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ETF Securities' physical precious metals platform grows
1000% in the past 6 months
11/12/07
- Asset growth has far exceeded most precious
metals analysts forecasts
- ETFS Physical Platinum (PHPT) now exceeds 105,000oz,
growing 595%
- ETFS Physical Silver (PHAG) exceeds 10 million ounces,
growing over 1400%
- ETFS Physical Gold (PHAU) is fastest growing European gold ETC,
accumulating 575,000 ounces
ETF Securities is seeing explosive growth in its five physical precious metal
Exchange Traded Commodities (ETCs), having seen total assets under
management (AUM) grow to $800 million from $65 million only 6 months earlier.
This growth has far exceeded precious metal analyst forecasts, proving how
popular physically backed precious metals ETCs have become.
The success is due to ETF Securities' pioneering efforts in Exchange Traded
Commodities (ETCs), having created the world's first ETC in 2003. More recently
ETF Securities has created a number of ground breaking products including over
40 ETCs tracking DJ-AIG Commodity Indices, 10 ETCs tracking oil prices and five
ETCs tracking physical precious metals.
Due to significant investor demand for simple access to commodities and more
recently precious metals, all five physical precious metal ETCs have been listed on
five European exchanges including the London Stock Exchange, Deutsche Borse,
Euronext Amsterdam, Euronext Paris and Borsa Italiana. This demand has also
been a result of investors wanting to diversify their investment portfolio into other
asset classes which exhibit low correlation to equities and bonds.
Most recently, ETFS Physical Platinum (PHPT) and ETFS Physical Silver (PHAG)
have shown the greatest interest. PHPT is now the largest platinum ETC in the
world with over $150 million in assets, having grown by 650% in the past 6
months and by more than quadrupled in the past 6 weeks. PHAG is the fastest
growing silver ETC in the world having grown by 1400% in the past 6 months and
more than quadrupled in the past 6 weeks. Now exceeding 10 million ounces
PHAG is the largest silver ETC in Europe.
While platinum and silver have seen most of the growth in recent weeks, ETFS
Physical Gold (PHAU) is now the fastest growing Exchange Traded Gold product in
Europe, growing 4.5 times faster than any other Exchange Traded Gold product in
Europe in the past 6 months. Significant demand in this product has come from
investors in the UK, Germany and Austria. PHAU now exceeds $470 million, an
increase of over 575,000oz over this period.
ETF Securities has 2 other physical precious metal ETCs being ETFS Physical
Palladium (PHPD) and ETFS Physical PM Basket (PHPM). PHPM assets have
doubled in the past week to $60 million. With five physical metal ETCs trading in
three currencies on five exchanges and eligible for UK pension accounts including
PEP, ISA, CTF and SIPP, ETF Securities has provided simple and efficient access
for all investor types.
All of the physical precious metal ETCs are backed by allocated metal - uniquely
identifiable bars which carry no bank credit risk - the precious metal bars and
ingots are held in trust in London by the Custodian HSBC Bank USA N.A., who is
the world's leading Custodian for ETCs with approx $20 billion of precious metals
being held for such products. The metal held with the Custodian must conform to
the rules for Good Delivery of the London Bullion Market Association (LBMA) and
London Platinum Palladium Market (LPPM). Securities are only issued once metal
is confirmed as being deposited into the Company's bullion account with the
Custodian.
Commenting on the response of investors for ETF Securities' precious
metal ETCs, Nik Bienkowski, Head of Listing and Research, said:
"There has been significant increase in demand for ETCs linked to the price of
commodities and particularly precious metals. Most recently, this demand has
been for platinum and silver ETCs as investors seek to diversify their portfolios
away from equities and bonds and into other asset classes.
"Many independent studies have shown that precious metals have low to negative
correlation with equities and importantly, in times of stress, this low correlation is
shown to hold. Given the current financial market uncertainty, we have seen
strong inflows into ETF Securities physical metals ETCs which has grown over tenfold
since May 2007 to $800 million.
"Overall there has been a huge surge in global demand for ETCs with over $33
billion invested in the last three years, with approximately two-thirds 70% ($23
billion) invested in precious metals."
