ETF Securities Quarterly Global Commodity ETP Report Now Available to Investment Community in the United States

NEW YORK, Nov. 1, 2011 /PRNewswire/ -- ETF Securities (US) LLC (ETFS) today launched the Global Commodity ETP Quarterly Report(1) in the United States – the most comprehensive overview of trends in the global commodity exchange traded products markets. Commenting on the unveiling of the report for ETF Securities in the U.S., William Rhind, Managing Director, said:

"We are extremely pleased to share what we believe is the state-of-the-art overview of trends in our industry with our clients and investors in the United States. Our mission is for ETF Securities to become the leading provider of commodity ETPs in the United States. We remain committed to serve our clients and investors here with the best information available in the commodity ETP space."

Key findings from ETF Securities' Global Commodity ETP Quarterly for Q3 2011 include:

Exchange traded product (ETP) assets rose US$3.7bn in Q3 2011 to reach a record quarterly high of US$178.2bn, a remarkable achievement given the substantial financial and economic turbulence during the quarter.  The strong headline figure, however, masks highly divergent trends at a sector level, with precious metal ETP assets surging by US$11.8bn during the quarter and all other commodity ETP sectors seeing assets fall by US$8.1bn.  Gold was in fact the only bright spot, with a combination of price gains and new investor inflows pushing gold ETP assets up US$13.7bn to a record quarter-end high of US$121.7bn.

• Global commodity ETP assets reach a new quarterly high of US$178.2bn in Q3 2011

Global commodity exchange traded product (ETP)(2) assets totalled US$178.2bn at the end of Q3 2011, boosted by strong investor demand for precious metals ETPs.

• Gold ETPs led the way with inflows(3) of US$5.8bn in Q3 2011

Gold ETPs accounted for most of the growth in precious metals ETP AUM during the quarter. Almost all of the inflows occurred in July, when the combination of the US budget ceiling stand-off, anticipation of Standard & Poor's removal of the US's AAA sovereign rating, and deteriorating sovereign conditions in Europe drove gold ETP inflows up US$5.6bn, the second largest monthly increase on record. Around 70% of these inflows were into US listed ETPs, indicating US investors were particularly shaken by the anticipate US sovereign downgrade and budget stand-off. The surge in gold ETP demand in July 2011 is surpassed only by the record-breaking US$7.1bn increase in May 2010 when Greece's debt problems changed investors' perceptions of the long-term viability of the Euro.  In August and September most the net gold buying was in European listed physically-backed gold ETPs (US ETPs saw modest net outflows), indicating growing sovereign contagion to Italy and Spain and rising European banking sector risks took over as the key driver of gold demand during the final two months of the quarter.

• Non-precious metal commodity ETP assets decline as investors turn risk-averse

Weakening global growth and rising concerns about sovereign debt caused assets in almost all non-precious metal commodity ETPs to fall as investor de-risking drove prices lower and caused a re-direction of investor flows into cash and G3 government bonds(4).  In the year to September, non-precious metal ETPs experienced net outflows of US$5.6bn.   Broad diversified commodity ETPs, after seeing extremely strong inflows in the first  four months of the year when global growth was rising and risk appetite was strong, have seen the largest outflows, with US$1.4bn leaving the funds in Q3 2011.  Agriculture saw the next largest outflows of US$692m, followed by energy with US$586m of outflows (concentrated in natural gas and oil) and finally industrial metals with US$275m of outflows.

Commenting, Nicholas Brooks, Head of Research and Investment Strategy, said:

"It has been a turbulent year for commodity ETPs, with rising growth and risk appetite in the first few months of the year driving strong demand for more cyclical commodities, and then the downturn in global growth and falling risk appetite driving these flows out over the summer and through the third quarter.  The one constant has been strong demand for precious metals ETPs – particularly gold – as investors have sought out physically-backed gold ETPs as a hedge against currency debasement risks and the generalised rise in European sovereign and financial sector default risks. With developed economy sovereign risks and the need for low to negative real interest rates likely to remain in place well into 2012, demand for physically-backed precious metals ETPs is likely to remain well supported.  As the sovereign debt issues are addressed and global growth regains its footing, broad commodity ETP flows may increase as well. "

Notes to Editors:

About ETF Securities

ETF Securities is a leading, independent exchange-traded products provider with expertise in commodities. Our innovative work in this asset class is complemented by specialist capabilities in foreign exchange, as well as thematic equities-like resources, transportation and listed infrastructure. We are dedicated to developing liquid, transparent investment solutions that can be traded on world stock exchanges.

