Two leaders in hard assets investing, Van Eck Global and Merk Investments, have separately filed registrations to issue new "redeemable" gold trusts in ETF format. (Van Eck also has filed for a similar redeemable silver trust.) These ETFs would fill a gap that currently exists in the precious metals space – between physical ownership and the existing gold/silver ETFs.
See also: ETF assets reach record $191 billion
In the giant $62 billion SPDR Gold Shares ETF, for example, creation and redemption units are 100,000 shares, and the creation/redemption process is limited to a handful of institutional authorized participants. The only way other GLD investors can liquidate is to receive the current value of their shares in cash.
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