New Gold ETF's Opening Up Worldwide!

Remember what happened after the Gold ETF (GLD) opened in the United States? The demand for cash gold went up dramatically, driving the "paper Gold" flippers out of their short positions.

Now there are ETF's opening up world-wide, in places where the demand for Gold is strong and the need for Gold as a protection against geo-political uncertainty and currency debasement is strong.

Here are stories about two of the soon-to-open ETF's in India and Japan.

Tokyo bourse to offer ETFs linked to prices of precious metals - report

TOKYO (AFX) - The Tokyo Stock Exchange is considering listing exchange-traded funds (ETFs) linked to the prices of gold, silver and other precious metals using know-how it will obtain from the New York Stock Exchange, the Nihon Keizai Shimbun reported.

The NYSE will provide the TSE with expertise on how to manage the funds as part of the broad business partnership the two bourses concluded last week, it said.

Currently, the Tokyo exchange offers 11 ETFs, all of which are linked to a stock price index. This will be the first time for the TSE to list financial products linked to precious metals prices.

The new funds may be listed as early as this summer, with the trading commission to be set lower than for other types of investment trusts, the report said.

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India’s 1st Gold ETF opens on Feb 15
India Infoline News Service / Mumbai Feb 02, 2007 11:48

Benchmark Mutual Fund is the first AMC to launch India’s first open-ended fund Gold BeEs, a Gold Benchmark Exchange Traded fund.

India’s first Gold Exchange Traded Fund (Gold ETF) will be open for subscription on February 15. Benchmark Mutual Fund is the first Asset Management Company (AMC) to launch India’s first open-ended gold fund called Gold BeES. The new fund offer (NFO) will close for subscription on February 23.

After the closure, within 30 days the fund proposes to list on the National Stock Exchange (NSE). The scheme intends to provide returns that closely correspond to returns provided by domestic prices of gold by investing 90% in physical gold.

The minimum subscription amount for the scheme is Rs10, 000 and in multiples of Rs 1,000 thereafter. Units will be allotted within 30 days from the date of NFO closure up to three decimal points. Each unit of Gold BeES will be approximately equal to the price of one gram of gold.

Investors would be able to buy and sell gold units compulsorily in dematerialized form. Investors wishing to buy gold units in this scheme will require a beneficiary account with any depositary participants of NSDL or CDSL. They will also have to indicate in the application the DP ID, DP name and the beneficiary account number to the DP at the time of purchasing the units.

The fund will be managed by Vishal.Jain.

Benchmark AMC has appointed the Bank of Nova Scotia as the custodian for the fund.

The fund will charge an entry load during new fund offer in following manner.

Investment	Load
Rs 10,000-49,99,000	1.5%
Rs 50,00,000 to Rs. 1,99,99,000	1.0%
Rs. 2,00,00,000 to Rs. 4,99,99,000	0.5%
Rs. 5,00,00,000 and above	NIL