Euwax Gold II
Also: EWG2, Euwax Gold 2
Euwax Gold II is a physically backed gold ETC of Boerse Stuttgart that securitises a direct claim to delivery of real gold. It is a German-listed product; UK investors are subject to UK Capital Gains Tax rules on any gains.
Euwax Gold II (WKN: EWG2LD, ISIN: DE000EWG2LD7) is an exchange-traded security (ETC – Exchange Traded Commodity) issued by BNP Paribas Emissions- und Handelsgesellschaft mbH and traded exclusively on Boerse Stuttgart (EUWAX). Each security represents exactly 1 gram of fine gold with a fineness of 999.9/1000 and is 100 per cent backed by physical gold bars in accordance with the LBMA Good Delivery standard.
Difference from Xetra-Gold and classic gold ETFs
Unlike a gold ETF or pure paper gold, Euwax Gold II securitises an immediate right to physical delivery: investors can exchange their units for physical gold in bar form – from a minimum quantity of 1 gram. The gold is stored separately in the vault of a German custodian and is protected in the event of the issuer's insolvency (allocated gold).
Compared with the similarly structured Xetra-Gold (Deutsche Börse / DZ Bank), Euwax Gold II differs mainly in the trading venue (Stuttgart instead of Xetra) and the issuer. Both products are structurally comparable.
Tax treatment for UK investors
Euwax Gold II is a German-listed product, but UK investors are taxed under UK law. Gains from selling Euwax Gold II are subject to Capital Gains Tax (CGT) and become taxable above the annual exempt amount; the chargeable gain equals disposal proceeds minus acquisition cost. Because it is not a UK legal-tender coin from The Royal Mint, it does not qualify for the CGT exemption that applies to Sovereigns and Britannias. There is also no German-style one-year speculation period under UK rules. HMRC treats such securities like other investments for CGT purposes.
Note: This does not constitute tax or investment advice. Your individual tax position should be clarified with a qualified adviser.
You can follow the current gold price and historical price development here on the site. For an estimate of possible tax effects, the tax calculator is available.
Costs and trading
Euwax Gold II charges an annual management fee, which is priced in via a slight adjustment of the gold quantity per unit. The spread between bid and ask price is determined by liquidity on the Stuttgart floor and is generally tight. There are no entry loads; only the broker's usual order fees apply.
In brief
Euwax Gold II combines the easy tradability of a security with the physical character of real gold. For UK investors, however, any gain is subject to Capital Gains Tax above the annual exempt amount – it does not enjoy the CGT exemption reserved for UK legal-tender coins from The Royal Mint.