Not The Onion: Two New Paper Gold Derivatives Products Launch Tuesday In NY, “GBUG” & “SBUG”

Need to get more people into the paper casino? How about a “zero fee” precious metals ETF from Barclays? But wait, there’s more!

Editor’s Sarcastic Note: Clearly there’s no conflict of interest here:


No fees with Barclays new gold and silver funds — and no gold and silver either

by Chris Powell of the Gold Anti-Trust Action Committee (GATA)

Barclays Launches First Zero-Fee Gold Investment Product

By Chris Flood
Financial Times, London
Monday, October 7, 2019

UK bank Barclays has muscled into the price war in the gold investment market with the launch of the world’s first zero-fee precious metals exchange traded products, which is due to launch in New York on Tuesday.

The aggressive move by Barclays will push competitors, including BlackRock and State Street, to respond with fee cuts at a time when demand for gold from investors is nearing an all-time high.

The Barclays iPath Gold exchange-traded note (ETN) and iPath Silver ETN, which will use the tickers GBUG and SBUG respectively, are structured as unsecured debt obligations issued by the UK-listed bank. Both ETNs will use derivatives to match the total return provided by three-month forward gold and silver prices. Most existing competing products track the spot price and are backed by physical holdings of gold and silver that sit in secure bank vaults. …

… For the remainder of the report:

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