(BUSINESS WIRE)–ETF Securities USA LLC (ETFS) announced today that the total assets under management of its two products; the ETFS Physical Swiss Gold Shares (SGOL) and the ETFS Physical Silver Shares (SIVR) now exceeds $350m as of October 21, 2009 since launch.
Globally, ETF Securities’ assets under management (AUM) have moved to an all-time high of $16bn due to strong investor interest in hard assets(5) . Among the principal catalysts of this interest are increased government debt levels,aggressive quantitative easing policies, concerns about the outlook for the US dollar, British pound, other major currencies and medium-term inflation risks. AUM has increased by $7.9bn this year, with 78% of the increase driven by investor inflows, as ETF Securities expanded its geographical coverage with precious metal product listings on the New York Stock Exchange and the Tokyo Stock Exchange (NYSE Arca and TSE).
Demand for physically-backed precious metal products has been a key factor behind the rise, with ETF Securities’ global physically-backed gold holdings (including products not available to US investors) seeing new all time highs. Inflows into ETFS’ gold products have been particularly strong, with a $97m increase on the week, bringing ETFS’ global gold holdings to a new record of 8.4m ounces ($8.4bn), up 39% since the beginning of the year.
Flows into the physically backed gold products have shown low sensitivity to downward movements in the gold price (ie flows tend to remain firm even during periods when the gold price has dropped sharply) highlighting that the largest buyers of gold Exchange Traded Funds (ETFs) are institutional investors buying the metal as a long-term hedge against inflation, US dollar depreciation and other risks, rather than as short term trading instruments. ETF Securities believes the trend into ETF holdings signifies that most large investors’ think these risks may continue to rise.
Commenting on this milestone for ETF Securities in the US, William Rhind, Head of Sales & Marketing for ETFS Marketing LLC, commented:
“We are very pleased to report continued healthy growth in our US precious metals offering: ETFS Physical Swiss Gold Shares (SGOL) and ETFS Physical Silver Shares (SIVR). The feedback from investors so far has been very positive with particular praise reserved for the Swiss gold vaulting and vault inspection process of SGOL and SIVR. We have received very good feedback so far from investors looking to diversify their Silver and Gold holdings into SIVR and SGOL as they are audited biannually and provide a low cost(3) solution to those seeking exposure to the Silver and Gold markets.”
Notes to editors:
ETFS Physical Swiss Gold Shares (SGOL) began trading on the NYSE ARCA on September 9th, 2009. The objective of the newly listed shares is to reflect the performance of the price of Gold bullion, less the Trust’s operating expenses. The Trust is open ended and is designed for investors who want a cost-effective(1) and convenient(2) way to invest in Gold as well as diversify their Gold holdings. The highlights of the new offering are:
ETFS Physical Silver Shares (SIVR) began trading on the NYSE ARCA on July 24, 2009. The objective of the newly listed shares is to reflect the performance of the price of silver bullion, less the Trust’s operating expenses. The Trust is open ended and is designed for investors who want a cost-effective(1) and convenient(2) way to invest in silver as well as diversify their silver holdings.
The highlights of the new offering are:
ETFS Physical Silver Shares are issued by the ETFS Silver Trust. And ETFS Physical Swiss Gold Shares are issued by the ETFS Gold Trust.
For more information on the new issue or ETF Securities please contact the US marketing agent, ETFS Marketing on 212-918-4954 or visit our website: www.etfsecurities.com
The ETFS Gold Trust and ETFS Silver Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Trusts are not subject to the same regulatory requirements as mutual funds. These investments are not suitable for all investors. Please read the prospectus carefully before investing.
(1) The Sponsor expects that, for many investors, costs associated with buying and selling the Shares in the secondary market and the payment of the Trusts ongoing expenses will be lower than the costs associated with buying, selling, storing and insuring Gold and Silver bullion in a traditional allocated Gold and Silver bullion account.
(2) The Shares will trade on the NYSE Arca and will provide institutional and retail investors with indirect access to the Gold and Silver bullion market.
(3) Ordinary brokerage fees do apply.
(4) The LBMA Good Delivery list represents the de facto standard for the quality of gold and silver bars. Stringent criteria for assaying standards and specifications for weight, dimensions, fineness/purity that identify and validate marks and appearance of gold bars must be met to qualify as being London Good Delivery bar.
(5)Hard Assets refers to tangibles such as commodities.
William Rhind is a registered representative of ALPS Distributors Inc.
For more information on the new issue or ETF Securities, please contact the US marketing agent, ETFS Marketing at 212-918-4954 or visit our website: www.etfsecurities.com
Risks and Important Considerations
The value of the Shares relates directly to the value of the gold and silver held by the Trusts and fluctuations in the price of gold and silver could materially adversely affect an investment in the Shares. Several factors may affect the price of gold and silver, including: A change in economic conditions, such as a recession, can adversely affect the price of gold and silver. Gold and silver are used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the Shares; Investors’ expectations with respect to the rate of inflation; Currency exchange rates; Interest rates; Investment and trading activities of hedge funds and commodity funds; and global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of bullion producing companies, it could cause a decline in world prices, adversely affecting the price of the Shares. Also, should the speculative community take a negative view towards bullion, it could cause a decline in world gold and silver prices, negatively impacting the price of the Shares. There is a risk that part or all of the Trust’s Gold and Silver could be lost, damaged or stolen. Failure by the Custodian or Sub-Custodian to exercise due care in the safekeeping of the precious metal held by the Trusts could result in a loss to the Trusts.
The Trusts are new and have limited operating history. Commodities generally are volatile and are not be suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. Please refer to the prospectus for complete information regarding all risks associated with the Trusts.
Shares in the Trusts are not FDIC insured, may lose value and have no bank guarantee.
This material must be accompanied or preceded by a prospectus. Please read the prospectus carefully before investing. Click here to review the prospectus.
ALPS Distributors, Inc. is the marketing agent for ETFS Gold Trust and ETFS Silver Trust. ETF Securities Ltd. or its affiliates is not affiliated with ALPS Distributors, Inc. Certain marketing services may be provided for ETFS Gold Trust and ETFS Silver Trust by ETFS Marketing LLC.
Although Shares of the Trust may be bought and sold on the exchange through any brokerage account, they are not individually redeemable directly from the Trust. Investors may acquire Shares and tender them for redemption through the Trust in Basket aggregation only. Please see the prospectus for more details.
This press release contains “forward-looking statements” with respect to results of operations, plans, objectives, future performance and business. Statements preceded by, followed by or that include words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, or similar expressions are intended to identify some of the forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are included, along with the statement, for purposes of complying with the safe harbor provisions of that Act. All statements (other than statements of historical fact) included in this press release that address activities, events or developments that will or may occurring the future, including such matters as changes in commodity prices and market conditions (for Gold and the Shares), the Trusts operations, the Sponsors plans and references to the Trusts future success and other similar matters are forward looking statements. These statements are only predictions. Actual events or results may differ materially.