Exchanging SGBS & WGLD for physical gold
WisdomTree is pleased to partner with Metalor Technologies SA (“Metalor”) to expand its range of physical delivery options to allow investors in WisdomTree Physical Swiss Gold Securities (“SGBS”) and WisdomTree Core Physical Gold (“WGLD”), each issued by WisdomTree Metal Securities Limited, to redeem their investment directly with the issuer in exchange for physical gold.
Each SGBS and WGLD security represents a right to receive the relevant metal entitlement in physical gold (less any applicable deductions).
Investors can redeem SGBS and (through the registered holder of the securities) direct the issuer, to deliver the physical gold to a local German bank with whom they have a banking or brokerage relationship.
Investors can redeem WGLD and (through the registered holder of the securities) direct the issuer, to deliver the physical gold to a credit institution in such jurisdictions as agreed between the issuer and Metalor – currently being the UK, Germany and Switzerland.
Redemption instructions for different investor types
Select the investor type that best applies to you:
Step 1: Please take time to read the FAQs, Terms and Conditions for the Exchange of Physical Gold and the exchange form.
Step 2: Confirm who the Registered Holder is. Given that most individual investors hold their SGBS/WGLD securities through a brokerage account, very few individual investors will be the registered holder. It is best to speak directly to your broker to discuss how your securities are held. If you believe you are a registered holder, you can contact WisdomTree directly at swissgoldphysicalredemption@wisdomtree.com to confirm.
Step 3: VERY IMPORTANT: Both you and your client will need to provide the relevant customer due diligence/anti-money laundering ("CDD/AML" documentation). We cannot begin the process until we have received the required CDD/AML information and performed the necessary review. For the detailed requirements, please refer to the CDD/AML documentation.
Once we complete the CDD/AML process, you will be able to submit the exchange form.
Step 4: Ask the Registered Holder in CREST to complete the exchange form. Your broker will need to provide certain details including:
- The Registered Holder’s CREST account details (Part A of the exchange form). This will allow us to match the broker’s trade in CREST when they redeem the relevant SGBS or WGLD securities;
- The name of the registered holder; this will most likely be the name of a broker’s nominee or depositary account (Part B);
- Your name as beneficial owner (Part C)
- The number of securities you wish to redeem of either SGBS or WGLD. You will need to give this information to your broker and/or the Registered Holder (Part D);
- You will need to make clear which bank you wish to have your bullion delivered and provide relevant account details and a contact name at that bank.
- The Broker and/or the Registered Holder will need to provide a contact number and sign (Parts H and I).
Your Broker and/or Registered Holder can send the exchange form by email or post:
Email: wisdomtreeadminjsy@apexgroup.com
Phone: +44 1534 722 787
Post:
The Administrator,
WisdomTree Physical Swiss Gold Securities Redemption,
IFC 5
St Helier
Jersey, JE1 1ST
Step 1: WisdomTree is offering a service whereby SGBS and/or WGLD securities can be redeemed directly for physical bullion. Your client is requesting the direct redemption of SGBS or WGLD securities in exchange for physical gold by delivery of the bullion to a bank either registered in Germany (in the case of SGBS) or in the United Kingdom, Germany or Switzerland (in the case of WGLD). Please take time to read the FAQs, Terms and Conditions for the Exchange for Physical Gold and the exchange form.
Step 2: You and your client will need to confirm who the Registered Holder is. Given that most individual investors hold their SGBS or WGLD securities through a brokerage account, very few individual investors will be the registered holder. Most beneficial owners of exchange traded securities hold those securities in brokerage accounts, and their brokers hold the securities through additional accounts (often called “nominee accounts”). As an issuer, WisdomTree Metal Securities Limited can only see the names of these nominee accounts on its register. The registered holder of the SGBS or WGLD securities may apply for redemption on its own behalf, or as nominee on behalf of the beneficial holder. Additionally, SGBS or WGLD securities held in settlement systems outside of CREST will need to track the ownership chain through to the ultimate CREST holding. As a result, your client will likely need your help in completing the redemption process.
Step 3: VERY IMPORTANT: Both you and your client will need to provide the relevant customer due diligence/anti-money laundering ("CDD/AML" documentation). We cannot begin the process until we have received the required CDD/AML information and performed the necessary review. For the detailed requirements, please refer to the CDD/AML documentation.
Once we complete the CDD/AML process, we will confirm receipt of the exchange form and commence the exchange.
Step 4: You may need to help your client complete the exchange form and Brokers will generally need to provide the following details:
- Your CREST account details. (Part A) Please note that redemption of the SGBS or WGLD securities will be free of payment, with the securities delivered to the Issuer and matched in CREST but no cash flowing the other way. The Issuer will provide a confirmation of the transfer of gold to the relevant unallocated account of Metalor who will then deliver to the relevant bank registered in Germany (in the case of SGBS) or in the United Kingdom, Germany or Switzerland (in the case of WGLD).
