Nico (@WolfOfPoors) on getquin

1Mon·

I have a question for the community:

I'm currently looking for an ETC for gold. So far I've mostly focused on $WGLD (+0.01%) and $EWG2 (-0.3%) so far. Unfortunately, my custody account offers me no fee advantage with either option. In addition, the $WGLD (+0.01%) seems to allow physical delivery of the gold in 1g denominations but probably has a TER of 0.16%. The $EWG2 (-0.3%) only allows delivery in 1g through additional fees. To my questions:

How can the $EWG2 (-0.3%) have no fees, how do they earn money?
In addition, bearer bonds are not subject to deposit protection. I am therefore wondering what the insolvency risks could be, since everything is collateralized with gold anyway. Robbery of the gold?
What is the difference between EUWAX Gold I and EUWAX Gold II?

Thank you! ☺️

6 Comments

Stefan@InvestmentPapa

1Mon

1. the money is collected through the fees you mentioned for u100g delivery and through the slightly different price per gram when buying shares in the ETC. Example: 1g gold on the exchange for 81€. When buying via the EGC €81.20. Plus the associated fees on delivery.
2. exactly. The risks consist of embezzlement, mismanagement or simply (and this is the most acute
most acute case) by a loss in the price of the gold. E.g. you bought gold for 5000€, gold is suddenly only worth 1€. You can imagine the probabilities yourself.
3. the difference lies in the investment behavior of investors. With EUWAX 2, delivery to the nearest gram is possible, which can also have a corresponding impact on tax treatment.

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~ Michael 💎 🏅@Michael-official

1Mon

@InvestmentPapa

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Chris@Psychedelic_Sunflower

1Mon

Does one share of WGLD represent 1/10 ounce of gold or how does the price come about?

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