ETF Securities has filed paperwork with the SEC for a ETFS White Metals Basket Trust. The ETFS White Metals Basket Trust (Trust) will issue ETFS Physical WM Basket Shares (Shares) which represent units of fractional undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of physical silver, platinum and palladium in the proportions held by the Trust, less the expenses of the Trust’s operations. The Shares are designed for investors who want a cost-effective and convenient way to invest in a basket of Bullion with minimal credit risk. The Shares will trade on the NYSE Arca, providing investors with an efficient means to implement various investment strategies.
The investment objective of the Trust is for the Shares to reflect the performance of the prices of physical silver, platinum and palladium in the proportions held by the Trust, less the Trust’s expenses. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to a proportional investment in silver, platinum and palladium. An investment in physical Bullion requires expensive and sometimes complicated arrangements in connection with the assay, transportation, warehousing and insurance of the metal. Although the Shares will not be the exact equivalent of an investment in Bullion, they provide investors with an alternative that allows a level of participation in the silver, platinum and palladium markets through the securities market.
Strategy Behind the Shares
The Shares are intended to offer investors an opportunity to participate in the silver, platinum and palladium markets through an investment in securities. The Bullion representing a Share in the initial Baskets was comprised of [•] ounces of silver, [•] ounces of platinum and [•] ounces of palladium. The logistics of storing and insuring Bullion are dealt with by the Custodian and the related expenses are built into the price of the Shares. Therefore, the investor does not have any additional tasks or costs over and above those associated with dealing in any other publicly traded security.
The Shares are intended to provide institutional and retail investors with a simple and cost-efficient means, with minimal credit risk, of gaining investment benefits similar to those of holding physical Bullion metals in the proportions held by the Trust. The Shares offer an investment that is:
• Easily Accessible and Relatively Cost Efficient. Investors can access the silver, platinum and palladium markets through a traditional brokerage account. The Sponsor believes that investors will be able to more effectively implement strategic and tactical asset allocation strategies that use Bullion by using the Shares instead of using the traditional means of purchasing, trading and holding Bullion, and for many investors, transaction costs related to the Shares will be lower than those associated with the purchase, storage and insurance of physical Bullion.
• Exchange Traded and Transparent. The Shares will trade on the NYSE Arca, providing investors with an efficient means to implement various investment strategies. Upon effectiveness of the registration statement of which this prospectus is a part, the Shares will be eligible for margin accounts and will be backed by the assets of the Trust and the Trust will not hold or employ any derivative securities. Furthermore, the value of the Trust’s holdings will be reported on the Trust’s website daily.
• Minimal Credit Risk. The Shares represent an interest in physical Bullion owned by the Trust (other than amounts of silver held in unallocated form which are not sufficient to make up a whole bar, amounts of platinum and palladium held in unallocated form which are not sufficient to make up a whole plate or ingot, or amounts of Bullion which are held temporarily in unallocated form to effect a creation or redemption of Shares). Physical Bullion of the Trust in the Custodian’s possession is not subject to borrowing arrangements with third parties. Other than the Bullion temporarily being held in an unallocated Bullion account with the Custodian, the physical Bullion of the Trust is not subject to counterparty or credit risks. See “Risk Factors—Bullion held in the Trust’s unallocated Bullion account and any Authorized Participant’s unallocated Bullion account will not be segregated from the Custodian’s assets….” This contrasts with most other financial products that gain exposure to Bullion through the use of derivatives that are subject to counterparty and credit risks.
For the full prospectus click: HERE
– ETFS Physical Platinum Shares (PPLT)
– ETFS Physical Palladium Shares (PALL)
– ETFS Physical Silver (SIVR)