NewGold Issuer Ltd. has delisted 500,000 NewGold
platinum debentures following the redemption of 4,907.528 fine troy
ounces of platinum bullion. The delisting leaves 79.4 million NewGold
platinum debentures in issue, comprising approximately 779,315.495
fine troy ounces of platinum.
According to Investopedia.com, “a debenture is a type of debt
instrument that is not secured by physical assets or
collateral. Debentures are backed only by the general creditworthiness
and reputation of the issuer. Debentures and bonds can both be used to
raise capital, but debentures are typically issued to raise short-term capital.”
According to the U.K. arm of independant investment researcher Morningstar, "NewPlat ETF (issued by NewGold
Issuer Limited) offers the opportunity to invest in platinum bullion,
as it tracks the Rand price of platinum. The debentures are fully
backed by physical platinum bullion with each debenture approximately
equivalent to 1/100th of a fine troy ounce of platinum bullion, which
is held with a secure depository on behalf of investors."
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NewGold Issuer is an exchange traded fund launched by the investment
bank Absa Capital, and invests in commodity markets.
The NewGold Exchange Traded Fund was formed on Oct. 27, 2004, and is
based in South Africa.