Structure & Security
How your investment
is structured & secured
Nordheim Capital AB (publ) is a Swedish public limited company and issuer of ETCs, with its registered office in Stockholm. The company's base prospectus has been approved by Finansinspektionen, the Swedish Financial Supervisory Authority, as the competent authority under the EU Prospectus Regulation.
Physical 1:1 backing
What does it mean?
Each unit of Nordheim Capital's ETCs corresponds to an exact quantity of physical precious metal on a daily basis.
Unlike synthetic products (which use derivative contracts) or products with only partial coverage, Nordheim Capital's ETCs use neither.
The ETCs are secured by underlying precious metal held with the custodian, J.P. Morgan Chase Bank N.A., London, where the collateral is intended to be realised for the benefit of investors in accordance with the terms of each product.
Creation & redemption
The creation/redemption mechanism
Nordheim Capital's ETCs use a creation/redemption mechanism to keep the market price as close as possible to the net asset value (NAV).
Creation
Authorised Participants (in Nordheim Capital's case, Virtu Financial Ireland Limited) create new ETCs by delivering the consideration, in accordance with the Terms and Conditions of Nordheim Capital's ETCs, to the account provided with the custodian (J.P. Morgan Chase Bank N.A., London).
Redemption
On redemption, Virtu Financial Ireland Limited transfers the ETCs for cancellation and receives the consideration back to the extent and on the terms set out in the Final Terms.
This mechanism means that arbitrage incentives keep the ETC's market price close to the actual value of the underlying precious metal.
Transparency & reporting
Daily insight into your holding
Nordheim Capital publishes the net asset value (NAV) of all its ETCs daily, based on the official LBMA price combined with the current USD/SEK exchange rate. NAV is the valuation point on which the creation/redemption mechanism is based.
In addition to daily NAV reporting, Nordheim Capital publishes regular reports on its holdings of precious metals - including certificates from the custodian (J.P. Morgan Chase Bank N.A., London).
Nordheim Capital is also subject to applicable rules on disclosure, market abuse and investor information, including the relevant PRIIPs KID requirements.
The prospectus, final terms and Key Information Documents (KID) are always available to you as an investor. You will find the documents under Investor Relations.
How NAV is calculated and used
NAV is calculated daily, starting from the market value of the physical precious metal held securely with the independent custodian (J.P. Morgan Chase Bank N.A., London). The management fee is then deducted.
The remaining net value is divided by the number of ETCs outstanding to arrive at the NAV per ETC, which is published on our website after each trading day.
- Secure custody
- Market value
- Management fee
- Daily NAV
LBMA
What does it mean?
LBMA stands for the London Bullion Market Association, an international trade association that describes itself as the independent authority for precious metals. LBMA's mission is to strengthen integrity and transparency in the global precious metals market by setting institutional standards and developing market solutions.
In practice, LBMA provides a common framework for how physical precious metals can be traded and handled professionally. LBMA works to protect the interests of buyers and sellers in the market by promoting quality in the loco London market and by supporting the assurance of participants linked to refiners' processes.
LBMA represents the global market for gold and silver bullion, which is centred in London but has a global membership base. The organisation also acts as a point of contact for regulators, investors and market participants, and develops guidance and practices that support an orderly precious metals market.
Good Delivery
The quality requirements for gold & silver
When a physical bar holds "Good Delivery" status, it means that it meets LBMA's requirements to be accepted in the professional precious metals market.
This involves standardised specifications and uniform rules (see the key requirements on the right) that allow precious metals to be traded, delivered and handled to a high institutional standard.
Good Delivery is a central part of the infrastructure behind physical precious metals and helps investors rely on clear quality frameworks and market practice.
| Requirement | GoldLBMA Good Delivery | SilverLBMA Good Delivery |
|---|---|---|
| Refiner | LBMA-accredited refiner | LBMA-accredited refiner |
| Purity | Minimum 995.0‰ (99.5%) | Minimum 999.0‰ (99.9%) |
| Weight | 350-430 fine troy ounces (approx. 10.9-13.4 kg) | 1,000 troy ounces ±10% (approx. 31.1 kg ±10%) |
| Shape & dimensions | Standardised bar according to LBMA specifications | Standardised bar according to LBMA specifications |
| Marking | Refiner's stamp, assay mark, fineness, serial number and year of manufacture | Refiner's stamp, assay mark, fineness, serial number and year of manufacture |
| Deliverability | Accepted for LBMA trading & vaults | Accepted for LBMA trading & vaults |
LBMA prices
International reference prices (benchmarks)
LBMA is behind the daily price auctions in London that form the basis of global reference prices for gold and silver.
The benchmark process itself is independently administered: LBMA owns the benchmarks, while external benchmark administrators are responsible for running them in practice - including methodology, auction platform, surveillance and governance.
For gold and silver, ICE Benchmark Administration (IBA) administers the benchmarks on behalf of LBMA. Nordheim Capital's ETCs also use these benchmarks as their basis.
These reference prices are widely used in the market for valuation and pricing, and also appear in transactions and financial products, making it easier to compare precious metal prices and follow developments over time.
Where can you find the prices - and when?
LBMA publishes the prices on its website with a delay (until midnight London time the same day), while real-time prices are available through market data providers.
This means that the prices on LBMA's website are primarily official reference prices rather than a real-time source for trading.
Our products
Two products - Always physically backed
Nordheim Guld ETC
Direct exposure to gold meeting the LBMA Good Delivery standard through a secured structure, held in custody with J.P. Morgan Chase Bank N.A., London.
Designed to provide direct exposure to gold.
- Backed by physical gold
- LBMA Good Delivery standard
- ISK & Capital Insurance
- Nasdaq Stockholm
Nordheim Silver ETC
Direct exposure to silver meeting the LBMA Good Delivery standard through a secured structure, held in custody with J.P. Morgan Chase Bank N.A., London.
Designed to provide direct exposure to silver.
- Backed by physical silver
- LBMA Good Delivery standard
- ISK & Capital Insurance
- Nasdaq Stockholm
Investments in ETCs involve risk. The products do not provide capital protection, and their value may rise or fall, meaning you could lose part or all of your invested capital. Returns are affected by, among other factors, the performance of the underlying precious metal and, where applicable, currency fluctuations and fees. ETCs are exchange-traded securities, and their characteristics, terms and risks are described in the Prospectus and the Key Information Document (KID). Please read these documents carefully before investing and make sure you understand the product's structure, costs and relevant risk factors. Past performance is not a reliable indicator of future results. If necessary, seek independent financial, legal or tax advice before making an investment decision.
How to invest
Our products can be traded through ISK, Capital Insurance and traditional brokerage accounts with several online brokers. More platforms are added on an ongoing basis.
Can't find your broker above? Contact us