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The ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust and ETFS Palladium Trust are not investment companies 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. This Material must be accompanied or proceed by the prospectus. These investments are not suitable for all investors.
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ETF Securities USA LLC continues to expand in US market with the launch of ETFS Physical Swiss Gold Shares on NYSE ARCA (SGOL)
09/09/09
Highlights of the New Offering
- Gold stored in Switzerland: ETFS Physical Swiss Gold Shares (SGOL) will custody all of its physical gold bullion in secure LBMA approved vaults in Zurich, Switzerland offering diversification benefits across issuer, custodian and geographies.
- Physically-backed: ETFS Physical Swiss Gold Shares (SGOL) are backed by allocated physical gold bullion that meets London Bullion Market Association (LBMA) “good delivery” standards.
- Low cost: ETFS Physical Swiss Gold Shares (SGOL) expense ratio of 0.39% is one of the lowest priced physically-backed gold products offered in the US ETF market.(3)
- Transparent: Gold bars underlying ETFS Physical Swiss Gold Shares (SGOL) will undergo a bi-annual inspection performed by an independent external auditor. All Gold bar identification numbers will be published on www.etfsecurities.com
New York, September 09, 2009 - ETF Securities Ltd (ETFS), one of the world's leading providers of Exchange Traded Funds (ETFs), is independently owned and currently has approximately USD $13 billion (as of September 03, 2009) in assets under management in over 130 products globally. In 2003, Graham Tuckwell, Chairman of ETFS, developed the world's first Gold ETF in Australia and London. ETFS launched the world's first Crude Oil ETF in 2005 and then developed a comprehensive product range of Commodity ETFs which were listed on the London Stock Exchange in 2006. These products are not available to US Investors.
The ETFS Physical Swiss Gold Shares (SGOL)
The objective of ETFS Physical Swiss Gold 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 to gain exposure into physical gold in a cost-effective(1) and convenient(2) way as well as diversify their gold holdings across issuer, custodian and geographies.
ETFS Physical Swiss Gold Shares are backed by physical gold bullion held by J.P. Morgan in fortified vaults in Zurich, Switzerland. The Shares represent a direct interest in physical gold bullion owned by the Trust. Shares can only be issued when bullion is delivered into the Trust account at the Custodian’s vault, which is independently inspected twice a year by Inspectorate International. An appointed Trustee must approve all deposits and withdrawals of Bullion held by the Custodian.
The physical gold bullion of the Trust is subject to minimal counterparty or credit risks, which differentiates with other product offerings that achieve bullion exposure through the use of derivatives. For the specific risks associated with the ETFS Gold Trust, please see the risks and important considerations below.
The launch of ETFS Physical Swiss Gold Shares follows the successful launch by ETF Securities USA LLC of ETFS Silver Trust as of July 24, 2009. The Trust has quickly gathered over USD $111 million in asset under management as of September 3, 2009 with daily volumes averaging $2 million.
Commenting on the launch, William Rhind, Head of Sales & Marketing for ETFS Marketing LLC, commented:
“The launch of ETFS Physical Swiss Gold Shares (SGOL) highlights ETF Securities commitment to the US market. We are very proud to introduce the first ETF backed by physical gold held in Switzerland to the US market. Investors have been asking us for a long time to develop a product that stores its gold in Switzerland. As a result of that feedback, we are excited to be able to offer investors a new way to invest in the Gold market and an efficient way to geographically diversify their gold holdings.”
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
The ETFS Gold Trust (Registration No. 333-158221) has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Trust, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling collect 1-212-918-4954. The Trust’s prospectus is also available, free of charge, at the website of ETF Securities USA LLC here.
The ETFS Gold 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 Trust 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 silver bullion in a traditional allocated silver bullion account.
(2) The Shares will trade on the NYSE Arca and will provide institutional and retail investors with indirect access to the silver bullion market.
(3) Ordinary brokerage fees do apply.
Graham Tuckwell and William Rhind are registered representatives of ALPS Distributors Inc.
Risks and Important Considerations
The value of the Shares relates directly to the value of the Gold held by the Trust and fluctuations in the price of Gold could materially adversely affect an investment in the Shares. Several factors may affect the price of Gold, including: A change in economic conditions, such as a recession, can adversely affect the price of Gold. Gold is 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 Gold 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 Gold, it could cause a decline in world Gold prices, negatively impacting the price of the Shares. There is a risk that part or all of the Trust's Gold 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 Trust is new and has limited operating history. Commodities and futures 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 Trust.
Shares in the Trust 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 ETF 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 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.
Contacts for Press:
William C. Ferri
Intermarket Communications
(212) 754-5428
bferri@intermarket.com
Laura Stevens
ETF Securities
+44 20 7448 4351
laura.stevens@etfsecurities.com
All Other US Inquiries:
(212) 918-4954
info@etfsecurities.com
ETFS Marketing LLC
48 Wall Street, 11th Floor
New York City
NY10005
ETF000140 10/31/2009
ETFS Physical Silver Shares are issued by the ETFS Silver Trust. ETFS Physical Swiss Gold Shares are issued by the ETFS Gold Trust. ETFS Physical Platinum Shares are issued by the ETFS Platinum Trust. ETFS Physical Palladium Shares are issued by the ETFS Palladium Trust.
ETFs = Exchange Traded Funds
Important Risks
The value of the Shares relates directly to the value of the precious metal held by the Trusts and fluctuations in the price could materially adversely affect an investment in the Shares. Several factors may affect the price of precious metals, including:
A change in economic conditions, such as a recession, can adversely affect the price of the precious metal held by the Trusts. Some metals 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 the precious metal held by the Trusts or producing companies, it could cause a decline in world precious metal prices, adversely affecting the price of the Shares.
Also, should the speculative community take a negative view towards the precious metal held by the Trusts, it could cause a decline in prices, negatively impacting the price of the Shares.
There is a risk that part or all of the Trusts' physical precious metal 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. 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.
The Trusts 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.
Please refer to the prospectus for complete information regarding all risks associated with the Trusts.
Shares in the Trusts are not FDIC insured and may lose value and have no bank guarantee.
Investors buy and sell shares on a secondary market (i.e., not directly from Trusts). Only market makers or "authorized participants" may trade directly with the Trusts, typically in blocks of 50k to 100k shares.
Carefully consider each Trusts' investment objectives, risk factors, and fees and expenses before investing.
ALPS Distributors, Inc. is the marketing agent for ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust and ETFS Palladium Trust.
For further discussion of the risks associated with an investment in the Trusts please read the prospectus.
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