(Bloomberg) -- The party in gold exchange-traded funds is raging so hard that the Australian government is trying to crash it.
With holdings in gold-backed ETFs at the highest level since 2013, New York Stock Exchange Arca Inc. is seeking to list the Perth Mint Gold ETF Trust, according to a U.S. government filing. Gold Corp., a Western Australian state government-owned entity, will store the fund’s gold and facilitate transfers, including shipments, according to the filing. Oklahoma City-based Exchange Traded Concepts will be the administrative sponsor.
The ETF will “provide investors with the opportunity to invest in gold through the shares,” which they can surrender later in exchange for the physical metal, according to the filing published in the Federal Register. All the bullion held in the fund will be guaranteed by the Western Australian state government, the filing showed.
Money has been piling into gold-backed ETFs, with investors lured by the biggest annual rally in seven years. The precious metal is up almost 3 percent in the spot market this year, sustaining the surge in 2017, as the dollar weakened. Geopolitical tensions and uncertainties over President Donald Trump’s policies have also spurred haven demand for bullion.
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