The company has a strong history of product innovation and this remains a key tenet of our guiding philosophy.  Our management team listed the world's first gold exchange-traded commodity in 2003, and many other market-leading investment solutions have since followed. Today ETF Securities offers what we believe to be the world's most comprehensive range of exchange-traded commodities and as at the end of August 2011 is responsible for more than US$30 billion in global investor assets.

We strive to exceed the expectations of commodity investors worldwide by aiming to deliver best of breed product, insightful investment research and excellent client service.

To learn more about ETF Securities go to: www.etfsecurities.com  

Important Information

ETFS currently has seven listed products in the U.S.: ETFS Physical Swiss Gold Shares (SGOL), ETFS Physical Silver Shares (SIVR), ETFS Physical Platinum Shares (PPLT), ETFS Physical Palladium Shares (PALL), ETFS Physical Precious Metals Basket Shares (GLTR), ETFS Physical White Metal Basket Shares (WITE) and ETFS Asian Gold Shares (AGOL).

Data source: Bloomberg; ETF Securities

Nicholas Brooks and William Rhind are registered representatives of ALPS Distributors, Inc.

The ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust, ETFS Palladium Trust, ETFS Precious Metals Basket Trust, ETFS White Metals Basket Trust, and ETFS Asian Gold Trust are not investment companies registered under the Investment Company Act of 1940 or commodity pools 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.

Description of Exchange-Traded Products

Exchange-Traded Products (ETPs) - the umbrella term used to describe Exchange-Traded Funds (ETFs), Exchange-Traded Commodities (ETCs), Exchange-Traded Notes (ETNs), and US Grantor and other statutory trusts. They are collateralized or uncollateralized open-ended securities listed on a stock exchange tracking an underlying asset.

Risks and Important Considerations

The value of the Shares relates directly to the value of gold, silver, platinum and platinum held by the Trusts and fluctuations in the price of gold, silver, platinum and palladium could materially adversely affect an investment in the Shares. Several factors may affect the price of gold, silver, platinum and palladium including: A change in economic conditions, such as a recession, can adversely affect the price. Gold, silver, platinum, and palladium 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, platinum and palladium prices, negatively impacting the price of the Shares. There is a risk that part or all of the Trusts' gold, silver, platinum, and palladium could be lost, damaged or stolen. Failure by the Custodian or Sub-Custodian to exercise due care in the safekeeping of the precious metals held by the Trusts could result in a loss to the Trusts. Investments in the trust does not constitute a direct investment in the underlying metal.

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 gold, silver, platinum, and palladium that the Trusts may acquire, the Trusts, as they grow, may have an impact on the supply and demand of gold, silver, platinum, and palladium. Please refer to the prospectuses 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 the ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust, ETFS Palladium Trust, ETFS Precious Metals Basket Trust, ETFS White Metals Basket Trust, and ETFS Asian Gold Trust ("the Trusts"). ETF Securities Ltd. and its affiliates are not affiliated with ALPS Distributors, Inc. Certain marketing services may be provided for the Trusts by ETF Securities (US) LLC by ALPS Distributors, Inc.

Although Shares of the Trusts may be bought and sold on the exchange through any brokerage account, they are not individually redeemable directly from the Trusts. Investors may acquire Shares and tender them for redemption through the Trusts 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 platinum 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.

ETFS Physical Asian Gold Shares are issued by the ETFS Asian Gold Trust. ETFS Physical White Metals Basket Shares are issued by ETFS White Metals Basket Trust. ETFS Physical Precious Metals Basket Shares are issued by the ETFS Precious Metals Basket Trust. 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.

(1) The Global Commodity ETP Quarterly is only available to investment professionals.

(2) Commodity Exchange Traded Products (ETPs) include all stock-exchange listed commodity ETFs, ETCs, ETNs, Grantor and other Statutory Trusts. The data does not include ETPs tracking the equities of companies involved in commodities.

(3) "Flows" refers to the net inflows (or outflows) of money into (out of) an ETP. "Assets" or "Assets Under Management" (AUM) refers to net inflows (or outflows) of money multiplied by the ETP's price. Flows therefore measure net new purchases/sales of an ETP excluding the impact of price changes of the ETP.  "Assets" include the impact of changes in the ETP's price.

(4) Refers to sovereign debt issued by France, Germany or the United Kingdom.

ETF000420  10/27/2012

SOURCE ETF Securities

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