As you may recall, one of my first blog posts in 2012 was about me going to Hong Kong and trying to buy silver at Hang Seng Bank. They told me I couldn't buy silver, only gold.
Now, finally, an ETF started to trade silver in Hong Kong. As you can see in the article below, silver is becoming more and more important in the mainstream media. Investors are getting aware that precious metals have a key role in our society.
I bet you that there are a lot of Hong Kong people waiting to buy a load of silver in Hong Kong. And what's important is that these ETF's in Asia are actually backed by the real physical metal!
"ETF Securities on November 28 began offering three new precious metals exchange-traded funds (ETFs) on the Hong Kong stock exchange. The ETFs are: Physical Silver ETF, Physical Gold ETF, and Physical Platinum ETF. They track London benchmarks.
According to Fred Jheon, Managing Director and Head of Asia Pacific at ETF Securities, the firm is the first ETF provider to offer a suite of precious metal products to the Hong Kong exchange that are backed by the physical metals. The HK exchange currently has three other instruments that track gold, including GLD, the world's largest gold tracker.
"We are pleased to welcome ETF Securities and their three commodity ETFs to the Hong Kong ETF market," said Calvin Tai, Head of Trading at HKEx in a public statement. "The introduction of the first ETFs on silver and platinum will further enrich our product offerings in precious metals. These three new ETFs are also in line with our corporate strategy to diversify by adding asset classes to our equities and equities-related products."
The stock codes for these new ETFs are: ETFS Physical Silver ETF (3117), ETFS Physical Gold ETF (2830), and ETFS Physical Platinum ETF (3119). HSBC will hold the bullion in their vaults and meet 'good delivery standards' set by either the London Bullion Market Association (LBMA) or the London Platinum and Palladium Market (LPPM), according to ETF Securities officials.
The annual expense ratios for these new ETFs are 0.39 percent for the gold ETF, 0.5 percent for silver and 0.6 percent for platinum."
Disclosure: I am long AGQ.