- Please enter the name of the registered holder (your nominee or depositary account name) (Part B);
- Please enter the name of the beneficial owner (Part C);
- The number of securities of either SGBS or WGLD your client wishes to redeem (Part D);
- You will need to make clear which bank you wish to have your bullion delivered and provide relevant account details and a contact name at that bank (Part E);
- Provide contact details for confirmation of redemption and exchange and sign the exchange form (Parts H and I). It is important the exchange form is signed by the Registered Security Holder.
You or your client can send the exchange form by email or post:
Email: wisdomtreeadminjsy@apexgroup.com
Phone: +44 1534 722 787
Post:
The Administrator,
WisdomTree Physical Swiss Gold Securities Redemption,
IFC 5
St Helier
Jersey, JE1 1ST
Frequently asked questions
General
Q1. Can I redeem my Gold Securities (SGBS/WGLD) for physical gold?
Yes, each SGBS or WGLD security entitles the registered holder, within CREST, to payment of gold subject to the Conditions. The relevant amount of gold is referred to as the Metal Entitlement and is published by the Issuer on its website.
Q2. What kind of gold can I receive?
An investor can elect to receive gold in amounts as low as [1 gram] up to the LBMA good delivery bars of ca. 12kg.
Q3. Is there a minimum number of SGBS that I have to redeem?
Since the minimum redemption cost is 1 ounce of gold per redemption, investors need to redeem sufficient securities to generate more than 1 ounce of gold.
Q4. What happens if I redeem and there is gold left over after the exchange for Bullion?
Any excess over the nearest whole integer in grams of gold (after deducting for the relevant redemption fee) to be delivered will be a fee payable to the Issuer to cover the cost of the redemption.
Q5. How do I receive my Bullion?
Bullion in respect of SGBS securities will only be delivered to a bank or financial institution registered in Germany with whom you have a relationship. Bullion in respect of WGLD securities will only be delivered to a bank or financial institution registered in Germany, the United Kingdom or Switzerland with whom you have a relationship.
Costs
Q6. How much does redemption and exchange into Bullion cost?
For the exchange into Bullion, a fee is charged to cover the cost of exchanging the securities into physical bullion. This fee will be deducted from the amount of gold available for delivery to you, and as a result, will reduce the amount of gold the Security Holder will receive in the form of Bullion. Currently, the fee is 1% of the total amount of gold represented by the SGBS or WGLD securities to be redeemed. Any remaining amounts that are less than one gram will not be delivered or paid out to the investor. Redemptions are subject to a minimum physical delivery fee of 31.1034768 grams (or 1 fine troy ounce of gold), which should be considered when considering the total SGBS or WGLD securities to be redeemed in this way.
Q7. Why is there a fee to exchange for Bullion?
The market for physical gold is different from the wholesale market for LBMA Good Delivery Bars held by the issuer. Whereas LBMA Good Delivery Bars generally trade at or fairly close to the spot price of gold, physical gold is sold at a premium (and are often repurchased at a discount). The majority of the premium is set by the manufacturer, reflecting its operating cost and profit margin.
Q8. Is there any VAT payable on the redemption and exchange?
For investors who are tax resident in the UK and member states of the European Union, no VAT should be payable on redemption for physical gold but please confirm with your tax advisor as the redeeming security holder would be responsible for paying any VAT due.
Q9. What risks does the exchange for Bullion involve?
Investors should be aware that physical gold is not as liquid as unallocated gold. As a result, an investor taking delivery of physical gold may not be able to easily sell it, or, if an investor can sell it, the price may be less than the then prevailing spot price for gold.
In addition, investors should note that the Bullion attributable to the SGBS and WGLD securities is transferred out of the Custodian's allocated Secured Metal Accounts into the unallocated account of Metalor where it is held on trust for the redeeming Registered Holder. This means that the physical gold is no longer under the protection of the Security Deed and title and risk in the Bullion will pass to the Registered Holder.
Neither the Trustee nor WisdomTree Metal Securities Limited shall be responsible or liable for any failure by Metalor to effect a delivery of the relevant Bullion in accordance with the instructors of the Issuer.
For further information on risks more generally please see the section of the Prospectus of WisdomTree Metal Securities Limited entitled "Risk Factors" and the terms and conditions document in relation to physical delivery.
How to redeem
Q10. What does it mean that only the “registered holder” has a right to elect for exchange for physical gold?
