The Trust can exchange the baskets in exchange for the amount of gold corresponding to their exchange value. The Trust does not exchange individual shares, but rather they are listed and listed on NYSE Arca under the stock symbol “IAU”. Gold ETFs are publicly traded and can be bought and sold directly with a Demat account. Gold ETFs back their assets by purchasing real physical gold with a purity of 99.5%.
This physical gold is stored in vaults in the custodian bank and is valued periodically, in accordance with the guidelines of the Securities and Exchange Board of India (Sebi). While iShares Gold Trust shares can be bought or sold on the secondary market through any brokerage account, Trust shares cannot be redeemed from the Trust, except in large aggregated units called Baskets. In fact, mutual funds also allow investors with minimum prescribed amounts to redeem their investment in the form of physical gold.