Perth Mint Gold ("PMG") is a right created on-market by The Perth Mint to enable you to invest in gold on the Australian Stock Exchange ("ASX"). PMG is structured as a call option in accordance with the ASX’s AQUA Rules, which cover exchange traded funds and structured products. Each PMG entitles you to physically acquire one hundredth of a troy ounce of fine gold and may be exercised by you at any time.
PMGs trade on the ASX under the code PMGOLD and can be purchased by investors only on the ASX.
The ASX price of the PMG is intended to track closely the international over-the-counter market spot price of gold and will be based on the market value of the gold backing a PMG at the time of purchase.
- Government Guaranteed. PMG is issued by Gold Corporation (trading as The Perth Mint), a statutory authority of the Government of Western Australia. The liabilities of Gold Corporation, including its obligations under the PMG Terms and Conditions, are guaranteed under section 22 of the Gold Corporation Act 1987, an Act of the Western Australian Parliament. The Government of Western Australia's domestic debt is rated AA+ by the US international credit rating agency, Standard and Poor's, its highest rating category.
- Fully Backed. The PMG will be fully covered by gold owned by The Perth Mint.
- Low Management Fee. Since 2004 PMG’s management fee has been 0.15% pa, one of the lowest fees worldwide for a gold listed product.
- Physically Redeemable. Unlike many gold listed products, PMG can be redeemed for physical gold. Forms available include any of The Perth Mint’s bullion coin and bar products. Note: investors seeking to immediately acquire physical gold are likely to find it more cost effective and quicker to purchase directly from The Perth Mint or one of its authorised Distributors.
- Guaranteed Market. The Perth Mint, via its Market Maker(s), will ensure reasonable bid and offer prices and volume are maintained on the ASX at all times, in accordance with ASX rules.
Product Disclosure Statement
Investors should read the PMG Product Disclosure Statement ("PDS"), which explains the features and operation of PMG, risks of investing in PMG, summary of tax implications of investing in PMG, and the PMG Terms and Conditions.
Independent Investment Research has rated PMG as Recommended Plus and their report on PMG can be download here.
A general guide to the key Australian tax implications arising for an Australian resident individual taxpayer who acquires PMGs and holds them on capital account is available here: PMGOLD Tax Issues
Investors seeking further information should contact their stockbroker or call The Perth Mint toll free on 1300 651 465 or email to email@example.com.
The old PDS, which is no longer in force, is available here for reference purposes: Old Perth Mint Gold PDS (ASX: ZAUWBA).