Low cost access to physical silver bullion
ETFS Physical Silver (ASX code: ETPMAG) offers low-cost access to physical silver via the stock exchange and avoids the need for investors to personally store their own bullion.
ETPMAG offers investors a simple, cost-efficient and secure way to access silver by providing a return equivalent to the Australian dollar price movement of silver less a daily management fee.
ETPMAG is backed by physically allocated silver bullion held by JPMorgan Chase Bank, N.A. (the Custodian) in London. Only metal that conforms with the London Bullion Market Association's (LBMA) rules for Good Delivery is accepted by the custodian. Each physical bar is segregated, individually identified and allocated which means there is no credit risk. Investors can choose to redeem units for the physical holdings.
ETPMAG is an exchange traded commodity ("ETC") that can be created and redeemed on demand (by Authorised Participants). It trades on the stock exchange just like a share and is settled and held in ordinary brokerage accounts.
Why Consider ETPMAG?
Low-cost access to physical silver bullion
Silver is traditionally used as a store of value and often seen as an inflation hedge
Provides exposure to the supply and demand dynamics for silver in areas such as alternative energy generation and battery production
ETPMAG units are redeemable directly with the issuer for the underlying bullion
Liquid and transparent
Where is the metal stored?
The physical silver bullion for ETPMAG is held in the vault(s) of JPMorgan Chase Bank, N.A. in London. The vault is audited twice yearly by the auditor Inspectorate. All audit reports are made available in the Resources section below. Each silver bar in the vault is itemised in a bar-list which is available at the top of the web page.
How is the management fee paid?
Each ETPMAG unit comes with an entitlement to an amount of physical bullion. The entitlement is reduced daily by a management fee of 0.49% per annum. The exact metal entitlement per unit is published on the ETF Securities website daily.
How do I redeem units for the physical metal?
To redeem for physical silver, an investor needs to:
Complete and send a redemption form.
Open an unallocated bullion account with an authorised bullion dealer.
Pay a redemption fee of $1,000 for each redemption. Depending on the quantity of the order, investors may find that selling units in the secondary market is a more cost-efficient option, especially for small quantities.
How can I use ETPMAG in a portfolio?
Like gold, silver tends to perform well during periods of equity market volatility. Silver can therefore be used to enhance a portfolio’s risk/return characteristics through diversification. Silver can be viewed as an alternative asset.
Silver has been used as a store of value, and because it is independent of any fiat currency can be used as an inflation hedge.
Silver can offer a growth exposure in relation to industrial demand in the areas of battery storage and medical devices, among other industries.
|Date (NAV)||23 Oct 2020|
|Fund inception date||30 Jan 2009|
|Management Costs (% p.a.)||0.49|
|Maximum cost recoveries (% p.a.)||0.00|
|Legal Form||Redeemable preference share with an entitlement to metal|
|Vault Location||London, UK|
|Bloomberg Code||ETPMAG AU Equity|
|Trading hours||10:00AM – 4:00PM|
|Issuer||ETFS Metal Securities Australia Limited|
|Custodian||JPMorgan Chase Bank, N.A.|
|Registrar||Computershare Investor Services Pty Limited|
|Trustee||Gold Bullion Nominees|
|Benchmark||LBMA Silver Price|