For most securities that are traded on exchange, there is a difference between the holder of record who is registered on the records of an issuer and the beneficial owner who ultimately owns security. Most beneficial owners of exchange traded securities hold those securities in brokerage accounts, and their brokers hold the securities through additional accounts (often called “nominee accounts”). As an issuer, MSL can only see the names of these nominee accounts on its register. The registered holder of the SGBS or WGLD securities may apply for exchange for Bullion on its own behalf, or as nominee on behalf of the beneficial holder.
Q11. How do I know if I am the registered holder?
Given that most individual investors hold their SGBS or WGLD securities through a brokerage account, very few individual investors will be the registered holder.
Q12. So if I am not the registered holder, how do I apply for exchange for physical gold?
While some holders may hold SGBS or WGLD securities directly, it is likely that most investors will hold it through a broker or other financial intermediary and even in different settlement systems. In those cases, the Security Holder listed on the Register is likely to be the broker’s or financial intermediary’s nominee account. Investors should contact their broker or financial intermediary to ask them to assist in the redemption and exchange process (described in detail below). WisdomTree is happy to speak to the broker to explain the process. For assistance, please direct them to: wisdomtreeadminjsy@apexgroup.com.
Q13. What happens if my broker cannot help with the redemption process?
If your broker is unable to help with the exchange process, please contact us at wisdomtreeadminjsy@apexgroup.com
Q14. Do I need to fill out a form?
The registered Security Holder must provide a redemption form specifying the following:
- The name of the Security Holder listed on the Register and appropriate contact details
- The name of the beneficial owner of the SGBS/WGLD securities
- Whether SGBS or WGLD securities are being redeemed and the number of securities to be redeemed and exchanged for physical gold
- The name of the bank or financial institution registered in Germany and a contact name at said bank.
The completed form should be sent to the following email address: wisdomtreeadminjsy@apexgroup.com.
Alternatively, it can be posted to:
WisdomTree Physical Gold Redemption,
Apex Financial Services (Alternative Funds) Limited
IFC 5
St Helier
Jersey, JE1 1ST
Phone: +44 1534 722 787
Q15. Is there any Client Due Diligence/Anti Money Laundering ("CDD/AML") documentation required?
Yes, the beneficial owner must provide appropriate CDD/AML documentation. We cannot begin the redemption and exchange process until we have received the required CDD/AML information and performed the necessary review.
Once we complete the CDD/AML process, we will confirm receipt of the exchange form and commence the redemption and exchange.
For more detail, investors should refer to the CDD/AML procedures.
Q16. What is the proposed timeline for exchange?
Before the actual redemption and exchange process may begin, we must receive physical CDD/AML documents and perform the necessary CDD/AML checks. Those checks can take a few days. Once we have completed those checks, we will confirm receipt of a valid exchange form; from that point, the redemption of SGBS or WGLD securities against the delivery of physical bullion can take up to two weeks and is dependent on Metal. Redemptions for large amounts of bullion may take longer as set out in the terms and conditions for physical redemption.
About Heraeus Precious Metals
Heraeus, the technology group headquartered in Hanau, Germany, is a leading international family-owned company formed in 1851.
Heraeus Precious Metals (HPM), a global business unit of Heraeus, is the world's largest precious metals service provider. Their precious metal bars are among the most popular investment products when it comes to investments in physical precious metals. With our four trading sites in all relevant time zones, we offer our customers a global production and logistics network. Their multiple vaulting locations around the world provide short lead times and help our customers to increase market opportunities.
With a Code of Conduct that includes binding regulations and guidelines on the acceptance and processing of precious metals, the Heraeus Group has committed to high standards that apply to all employees. Accordingly, Heraeus bars are produced only from material that meets these standards. The standards apply to primary supply from mines as well as recycled material. Trust and reliability, transparency and our financial stability have formed the foundation of our business for more than 160 years.
To discover more about the history, products and solutions of Heraeus Precious Metals, visit their website.
About the gold bars
Every gold bar produced by Heraeus carries a serial number and comes with a quality certificate on which this serial number is also printed.
Heraeus cast gold bars
Purity: 999.9
Each cast bar and its certificate is tightly sealed in plastic. The Heraeus cast gold bars are available in four different sizes:
Heraeus minted gold bars
Purity: 999.9
All minted bars are delivered in a blister card. These look attractive, and the two welded seams make them particularly stable. Furthermore, they are made of renewable PET, an environmentally friendly plastic. Each is about the size of a credit card – 85 mm x 54 mm. Heraeus minted gold bars are available in seven sizes:
Heraeus Kinebar gold bars - very safe
Purity: 999.9
Heraeus gold bars are obtainable with an additional security feature, the Kinegram®, which is also visually appealing. They are available in six sizes: 1g, 2g, 5g, 10g, 20g, and 1oz. Kinebars are likewise packaged in the popular blister packs.
Heraeus bars have been changed over the decades, so older bars may vary from this description.