Nasdaq Dubai will list Dubai Gold Securities under the name of "Dubai Gold" today. Trading will be according to spot gold prices.
According to a note by MAC Capital Advisors, each gold security will represent ownership of a 10th of an ounce of gold. Gold is stored on behalf of investors by HSBC, for a fee of 0.4 per cent per year.
"Initially, a creation basket of 50,000 shares will be issued. DGSLLP, the issuer, retains the ability to issue up to a billion shares according to market demand. The shares are expected to initially trade at a 10th of the spot gold price in increments of $0.10. Liquidity for Dubai Gold is virtually unlimited as it is backed by the London OTC gold market," the note said.
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