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Barclays is back in precious metals offering no-fee ETNs for gold and silver

Kitco News

(Kitco News) - More than three years after exiting the gold market, Barclays is back, offering the first-ever no-fee exchange traded notes for gold and silver.

Making the announcement Monday, the London Bank said that its iPath Gold ETNs (NYSE: GBUGS) and iPath Silver ETNs (NYSE: SBUGS) offer investors exposure to commodity futures by tracking the performance of two Barclays indices: the Barclays Gold 3 Month Index Total Return and the Barclays Silver 3 Month Index Total Return.

“By creating the first no-fee ETPs to track the gold and silver market, we are building on our pioneering reputation by delivering a product that we believe deserves consideration by any asset allocator seeking exposure to precious metals,” said Michael Hosana, Managing Director and Head of Quantitative Index Strategies Trading, Americas.

“Today marks another exciting day in the evolution of Barclays’ iPath platform with the introduction of the first-ever ETNs that have no investor fees, and the first-ever no-fee ETPs offering exposure to precious metals,” added Ian Merrill, Managing Director and Head of US Equity Derivative Sales.

The news come after more than three years after Barclays announced that it was leaving the gold bullion market and selling its bullion vault ICBC Standard Bank.

The bank left the gold market after it was fined for its involvement in manipulating the daily fixing process. The bank was fined $44 million in 2014 for failing to have in internal controls place that allowed a trader to manipulate the setting of gold during the daily gold fix.

Barclays’ reemergence in the gold market comes as prices trade above $1,500 an ounce, down from last month’s six-year high. The gold market is seeing its best gains in more than three years.

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