ETFS Physical Palladium Shares (PALL) Breaks $1 Billion in Assets

ETF Securities:

  • Assets under Management: Total assets for PALL now exceed $1 Billion as of February 16th, 2011.
  • Total US AUM: ETF Securities AUM in all 7 physical precious metal Exchange Traded Products (ETPs) now stands at $3.8 Billion as of February 16th, 2010.

Commenting on the AUM milestone for PALL; William Rhind, Head of Sales & Marketing for ETFS Marketing LLC, said:

"PALL reaching $1 Billion is another landmark event for ETF Securities in the US. PALL is now our second ETP to cross $1 Billion after ETFS Physical Gold Shares (SGOL). The interest in both PALL and its sister product, ETFS Physical Platinum Shares PPLT may indicate broader investor awareness to gain commodities exposure into more industrial-oriented metals at this juncture.”

ETFS Palladium Trust (PALL)

The objective of the ETFS Palladium Trust (PALL) shares is to 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.

ETFS Palladium Trust (PALL) is backed by 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 palladium bullion owned by the Trust. The physical 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.

ETFS Gold Trust, ETFS Palladium Trust and ETFS Platinum 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. 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 bullion in a traditional allocated bullion account. Ordinary brokerage fees do apply.

(2) The Shares will trade on the NYSE Arca and will provide institutional and retail investors with indirect access to the Gold bullion market.

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 held by the Trust and fluctuations based on the price of gold could materially and 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. 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 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 gold held by the Trust could result in a loss to the Trust. Investments in the trust do not constitute a direct investment in the underlying metals.

Commodities generally are volatile and are not suitable for all investors. Trust’s focusing on a single commodity generally experience greater volatility. Since there is no limit on the amount of gold that the Trust may acquire, the Trust, as it grows, may have an impact on the supply and demand of gold. 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 Platinum Trust and ETFS Palladium Trust. Certain marketing services may be provided for the ETFS Trusts.

ALPS Distributors, Inc. is unaffiliated with JPMorgan Chase.

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.

ETF000353 12/31/11


Intermarket Communications
Sophia Pogoff, 212-754-5448

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