ETF Securities Ltd (ETFS), one of the world's leading providers of Exchange Traded Product (ETPs), is independently owned and currently has USD $16.6 billion (as of Dec 31, 2009) of assets invested in over 180 of its products globally.
The new listings come from the same management team who created ETFS Physical Swiss Gold Shares (SGOL) and ETFS Physical Silver Shares (SIVR) in 2009 which had combined assets under management of US$492mn as of the end of the year.
ETFS Platinum Trust and ETFS Palladium Trust
The objective of the ETFS Platinum Trust’s (PPLT) shares reflect the performance of the price of Platinum, 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 Platinum as well as diversify their precious metal holdings. Both products have an expense ratio of 0.60% per annum. (3)
The objective of the ETFS Palladium Trust’s (PALL) shares reflect the performance of the price of Palladium, 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 Palladium as well as diversify their precious metal holdings.
ETFS Platinum Trust (PPLT) and ETFS Palladium Trust (PALL) are both backed by Platinum and Palladium allocated bullion in plate and ingot form stored in secure vaults in London & 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 platinum and palladium bullion owned by the Trust. The physical platinum and palladium allocated bullion 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.
Commenting on today’s listing of the new range of physical Commodity ETFs on NYSE ARCA Fred Jheon, Head of Product and Business Developmentof ETFS Marketing LLC, said:
"We are pleased to start 2010 with the anticipated launch of PPLT and PALL. Our decision to launch both products is three fold. First, it comes in the wake of successful and increasing global demand for precious metals through commodity ETFs which have seen strong growth over the past six years. We are proud to be first to market for this unique offering of both physical metals in the US ETF market. Second, it marks another key milestone for our US business as part of our strategy to continually offer more breadth of commodity products to US investors. Thirdly, this clearly establishes ETF Securities as the provider of the most complete physical metal offering with the already listed ETFS Physical Swiss Gold (SGOL) and ETFS Silver (SIVR). We hope that US investors will increasingly see us as the leading provider of commodity ETFs to add to our leading position in Europe and Australasia”
“Unlike many other commodities, precious metals are durable, homogenous and easily stored, enabling the ETFs to be backed by allocated physical ingots or plates which have transparent pricing. As a result, the new physical ETFs save investors from many of the difficulties associated with purchasing precious metals such as access to physical ingots and plates in addition to having to store and insure the bullion.
“Commodity ETFs provide investors with an investment vehicle that tracks the price of precious metals, not a portfolio of equities. Typically uncorrelated to equities, they can provide investors with an additional tool for portfolio diversification.”
For more information please contact the US marketing agent, ETFS Marketing on 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 will 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.
(4) The LPPM Good Delivery list represents the de facto standard for the quality of palladium and platinum bars. Stringent criteria for assaying standards and specifications for weight, dimensions, fineness/purity that identify and validate marks and appearance of the bars must be met to qualify as being London Good Delivery bar.
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.
Stephanie Lowenthal, 212-754-5415
Helen Burden, +44 20 7448 4336
All Other US Inquiries:
ETFS Marketing LLC