Global X Metal Securities Australia Limited has issued a prospectus for five classes of securities tracking gold, silver, platinum, palladium, and a precious metals basket. The securities are physically backed, traded on ASX under AQUA Rules, and managed by JPMorgan Chase Bank.
- Five Metal Securities classes tracking physical precious metals
- Metals held in allocated form by JPMorgan Chase custodian
- Trading on ASX AQUA market with Authorised Participants
- Management and redemption fees detailed
- Comprehensive risk and tax disclosures included
Metal Securities offer direct exposure to physical precious metals
Global X Metal Securities Australia Limited (ASX:ETP) has issued a new prospectus dated 13 August 2026, detailing the offer of five distinct classes of Metal Securities. These structured products provide investors with returns linked to the spot prices of gold, silver, platinum, palladium, and a diversified basket of these metals, minus daily management fees. The securities aim to deliver exposure to physical bullion without the hassles of direct trading or storage.
Physical metals securely held by JPMorgan Chase in allocated form
Each Metal Security is fully backed by physical metals held in custody by JPMorgan Chase Bank, N.A., either directly or via sub-custodians, adhering to London Bullion Market Association (LBMA) standards for gold and silver and London Platinum and Palladium Market (LPPM) standards for platinum and palladium. Metals are stored as Good Delivery bars in allocated accounts, ensuring investors have beneficial ownership of specific bullion bars. Temporary holdings in unallocated form occur only during creation or redemption processes, representing a credit risk against the custodian.
ASX AQUA listing facilitates liquidity with Authorised Participants
Metal Securities trade on the ASX under AQUA Rules, a framework tailored for products backed by underlying assets rather than company financials. Only Authorised Participants, licensed banks or securities houses approved by Global X, may apply for or redeem Metal Securities directly with the Company. Other investors must transact on the ASX secondary market. Global X commits to maintaining at least two Authorised Participants to support liquidity and minimise tracking errors between the securities’ market price and underlying metal prices.
Fees, risks, and tax considerations outlined in detail
The prospectus specifies annual management fees ranging from 0.40% for gold and the precious metals basket’s gold component, to 0.49% for silver, platinum, palladium, and the basket’s other metals. Application and redemption fees are fixed at A$2,000 per transaction regardless of size. Key risks highlighted include bullion price volatility, potential shortages of physical bullion especially in platinum and palladium markets, custody risks, tracking errors, and the limited recourse nature of the securities.
Tax treatment is complex, reflecting the bare trust structure where investors hold beneficial interests in the bullion alongside redeemable preference shares. The document cautions investors to seek professional advice, noting that management fees reduce metal entitlements daily and are treated as disposals for tax purposes. The Company does not pursue sustainable investment objectives, nor does it market these securities as ESG products.
Market context and governance
Global X Metal Securities Australia Limited is a wholly owned subsidiary of Global X (AUS) Pty Limited, administered by Global X Management (AUS) Limited, part of the Mirae Asset Global Investments Group. The Company has been listed on the ASX since 2003, pioneering exchange-traded physical gold products. Directors include industry veterans with extensive experience in ETFs and asset management.
The prospectus also provides a comprehensive overview of the precious metals markets, supply and demand dynamics, and historical price performance, underscoring the economic and geopolitical factors influencing bullion prices. Custody arrangements, including sub-custodian details and insurance provisions, are disclosed transparently, with JPMorgan Chase Bank’s role and regulatory status outlined.
Investors should note that trading liquidity depends on market makers and Authorised Participants, and that compulsory redemptions can occur with 30 days’ notice. The securities’ structure under AQUA Rules means some standard ASX listing requirements do not apply, such as minimum spread and corporate control rules.
Bottom Line?
These Metal Securities offer a sophisticated route to physical precious metals exposure but hinge on custodian performance, market liquidity, and evolving tax interpretations.
Questions in the middle?
- How will market volatility in platinum and palladium affect tracking and liquidity?
- What contingencies exist if JPMorgan Chase or sub-custodians face operational disruptions?
- How might upcoming tax reforms impact the bare trust structure and investor returns?