A couple of new options to buy gold bullion hit the Canadian market this week, feeding a growing appetite for precious metals in their physical form.
BMG Management Group Inc. launched the BMG Gold BullionFund on Monday, an open-ended mutual fund that invests exclusively in physical gold bullion. The new fund requires a $1,000 minimum investment ($2,500 inside an RRSP) and carries a maximum management fee of 2.25%.
“Core holdings of a portfolio should start with fully allocated and
insured physical bullion." said Nick Barisheff, president and CEO of BMG, in a statement.
"There should be no derivatives or hedges of
any kind, nor should there be any third-party claim on the bullion,
counterparty risks or dependency on portfolio managers for trading
strategies.”
Later this week – likely Wednesday – the previously announced conversion of closed–end Claymore Gold Bullion Trust into an open-end exchange traded
fund will also take place.
The new Claymore ETF will carry a management fee of 0.50%, including all operating expenses and custody fees.