Product overview

Your benefits

No mark-up fee. Only the standard transaction fees that are charged for on-exchange securities trading are payable at the time of acquisition. The spreads that apply to purchase and sale correspond to the standard conditions on the global market and are considerably lower than those for traditional gold-based financial products. Furthermore, management or administration fees relating to Xetra-Gold are not incurred. The investor pays the amount of custody fees which he/she has agreed upon with the depository bank.

As with other securities, Xetra-Gold is traded on the most efficient European trading platform, Xetra®. This means: liquid, continuous trading on the regulated market with high transparency, from 9 a.m. until 5.30 p.m. on each trading day.

Xetra stands for liquidity. Day after day, trade after trade.

The issuer uses the proceeds from the issue of Xetra-Gold to purchase gold. The physical gold is held in custody for the issuer in the Frankfurt vaults of Clearstream Banking AG, a wholly-owned subsidiary of Deutsche Börse AG. In order to facilitate the delivery of physical gold, the issuer holds a further limited amount of gold on an unallocated weight account with Umicore AG & Co. KG.

Xetra-Gold tracks the price of gold on a virtually 1:1 basis, and is always up to date.

While in the past, gold was mainly denominated in US dollars per troy ounce, you trade Xetra-Gold in euros per gram.

The investor’s right to receive delivery of the certificated amount of gold is not reduced by management costs or other fees, unlike other investments in gold. 1,000 units of Xetra-Gold will still represent a kilogram of gold in 30 years' time.

Investors always have the possibility of demanding delivery of the securitised amount of gold per bearer note against the issuer. If the investor is not able to exercise this right due to legal restrictions effective for him/her, he/she can demand the cashing of Xetra-Gold from the issuer. In this case, a settlement fee of EUR 0.02 per Xetra-Gold bond will be charged.

Opportunities and risks of Xetra-Gold

Opportunities

Portfolio stabilisation

Xetra-Gold® largely reflects the value of the commodity gold, which develops more or less independently of other securities. Adding Xetra-Gold to the portfolio can help to diversify risk and stabilise performance.

Participating in the performance of the gold price

Given continued strong commodity demand and constant production capacity, Xetra-Gold offers attractive potential returns.

Securitisation

Each Xetra-Gold note grants the investor the right to the delivery of one gram of gold from the issuer or, alternatively, if an investor is not permitted to take delivery of gold for legal reasons, to demand repayment of Xetra-Gold in cash at its repayment value.

Risks

Market risk

For economic purposes, investors buying Xetra-Gold are invested in gold and are exposed to the market risk relating to gold. If the gold price falls, the investor can lose part or all of the capital invested. As there are other price-relevant factors besides the gold price (such as the credit quality of the issuer), the value of Xetra-Gold may deviate from the gold price.

No beneficial ownership to gold

Investors investing in Xetra-Gold do not acquire any beneficial ownership to gold. They acquire the rights securitised in the notes. Investors do not acquire ownership/beneficial ownership or a lien to the gold held in custody in physical form on the issuer’s behalf or to the issuer’s gold dellivery claims.

Risk of loss

The gold held in custody in physical form by Clearstream Banking AG on the issuer’s behalf is exposed to a risk of loss. Should such risk of loss for the issuer materialise, this would probably impair the issuer’s ability to meet its obligations on the notes as there are no other assets available.

Tradability

There is no guarantee that a secondary market in Xetra-Gold will evolve. This harbours the risk that investors may not be able to sell Xetra-Gold in the market, or not at all times.

Early redemption

In case of early repayment, to which the issuer is entitled in certain circumstances, there is the risk for investors that the early redemption amount paid may be lower than the value of Xetra-Gold before the notes were called by the issuer. No claim is made that the risk factors listed above are exhaustive or provide a comprehensive overview of all the risks that can be associated with an investment in Xetra-Gold.

The risk factors listed above are not exhaustive and do not provide a comprehensive overview of all the risks associated with an investment in Xetra-Gold. Before investing in Xetra-Gold, investors should read the prospectus and obtain advice from the personal consultant.