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ETF Securities: Gold breaks $1,000 per ounce as gold ETC holdings hit all-time high
London, September 09, 2009
Gold broke the $1,000 per ounce level in London on Tuesday 8th September, as investor demand for gold has continued to surge.
Gold holdings of ETF Securities' gold ETCs hit an all time high of 8 million ounces ($8bn) at close of trade Tuesday, as the gold price edged through the psychologically important $1,000 per ounce mark.
Buying of gold ETCs has been gaining momentum over the past month with the holdings of ETFS Physical Gold (PHAU), Gold Bullion Securities: (GBS) and GOLD, rising by 657,724 ounces ($658mn), the largest monthly increase since January 2009. Inflows in just the past month are equivalent to 33% of total net inflows this year, highlighting the magnitude of the recent surge.
The rise in gold ETC inflows has come at a time when investors' appear to be becoming increasingly wary of the magnitude and duration of the rally in risk assets this year. Gold is often viewed as a safe haven asset, with gold ETCs often seeing strong inflows when investors become concerned about possible financial and economic turbulence, as we saw last year following the Lehman bankruptcy and early this year with the commencement of "quantitative easing" policies from major central banks.
Due to the success and increasing demand for physical gold exchange traded products, ETF Securities recently launched Japan's first ever commodity ETF precious metals platform on the Tokyo Stock Exchange on the 24th August 2009, allowing investors to gain exposure to physical precious metals including ETFS Physical Gold. The other products cover, silver, platinum, palladium and a precious metals basket.
Nicholas Brooks, Head of Research & Investment Strategy at ETF Securities commented:
"The surge of the gold price through the psychologically important $1000 per ounce level has coincided with our gold ETC holdings reaching an all time high of 8mn ounces. Demand for our gold ETCs has been rising rapidly since the beginning of August, with holdings up the equivalent of 658mn ounces ($658mn), the largest monthly increase since January 2009. As gold is often viewed as a safe haven asset, the sharp rise in gold demand over the past month appears to be related to investors' attempting to hedge against possible financial market turbulence following the extremely strong rally in risk assets over the past few months."
For further information, please contact:
Laura Stevens
Tel: +44 (0) 20 7448 4351
Email: laura.stevens@etfsecurities.com
Notes to Editors:
ETF Securities is a provider of Exchange Traded Commodities (ETCs) and 3rd generation Exchange Traded Funds (ETFs). The management of ETF Securities pioneered the development of ETCs, with the world's first listing of an ETC, Gold Bullion Securities in Australia and London in 2003 and then the world's first entire ETC platform which was listed on the London Stock Exchange in September 2006.
ETF Securities now offers more than 150 Exchange Traded Products (ETPs) with $13.7 billion in assets as of 07/09/09.
The ETPs provide investors with a wide variety of investment strategies, with ETPs offering resource equities, physical, long, forward, leveraged and short exposure to all commodity sectors. ETPs are simple to access as they are traded in five currencies (EUR, USD, GBP, AUD and JPY) and listed on nine major exchanges globally including the London Stock Exchange, the New York Stock Exchange, the Tokyo Stock Exchange, NYSE-Euronext Paris, NYSE-Euronext Amsterdam, Deutsche Börse, Borsa Italiana, the Australian Securities Exchange and the Irish Stock Exchange.
To learn more about ETF Securities go to: www.etfsecurities.com
This press release 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 securities (together the "Securities")of ETFS Commodity Securities Limited, ETFS Metal Securities Limited or ETFS Oil Securities Limited or any shares (the "Shares") of ETFS Fund Company public limited company (the "Fund") or any other shares or 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 relevant prospectus (plus any supplements thereto) in the case of the Securities or the prospectus together with the relevant sub-fund supplement in the case of the Shares (in each case the "Prospectus") and recipients of this advertisement who are considering a purchase of Securities or Shares following distribution of the Prospectus are reminded that any such purchase should be made solely on the basis of the information contained in such Prospectus. This advertisement does not constitute any recommendation regarding the Securities or the Shares.
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 Shares or Securities 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 Shares or Securities) must not be acted upon or relied upon by persons who are not relevant persons. The Fund is a collective investment scheme for the purposes of the FSMA and is a recognised scheme for the purposes of the FSMA. 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 Shares or Securities in, from or otherwise involving the United Kingdom
This is not an offer of securities for sale in the United States. The Shares and Securities have not been and will not be registered under the US Securities Act or any other applicable law of the United States. The Shares and 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. None of ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS Oil Securities Limited and ETFS Fund Company public limited company (each an "Issuer") has been or intends to become registered as an investment company under the United States Investment Company Act of 1940 (as amended) (the "Investment Company Act") and related rules. Neither the Shares nor the Securities or any beneficial interest therein may be reoffered, resold, pledged or otherwise transferred in the United States or to US persons. If an Issuer determines that any holder of shares is a US Person or any holder of Securities 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 Shares or Securities (as the case may be) held by that Security Holder in accordance with the provisions described in the Prospectus. Neither the Shares nor the Securities may 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 that is substantially similar to the prohibited transaction provisions of section 406 of ERISA or section 4975 of the Code (any such employee benefit plan, plan or entity, a "Prohibited Benefit Plan Investor"). If the Issuer determines that any Security Holder is a Prohibited Benefit Plan Investor, the Issuer may redeem the Securities or Shares held by that person in accordance with the provisions described in the relevant Prospectus.
"None of the index providers of the relevant ETFs referred to herein nor their licensors make any warranty or representation whatsoever either as to the results obtained from use of the relevant indices and/or the figures at which such indices stand at any particular day or otherwise. None of the index providers shall be liable to any person for any errors or significant delays in the relevant indices nor shall be under any obligation to advise any person of any error or significant delay therein."
"Dow Jones," "UBS", DJ-UBSCISM,", "DJ-UBSCI-F3SM," and any related Indices or Sub-Indices are service marks of Dow Jones & Company, Inc. ("Dow Jones") and UBS AG ("UBS"), as the case may be, and have been licensed for use by the Issuer. The Securities although based on components of the Dow Jones UBS Commodity Index 3 month Forward SM (formerly known as the Dow Jones -AIG Commodity Index 3 Month Forwards SM) are not sponsored, endorsed, sold or promoted by Dow Jones, UBS, or any of their respective subsidiaries or affiliates, and none of Dow Jones, UBS, or any of their respective subsidiaries or affiliates, makes any representation regarding the advisability of investing in such product. ETF Securities Limited and each Issuer are regulated by the Jersey Financial Services Commission.
ETF Securities Limited, ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS Oil Securities Limited, Gold Bullion Securities Limited and ETFS Fund Company PLC are each regulated by the Jersey Financial Services Commission.
To obtain a copy of the prospectus please visit the website at www.etfsecurities.com
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