For further information, please contact:
Roman Townsend
Penrose Financial
Tel: +44 (0) 20 7786 4875
Notes to editors:
The management of ETF Securities Limited pioneered the development of
Exchange Traded Commodities (ETCs), in 2003. Building on its success ETF
Securities created the world's first entire ETC platform which was listed on the
London Stock Exchange in September 2006. Since then, ETF Securities has listed
its broad range of ETCs on Europe's major exchanges (Frankfurt, Paris,
Amsterdam and Italy) with each exchange creating a separate ETC segment.
ETCs are open-ended securities which can be created or redeemed by Authorised
Participants or market makers. Investors can buy and sell the ETCs through
regulated brokers or approved market makers. ETCs can be traded with all the
same order types available to equities, including market, limit and stop orders.
They can also be shorted through stock borrowing or CFDs. The minimum trade
size is one security and settlement is T+3 (trade date plus three business days)
in CREST. In addition, these are the only physically-backed precious metal ETCs
eligible for UK pension accounts including PEP, ISA, CTF and SIPP.
To learn more about ETF Securities go to: www.etfsecurities.com
This advertisement does not constitute or form part of any offer or invitation to sell or issue, or any
solicitation of any offer to purchase or subscribe for, any transferable securities to be issued by ETFS
Commodity Securities Limited or any other securities, nor shall it or any part of it nor the fact of its
distribution form part of or be relied on in connection with any contract or investment decision relating
thereto. Any offer, invitation or solicitation shall be made solely by means of the prospectus and
recipients of this advertisement who are considering a purchase of securities following distribution of
the prospectus in connection therewith are reminded that any such purchase should be made solely
on the basis of the information contained in such prospectus and any supplementary prospectus(es).
This advertisement does not constitute any recommendation regarding the securities of ETFS
Commodity Securities Limited.
The communication of this press release is not being made by, and this press release has not been
approved by, an authorised person for the purposes of section 21 of the Financial Services and
Markets Act 2000 (the "FSMA"). Accordingly this press release is not being distributed to, and must
not be passed on to, the general public in the United Kingdom. The communication of this press
release or any other document issued in connection with the offer and sale of the ETCs is only being
made to and directed at those persons in the United Kingdom falling within the definition of
Investment Professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (the "Order"), or high net worth entities, and other persons to
whom it may otherwise lawfully be communicated, falling within Article 49(1) of the Order or any
person to whom it may otherwise lawfully be made (all such persons together being referred to as
"relevant persons"). The communication of this press release (or any other document issued in
connection with the offer and sale of the ETCs) must not be acted upon or relied upon by persons who
are not relevant persons. Persons distributing this press release must satisfy themselves that it is
lawful to do so. All applicable provisions of the FSMA must be complied with in respect of anything
done in relation to the ETCs in, from or otherwise involving the United Kingdom.
This is not an offer of securities for sale in the United States. Commodity Securities have not been
and will not be registered under the US Securities Act or any other applicable law of the United States.
Commodity Securities are being offered and sold only outside the United States to non-US persons in
reliance on the exemption from registration provided by Regulation S of the US Securities Act. The
Issuer has not been and does not intend to become registered as an investment company under the
Investment Company Act and related rules. Commodity Securities and any beneficial interest therein
may not be reoffered, resold, pledged or otherwise transferred in the United States or to US persons.
If the Issuer determines that any Security Holder is a Prohibited US Person (being a US Person who is
not a "qualified purchaser" as defined in the Investment Company Act), the Issuer may redeem the
Commodity Securities held by that Security Holder in accordance with the provisions described in the
Prospectus. Commodity Securities may not be purchased with plan assets of any "employee benefit
plan" within the meaning of section 3(3) of the United States Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), any "plan" described in section 4975(e)(1) of the United States
Internal Revenue Code of 1986, as amended (the "Code") or any entity whose underlying assets
include "plan assets" of any of the foregoing by reason of an employee benefit plan's or other plan's
investment in such entity, which employee benefit plan, plan or entity is subject to Title I of ERISA or
section 4975 of the Code or any United States Federal, state, or local law or non-United States law.
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