SGOL leads in growth among other physical gold exchange
traded funds at 15% year to date:
Fund Issuer Ounces Change YTD Change YTD % North America ETF
Securities 350 45.0
15% State Street 40765 4317.9 12%
iShares 2765 214.6 8%
Total 44237 4216.5
11%
Source: Bloomberg
Gold price reaches new
all-time highs in 3 major currencies: USD Gold price
reaches $1250 Oz. Sterling Gold is now at a record high of £868 Oz
and Euro Gold is also at a record high of €1050 Oz. All as of June
8, 2010
ETF Securities USA LLC (ETFS) announced today that the total
assets under management of its ETFS Physical Swiss Gold Shares
(SGOL) passed the $500 Million mark as of June 8, 2010. In the
opinion of ETF Securities, recent flows into SGOL have largely been
driven by investors’ lack of confidence in paper currencies coupled
with an increasingly uncertain economic outlook.
ETFS Gold Trust
The objective of the ETFS Gold Trust’s (SGOL) shares reflect the
performance of the price of gold, less the Trust’s expenses. The
Trust is open ended and is designed for investors who want a
cost-effective (1) and convenient (2) way to invest in gold as well
as diversify their precious metal holdings. SGOL has an expense
ratio of 0.39% (3) per annum.
ETFS Gold Trust (SGOL) is backed by allocated gold bullion and
stored in secure vaults in Switzerland by the Custodian, JPMorgan
Chase Bank, N.A., one of the world's leading Custodians for
precious metals. The Shares represent an interest in physical gold
owned by the Trust. The physical gold of the Trust is subject to
minimal counterparty or credit risks, which contrasts with other
offerings that achieve bullion exposure through the use of
derivatives.
ETF Securities is the first US ETF Sponsor to provide investors
with access to a full suite of precious metal ETFs. Investors can
now trade physically backed gold, silver, platinum and palladium
ETFs from the same provider. ETFS recently announced total assets
under management in the four US physically backed products exceed
$1.5B in AUM as of June 3, 2010.
The four precious metal ETFs have the following key
features:
- Track spot price of underlying
metal less associated management fees
- 100% physically backed by London
Bullion Markets Association (LBMA) Good Delivery bullion bars –
minimal counterparty risk
- Gold vaulted in Switzerland
- Silver, platinum & palladium
vaulted in London and Switzerland
- Bullion holdings audited by
specialist audit firm biannually—audit reports published on the
website www.etfsecurities.com
- Bullion bar list published on
website
- Cost effective(1)
Commenting on this milestone for ETF Securities in the US,
William Rhind, head of sales & marketing for ETFS Marketing
LLC, stated:
“Reaching $500 million in such a short time is great news. SGOL
caters to investors who want their physical gold vaulted in
Switzerland. With gold making new highs in multiple currencies, I’m
confident that SGOL can continue to appeal to investors.”
For more information please contact the US marketing agent, ETFS
Marketing, at 212-918-4954, or visit our website:
www.etfsecurities.com
The ETFS Gold Trust, ETFS Silver Trust, ETFS Palladium Trust
and ETFS Platinum 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 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.
(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 Gold, Silver, Palladium and Platinum bullion in a
traditional allocated Gold and Silver bullion account.
(2) The Shares trade on the NYSE Arca and will provide
institutional and retail investors with indirect access to the
Gold, Silver, Palladium and Platinum bullion market.
(3) Ordinary brokerage fees do apply.
William Rhind 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. Investments in the trusts do not constitute a direct
investment in the underlying metals.
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.
ETF000227
12/31/10
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