantee information, products, services, or recommendations provided at a third-party website. Since we may not always know when information on a linked site changes, HANetf is not responsible for the content or accuracy of any third-party website. HANetf shall not be responsible for any loss or damage of any sort resulting from the use of a link on its websites nor will it be liable for any failure of products or services advertised or provided on these linked sites.
HANetf offers you links on an "as is" basis. When you visit a third-party website by using a link on a HANetf site, you will no longer be protected by the HANetf privacy policy or security practices. The data collection, use, and protection practices of the linked site may differ from the practices of HANetf sites. You should familiarize yourself with the privacy policy and security practices of the linked website. Those are the policies and practices that will apply to your use of the linked website, not the HANetf policies and practices.
Here are some tips to help you tell if you have left a HANetf website:
Important Notice: HANetf is a provider of Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs). We do not sell investment products directly to individual investors. Our funds are available through regulated investment platforms and brokers. Our only official website is www.hanetf.com. Any other domain is not affiliated with or authorised by HANetf in any way. If you suspect fraudulent activity, please contact your local financial regulator and/or the police and report the website or individual involved.