Frequently Asked Questions

FAQ about GPF Exchange Traded Commodities

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GPF ETCs are exchange-traded-commodities linked to the performance of the metal they represent.

GPF ETCs are linked to Gold, Silver, Platinum, Palladium, Copper and Nickel.

GPF ETCs offer investors a means of investing in physical metals without the necessity of taking delivery of physical metals, and to enable investors to buy and sell GPF ETCs on stock exchanges where they are listed for trading.

Yes. GPF ETCs are physically backed by the metals they are linked to.

The metal used to back GPF ETCs is held in secure vaults on behalf of the issuer Ridgex in locations in the United Kingdom, the Netherlands, and Switzerland.

Precious Metals are held in segregated allocated accounts.
Base Metals are held in segregated metal custody accounts.

The primary custodian is Tokentrust AG based in Switzerland.

Precious metal can be identified by the custodian based on a combination of criteria: 

  1. the name of the refiner;

  2. the serial number; 

  3. its year of manufacture; 

  4. its weight and/or;

  5. its composition and purity (“assay”).  

Base metal can be identified by the custodian based on a combination of criteria: 

  1. the name of the producer;

  2. the brand;

  3. the lot number;

  4. the bundle number;

  5. the gross and net weight and/or;

  6. the quality of the Metal.

Ridgex publishes a list of the specific bars of physical precious metals identified by their serial numbers (the “Bar List”) that are held in allocated accounts on www.ridgexmetals.com.

Ridgex publishes a daily list of the specific lots of physical base metals identified by their lot and bundle numbers (the “Lot List”) that are held in off-warrant accounts on www.ridgexmetals.com.

Precious metals are stored in secure vaults by The Brink’s Company, United States and ICBC Standard Bank plc, United Kingdom.


Base metals are stored in secure vaults by ICBC Standard Bank plc, United Kingdom and Metaal Transport B.V., the Netherlands.

Yes. In the case of GPF Physical Gold ETC, ETC holders are entitled to receive delivery of physical bars of gold upon request and subject to certain conditions.

Yes.

Precious metal held to back GPF ETCs meet the “Good Delivery” standards set by the London Bullion Market Association (the “LBMA”) in the case of gold and silver and the London Platinum and Palladium Market (the “LPPM”) in the case of platinum and palladium.

Base metals meet the quality standards set by the London Metal Exchange (the “LME”).

The quality assurance standards set out by the LBMA, LPPM, and LME all go a long way to ensuring high standards in the provenance of the metal. Investors are able to verify the bars of physical precious metals related to provenance of the specific bar of metal including the date and location where the metal was mined and smelted, transportation to and between vaults. Transparency empowers the investor to understand any environmental or social impact that the bar has had over its lifetime.

Whilst these standards place these ETC Securities at the forefront of responsible initiatives, there is no one-size-fits-all approach to ESG and SRI requirements. However, every measure has been taken to ensure that investors have the ability to make decisions for themselves as to whether these products meet their own standards.

Global Palladium Fund, L.P. is an initiative for increasing market transparency of palladium. GPF aims to achieve these objectives by means of cooperation of major holders of the existing palladium stockpile, promotion of the industrial demand for the metal, and reduction of overall volatility of the palladium market.

GPF is wholly owned by Norilsk Nickel.
Norilsk Nickel is a diversified mining and metallurgical company, the world's largest producer of nickel and palladium and a leading producer of platinum, cobalt, copper and rhodium. In addition, Norilsk Nickel produces gold, silver, iridium, selenium, ruthenium and tellurium. The production units of Norilsk Nickel are located in Russia at the Norilsk Industrial District and on the Kola Peninsula, as well as in Finland.

More information about Norilsk Nickel can be found on its website at www.nornickel.com.

Metal Entitlement is the amount of physical metal backing the ETC security. Metal Entitlement is reduced daily by a quantity of Metal equal to the Total Expenses Ratio (applying the per annum rate and dividing by 365).

In the case of gold, the amount is expressed in fine troy ounces rounded to three decimal places.
In the case of silver, platinum and palladium, the amount is expressed in troy ounces rounded to three decimal places.
In the case of Copper and Nickel, the amount is expressed in metric tonnes rounded to eight decimal places.

The Metal Entitlement for GPF ETCs is published on www.ridgexmetals.com on each Business Day.

Investors can buy and sell GPF ETCs on stock exchanges on which they are admitted to trading.

GPF ETCs are listed on LSE, Euronext, Xetra, and SIX.

The cash value is equal to the metal entitlement multiplied by the spot price of the relevant physical metal. This does not take into consideration the bid/offer spread on exchange.

The “spot price” of Precious Metals is based on an average of all the buy and sell offers in the market for that specific metal. The “spot price” Base Metal is the LME Cash Settlement Price, which is the last cash offer price for the relevant Base Metal during the day’s trading.

The spot price is published by the LBMA (for gold and silver) or the London Metal Exchange (LME) (for platinum, palladium, copper and nickel) on their websites.

All financial investments involve an element of risk. The value of GPF ETCs changes over time by virtue of the movements in the price of the underlying physical metal and an investor may not get back the full amount originally invested.

The price of GPF ETCs is a function of supply and demand amongst investors wishing to buy and sell and the bid/ask spread quoted by market-makers on the stock exchange.

The bid/ask spread will vary from time to time based on trading volume and market liquidity. The spread generally decreases if the ETC Securities have high trading volume and market liquidity, and increases if GPF ETCs have low trading volume, market liquidity and market volatility.

FAQ about Digital / Tokenization

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GPF ETCs themselves are exchange-traded-commodities (ETC) backed by physical metal and linked to the performance of that metal. GPF ETCs trade on stock exchanges the same as stocks.
The metals held by GPF ETCs are tokenized as digital assets using Digital Ledger Technology (DLT) powered by Atomyze. Transparency within the Atomyze ecosystem ensures everyone to have a clear view of the updated ledger of ownership records.  

Atomyze is a tokenization platform, developed using Hyperledger Fabric blockchain technology. The ecosystem facilitates the tokenization of metals and enables these digital assets to be traded in a simple and secure way with clear records of ownership.

Tokenization refers to the process of converting real assets into digital assets. The digital assets are then linked to tokens. 

Hyperledger Fabric is an IBM technology. Rather than an open, permission-less system, Fabric offers a scalable and secure platform that supports private transactions and confidential contracts. 

Accessibility: tokenized assets can be accessed globally, 24/7 from anywhere in the world.

Immutable: token ownership cannot be removed. In case of dispute, conflicts can be solved quickly by looking at immutable records of ownership.

Transferability: tokens can easily be transferred from one person to another.

Transparent: as each record of ownership will be maintained on a shared and immutable ledger, no one can

Cost-effective: tokenized assets reduce fees as the involvement of intermediaries is removed that often restrict investment accessibility. 

Fractional Ownership: when assets are digitised, they become highly divisible. Thus, investors can invest in small percentages of tokenized assets thereby improving liquidity

Quick and cheaper transactions: the transaction and transfer exchange process is automated which fastens the deal execution with lower transaction fees.

Broader Investor Base: fractional ownership of digital assets broadens the investor base. Tokenization would open opportunities for a new set of investors and allow them to diversify their investment portfolio into assets that they could not afford previously.

DLT is a digital system that records transactions chronologically while storing and verifying them simultaneously across different locations and nodes (computers and devices). Unlike traditional databases, all DLTs are decentralized. Information is not stored within a central location, but instead digital copies are dispersed and saved across the network, eliminating a single source of failure.