Etikett: Morgane Delledonne

Investors seek to take profits on precious and industrial metals

ETF Securities Investors seek to take profits on precious and industrial metalsInvestors seek to take profits on precious and industrial metals

ETF Securities Weekly Flows Analysis – Investors seek to take profits on precious and industrial metals

  • Investors are taking profits on gold and silver as they reach multi months highs
  • Crude oil ETPs recorded moderate outflows as US refineries recover from storm Harvey
  • Investors are taking profits on industrial metals after a two-digit price increase year-to-date

Download the complete report (.pdf)

Investors reduced their long positions in gold and silver ETPs. We saw US$354.5mn and US$116.7mn out of our gold and silver ETPs respectively last week. The gold price is hovering around its highest level in twelve months, supported by the weakness of the US dollar and stock market declines. Fading market expectations of further Fed rate hikes, North Korea tensions and natural disasters are likely to prevent the US dollar from rising in the short term. Stanley Fischer, unexpectedly announced last week his resignation as Vice Chairman of the Fed for personal reasons. His departure from the Fed has increased uncertainty about the new governance of the Fed and the conduct of the future monetary policy. In addition, the ongoing bipartisan dispute over the increase of the US debt ceiling is also likely to lend further weaknesses to the US dollar as we move toward year end.

We saw US$26.3mn of outflows from oil ETPs as crude oil stocks are expected to rise. Oil prices gained 2% last week as refining capacity in the US increased after temporary shut-down in the wake of Tropical Storm Harvey. The US dollar weakened and talks between Russia and Saudi Arabia about a possible extension to the production cuts among OPEC producers added a tail-wind to crude oil prices. Hurricane Irma, ranked in the highest category, has reached Florida during the weekend, threatening the crude oil and natural gas production facilities and oil trading. The threat to pipeline infrastructure and refining capacity will again weaken crude oil prices and increase gasoline prices (as we saw on Friday). The US Department of Energy (DOE) weekly report has revealed a strong increase in US crude oil stocks in the week ending on the 1st of September as a result of Harvey. Hurricane Irma is likely to see crude stocks continue to rise while gasoline stocks decline.

Investors taking profits on industrial metals after prices slipped. We saw US$119.9mn of outflows from our industrial metals ETPs last week after metals experienced a moderate price correction on the back of falling US stock markets. While the overall global macroeconomic outlook remains supportive to commodity demand, prices are likely to face an unwind in speculative positioning as investors seek to take profit. Copper ETPs saw the largest outflows (US$65.5mn) since October 2014. Year-to-date, copper ETPs attracted US$41.7mn on the back of strong price performance (+18.4%).

Agriculture ETPs attracted US$43.3mn of inflows last week. A massive 8.1- magnitude earthquake hit Mexico’s southern coasts last Friday, causing tsunami waves. This natural disaster threatens production of Arabica coffee in Mexico and Central America, a region which accounts for 20% of the global output. The damages could slow down the upcoming harvest of Mexican coffee in October and possibly drive the price of coffee higher.

Video Presentation

Morgane Delledonne, Fixed Income Strategist at ETF Securities provides an analysis of last week’s performance, flow and trading activity in commodity exchange traded products and a look at the week ahead.

For more information contact

ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E info@etfsecurities.com

Important Information

General

This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority.

This is a strictly privileged and confidential communication between ETFS UK and its selected client. This communication contains information addressed only to a specific individual and is not intended for distribution to, or use by, any person other than the named addressee. This communication (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, and (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments. If you are not the named addressee, you should not disseminate, distribute or copy this communication. Please notify the sender immediately if you have mistakenly received this communication. When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited.

This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.

This document may contain independent market commentary prepared by ETFS UK based on publicly available information. ETFS UK does not warrant or guarantee the accuracy or correctness of any information contained herein and any opinions related to product or market activity may change. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data.

Any historical performance included in this document may be based on back testing. Back tested performance is purely hypothetical and is provided in this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance.

Historical performance is not an indication of or a guide to future performance.

The information contained in this communication is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision.

ETFS UK is required by the United Kingdom Financial Conduct Authority (”FCA”) to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.

