ETF Securities US Sees Strong Inflows into Gold as Investors Seek Safety amid Volatile Markets
NEW YORK, June 27, 2016 /PRNewswire/ -- ETF Securities USA LLC, the sponsor to the ETFS Gold Trust ("the Trust") today announced that assets in its ETFS Physical Swiss Gold Shares ETF (NYSE Arca: SGOL) have surpassed U.S. $1 billion. Inflows into the third largest gold ETF in the U.S. continue amid volatile equity markets.
About ETFS Physical Swiss Gold Shares (SGOL)
Launched on September 9, 2009, SGOL is one of the leading U.S. commodity-based ETFs which provides investors with simple, secure and cost-effective access to the gold bullion market. SGOL is modelled after the ETFS Gold Bullion Securities (GBS), the first physically-backed precious metal ETF in the world developed by ETF Securities (UK) in 2003*.
Designed to reduce the barriers to investing in gold, SGOL holds physically-allocated gold bullion bars in secure vaults in Zurich, Switzerland with the objective of reflecting the performance of the price of gold bullion, less expenses. The Trust is priced off the London Bullion Market Association's specifications for Good Delivery, is an internationally recognized and transparent benchmark for pricing physical gold. Inspectorate International Limited, a leading commodity inspection and testing company, inspects the vault two times annually, once at random.
Commenting on this record-setting performance, Steven Dunn, executive director and head of U.S. distribution, said:
"Precious metals, especially gold, remain the cornerstone of our product offering. We believe this performance, while undoubtedly aided by current market conditions, is also due to the ongoing investment we have made in our distribution and research capabilities in recent months. In addition to my appointment in September 2015, we also hired a director of strategic partnerships and a head of U.S. Product Operations. These hires demonstrate our commitment to expanding our U.S. market share and positioning the firm for substantial growth."
James Butterfill, head of research and investment strategy, added:
"In light of the recent and unexpected Brexit event we have adjusted our year end fair value of gold to $1400. We expect sentiment towards gold to remain buoyant during this extended period of uncertainty. We believe investors are buying gold as an insurance asset, a hedge against tail-risks and spikes in volatility that seem increasingly likely against the backdrop of geopolitical tensions and anti-establishment sentiments in the political arena."
ETF Securities developed the world's first gold ETP[1]. Today the company offers the third largest gold ETP in the U.S., the largest gold ETP in Australia and the largest gold ETP platform in Europe[2]. In Europe, ETF Securities gathered 44% of all gold ETP flows since the start of the year[3].
About ETF Securities
ETF Securities – The intelligent alternative
ETF Securities was founded on the principle of being a specialist ETP provider. We are a proven innovator in commodities, beginning in 2003 as the developer of the world's first gold ETP.* As the needs of investors evolved, we responded by broadening our product offering across multiple asset classes to become the global influencer we are today.
ETF Securities now offers over 360 ETPs that trade on nine exchanges on four continents. We're building upon that same history of growth and diversity in the U.S. market, relying on innovation and unique partnerships to enable investors to intelligently diversify their portfolios and seek superior risk-adjusted returns.
For further information, please visit: www.etfsecurities.com.
*ETF Securities listed the world's first gold exchange-traded commodity in 2003
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Important Information
The ETFS Gold Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for the purpose of the Commodity Exchange Act. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. This investment is not suitable for all investors. A trust that focuses on a single commodity generally experiences greater volatility. There are special risks associated with short selling and margin investing.
Commodities and futures generally are volatile and are not suitable for all investors.
The value of the Shares relates directly to the value of the gold held by the Trust and fluctuations in the price could materially adversely affect 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 the gold held by the Trust. Gold is used in a wide range of 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 gold held by the Trust or producing companies, it could cause a decline in world gold 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 prices, negatively impacting the price of the Shares.
There is 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 gold held by the Trust could result in a loss to the Trust. The Trust will not insure its gold and shareholders cannot be assured that the custodian will maintain adequate insurance or any insurance with respect to the gold held by the custodian on behalf of the Trust. Consequently, a loss may be suffered with respect to the gold held by the Trust that is not covered by insurance.
Investors buy and sell shares on a secondary market (i.e., not directly from trust).
Only market makers or "authorized participants" may trade directly with the fund, typically in blocks of 50k to 100k shares.
The Fund's net asset value per share (NAV) is calculated by dividing the value of the Fund's total assets less total liabilities by the number of shares outstanding. Market price returns are based on the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times.
Shares in the Trust are not FDIC insured and may lose value and have no bank guarantee. This material must be accompanied or preceded by the prospectus. Carefully consider the Trust's investment objectives, risk factors, and fees and expenses before investing. Please view the prospectus at http://etfsecurities.com/etfsdocs/USProspectus.aspx or visit the ETF Securities website: www.etfsecurities.com.
Brexit is an abbreviation of "British exit", which refers to the June 23, 2016 referendum by British voters to exit the European Union.
Steve Dunn is a registered representative of ALPS Distributors, Inc.
ALPS Distributors, Inc. is the marketing agent for the ETFS Gold Trust.
ETF000966 4/20/2017
[1] Source: ETF Securities listed the world's first gold exchange-traded commodity in 2003
[2] Source: Bloomberg as of 4.30.2016
[3] Source: Bloomberg as of 4.30.2016
SOURCE ETF Securities USA LLC
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