March 7, 2013 / 9:27 PM / 5 years ago

Van Eck files to launch redeemable U.S. gold, silver ETFs

NEW YORK, March 7 (Reuters) - U.S. asset manager Van Eck Global has filed with the Securities and Exchange Commission to launch two gold and silver exchange-traded funds that will allow investors to redeem their shares for physical precious metals.

The two new products will add to Van Eck’s line-up of commodities-focused ETFs, including its Gold Miners ETF and the Junior Gold Miners ETF and mutual funds.

Van Eck filed its regulatory papers late on Monday.

While holdings of major silver ETFs have hovered near all-time highs on strong interest by private investors, gold ETF holdings have recently fallen sharply due to a better global economic outlook.

Most precious metals ETFs do not allow their shareholders to take physical delivery, and those that do often charge a higher management fee to offset the extra costs related to physical redemption.

There are currently about 20 major global gold- and silver-backed ETFs, and dozens other exchange-traded products backed only by the good faith of banks and brokerages.

Similar to the proposed Van Eck ETFs, Canada’s Sprott Inc operates a basket of precious metals exchange-traded funds that allow investors to redeem their shares for physical metals.

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