Risk Warnings

Any products referenced in this document are generally aimed at sophisticated, professional and institutional investors. Any decision to invest should be based on the information contained in the prospectus (and any supplements thereto) of the relevant product issue. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may valued in currencies other than those in which there are priced and will be affected by exchange rate movements. Investments in the securities which provide a short and/or leveraged exposure are only suitable for sophisticated, professional and institutional investors who understand leveraged and compounded daily returns and are willing to magnify potential losses by comparison to investments which do not incorporate these strategies. Over periods of greater than one day, investments with a short and/or leveraged exposure do not necessarily provide investors with a return equivalent to a return from the unleveraged long or unleveraged short investments multiplied by the relevant leverage factor. Investors should refer to the section entitled ”Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in any securities referenced in this communication.

If you have any questions please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.

Investors sold gold as geopolitical tensions abate

Investors sold gold as geopolitical tensions abate

ETF Securities Weekly Flows Analysis – Investors sold gold as geopolitical tensions abate

  • Investors reduced gold holdings as geopolitical tensions abate.
  • President Trump’s unclear commitment to pro-growth policies weaken the US dollar.
  • Oil ETPs saw outflows continue for fifth consecutive week.
  • Investors take profits on strong year-to-date emerging market local bonds performance.

Download the complete report (.pdf)

We saw US$107mn of outflows from our gold ETPs as geopolitical tensions eased. US July retail sales and the Empire Manufacturing Index for August surprised to the upside and resulted in a strengthening of the US dollar and rising US bond yields last week, while putting downward pressures on the gold. Gold price pared losses in the later course of the week while the US dollar shed some of its gains amid concern about outlook for President Donald Trump’s administration. President Trump’s announced that two business advisory councils were to shut down. On Friday, gold price rose on higher demand for safe haven assets after the two terrorist attacks in Barcelona.

Short USD inflows increase after FOMC minutes revealed no consensus at the Fed. The minutes of the latest meeting of the FOMC reflected the lack of consensus within the Fed on the conduct of next monetary policy actions. In addition, the unclear commitments of Trump’s administration around pro-growth policy also lent weaknesses to the US dollar. Last week inflows into short USD-long EUR ETPs rose by US$3.6mn, despite ECB’s concern about the strength of the euro as revealed in the minutes of the July meeting. In aggregate there were US$13.3mn of inflows into short USD ETPs since the beginning of the month.

Oil ETP outflows continue for 5th consecutive week, totalling US$214mn on the month. Investors have withdrawn US$17.9mn from long oil ETPs, probably taking profits as crude prices are still up nearly 7.8% over the past month. US crude production rose to a two-year high of 9,502 thousand barrels per day according to Energy Information Administration data on Wednesday, partly offsetting the efforts of the OPEC countries to scale down the global glut. We expect oil to continue to trade between US$40-55/bbl.

Outflows from Emerging Market government bond ETPs after four weeks of consecutive inflows. We saw US$21.5mn of outflows this week, while year-to-date inflows into emerging market debt ETPs remain elevated at US$63.7mn. After gains in local government bonds of around 11% this year, investors are taking profit from the strong performance of EM debt in local currency since January in anticipation of a stronger US dollar that could challenge EM assets.

Video Presentation

Morgane Delledonne, Fixed Income Strategist at ETF Securities provides an analysis of last week’s performance, flow and trading activity in commodity exchange traded products and a look at the week ahead.

For more information contact

ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E info@etfsecurities.com

Important Information

General

This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority.

This is a strictly privileged and confidential communication between ETFS UK and its selected client. This communication contains information addressed only to a specific individual and is not intended for distribution to, or use by, any person other than the named addressee. This communication (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, and (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments. If you are not the named addressee, you should not disseminate, distribute or copy this communication. Please notify the sender immediately if you have mistakenly received this communication. When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited.

This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.

This document may contain independent market commentary prepared by ETFS UK based on publicly available information. ETFS UK does not warrant or guarantee the accuracy or correctness of any information contained herein and any opinions related to product or market activity may change. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data.

