NewGold (an exchange traded fund sponsored by Absa Capital) offers the opportunity to invest in gold bullion, as it tracks the Rand price of gold. NewGold issues listed instruments (structured as debentures) backed by physical gold and the value of a NewGold debenture will rise or fall in accordance with the fluctuations in the Rand price of gold bullion. Each debenture is backed by physical gold approximately equivalent to 1/100 ounces of gold bullion, which is held with a secure depository on behalf of investors. NewGold charges an annual fee of 0,4% of the value of the gold bullion held in custody in order to meet its operating expenses.
NewGold debentures are listed on the Johannesburg Stock Exchange (JSE) and may be secondary listed on the Botswana (BSE) and Nigerian Stock Exchange (NSE).