stock held on behalf of the ETFS Swiss Gold Trust (SGOL) at the vaults of UBS Zurich, a sub-custodian of the Trust’s Custodian J.P. Morgan.
- Each share of SGOL directly represents 1/10th of an ounce of physical spot gold less management fees
- Gold bars held in the bullion vaults on behalf of the ETFS Gold Trust are individually identified with bar numbers
- Each Gold bar number is updated and published on http://www.etfsecurities.com/ which can be accessed by the general public
- Inspectorate International independently inspects and audits these gold bars held in the gold bullion vaults
“As part of our ongoing commitment to transparency to the market and, most importantly, to our investors, ETF Securities engages Inspectorate International Limited to audit each ETF Securities gold bullion bar held in the vault bi-annually, once at the end of the calendar year and once at random,” said Fred Jheon, Managing Director and Head of Product Development. “After the audit process, we then post the bar numbers of all the metal holdings on the company website, providing investors with insurance that they are, in fact, purchasing the underlying physical metal when they invest in SGOL.”
To view ETF Securities’ U.S. products metal bar lists, please visit: http://etfsecurities.com/us/securities/etfs_physical_exposure.asp#bars
Following are the results from the Inspectorate International Limited report:
- Audit Results: At close of business on December 31, 2009, the account held title to 757 London Good Delivery, Large Gold Bars said to be purity of 99.50% minimum, up to and including 99.99%. As per the weight list records of the Custodian, the bars total 304,549.565 fine troy ounces of gold.
- Description of Activity: Inspectorate International performed the gold count on the 2nd of February 2010 at the sub-custodian’s premises and performed certain procedures including but not limited to the following:
- Each individual gold bar held by the sub-custodian, was agreed to the records of the sub-custodian as being held in the name of the above mentioned account. All bar numbers, brand and purities of each bar was checked against the records of the sub-custodian. The weight of a representative sample of bars was taken and then checked against the sub-custodian’s records.
- A reconciliation was performed between the records of the sub-custodian at 31st December 2009 and the mentioned account on 2nd February 2010 (the last day of the count). All movements were correctly recorded and the bars held at 31st December were confirmed by the reconciliation.
- Anomalies: There were no anomalies identified in respect of the gold held as at 31st December 2009.
About ETF Securities:
ETF Securities Ltd is a leading promoter and issuer of ETF Securities exchange traded products (ETPs), specializing in commodities, with global assets under management of over USD $17.2 billion as of March 10, 2010.
ETF Securities Ltd is independently owned and has the largest European exchange traded commodity product platform. The chairman of ETF Securities Ltd, Graham Tuckwell, developed the world’s first Gold ETF in Australia and London in 2003. ETF Securities Ltd also launched the world’s first Oil exchange traded commodity in 2005 followed by an entire platform of exchange traded commodities which were listed on the London Stock Exchange in 2006. He is also a registered representative of ALPS Distributors Inc.
ETF Securities is the first European exchange traded commodity provider to enter the US ETP market. ETF Securities goal is to establish itself as the leading commodity ETP provider in the United States.
The ETFS Gold Trust, ETFS Silver Trust, ETFS Palladium Trust and ETFS Platinum Trust are not investment companies registered under the Investment Company Act of 1940 or commodity pools 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.
Fred Jheon is a registered representative of ALPS Distributors Inc.
Risks and Important Considerations
The value of the Shares relates directly to the value of the gold, silver, palladium and platinum held by the Trusts and fluctuations in the price of gold, silver, palladium and platinum could materially adversely affect an investment in the Shares. Several factors may affect the price of gold, silver, palladium and platinum, including: A change in economic conditions, such as a recession, can adversely affect the price of gold, silver, palladium and platinum. Gold, silver, palladium and platinum 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, silver, palladium and platinum prices, negatively impacting the price of the Shares. There is a risk that part or all of the Trust’s gold, silver, palladium and platinum 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 suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. Since there is no limit on the amount of platinum and palladium that the Trust may acquire, the Trust, as it grows, may have an impact on the supply and demand of platinum and palladium. 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, ETFS Silver Trust, ETFS Platinum Trust and ETFS Palladium Trust. ETF Securities Ltd. or its affiliates is not affiliated with ALPS Distributors, Inc. Certain marketing services may be provided for ETFS Gold Trust, ETFS Silver Trust, ETFS Platinum Trust and ETFS Palladium 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, Silver, Platinum and Palladium 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.
Contacts for Press:
+44 20 7448 4336
All Other US Inquiries:
ETFS Marketing LLC
48 Wall Street, 11th Floor
New York City, NY 10005