Any historical performance included in this document may be based on back testing. Back tested performance is purely hypothetical and is provided in this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance.

Historical performance is not an indication of or a guide to future performance.

The information contained in this communication is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision.

ETFS UK is required by the United Kingdom Financial Conduct Authority (”FCA”) to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.

Risk Warnings

Any products referenced in this document are generally aimed at sophisticated, professional and institutional investors. Any decision to invest should be based on the information contained in the prospectus (and any supplements thereto) of the relevant product issue. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may valued in currencies other than those in which there are priced and will be affected by exchange rate movements. Investments in the securities which provide a short and/or leveraged exposure are only suitable for sophisticated, professional and institutional investors who understand leveraged and compounded daily returns and are willing to magnify potential losses by comparison to investments which do not incorporate these strategies. Over periods of greater than one day, investments with a short and/or leveraged exposure do not necessarily provide investors with a return equivalent to a return from the unleveraged long or unleveraged short investments multiplied by the relevant leverage factor. Investors should refer to the section entitled ”Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in any securities referenced in this communication.

If you have any questions please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.

Gold hit by central banks hawks

Gold hit by central banks hawks

ETF Securities Weekly Flows Analysis – Gold hit by central banks hawks

  • Gold ETPs saw large outflows on increased expectations of monetary policy normalisation.
  • Positive surprise from Chinese manufacturing activity supported demand for industrial metals ETPs.
  • Temporary factors boosted crude oil prices and inflows into oil ETPs.

Download the complete report (.pdf)

Largest weekly outflows from Gold ETPs since December last year.

We saw US$160mn of outflows from gold ETPs last week after hawkish comments from the ECB and BOE and higher-than-expected German inflation. The increased expectations of monetary policy normalisation resulted in a sovereign bond sell-off and rising risk appetite. US 10-year Treasury yields rose by 12bps while European 10-year sovereign bond yields rose by an average of 21bps, to their highest level since December 2015. In January 2017, we published our forecast for the gold price at US$1230/oz by year-end. We remain largely on track with that trajectory, with gold falling below US$1250/oz last week. With the gradual rise of global real yields, we believe that gold prices will continue to trend down to US$1230/oz. Although the downside risk for gold prices will be contained by the gradual nature of rate increases, and on-going tail risks. While the US dollar has been soft recently relative to other currencies, a rising rate environment will be US dollar positive and gold price negative in the second half of the year.

Industrial metals ETFs saw large inflows this week with US$55mn.

The publication of the Chinese official Purchasing Managers’ Index numbers for the manufacturing sector last Friday surprised to the upside, rising from 51.2 in May to 51.7 in June. The sub-components of the index suggest that the manufacturing sector was supported by rising demand from abroad as export orders strongly increased, while there are indications of growing domestic demand. Despite improving industrial sentiment, metal price gains were capped at 2.3%, because weak Asian stock markets acted as a counterweight.

Crude oil ETPs attracted almost US$24mn of inflows last week.

Oil prices gained 6% last week, with Brent and WTI reaching US$47.5 and US$44.9 per barrel respectively as of last Friday, despite the surprise build in US crude oil inventories. The US Energy Information Administration reported a 118k barrels increase in US inventory from the previous week. The price gains were likely resulting from the decline in US crude oil production by 100,000 barrels per day on the week of the 19th of June. However, this is potentially a one-off price shock as it partly reflects the temporary interruption of the production in the Gulf of Mexico during the tropical storm Cindy two weeks ago.

Equity ETFs saw the highest inflows this week with US$29mn.

Gold miner ETFs saw significant inflows for three consecutive weeks, totalling US$81mn. Investors generally see gold miners as distinct from gold allocation. Other thematic ETPs such as robotics and cyber security remain popular with US$4mn and US$18.5mn of inflows last week respectively.

Video Presentation

Morgane Delledonne Fixed Income Strategist at ETF Securities provides an analysis of last week’s performance, flow and trading activity in commodity exchange traded products and a look at the week ahead.

For more information contact

ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E info@etfsecurities.com

Important Information

General

This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority.

This is a strictly privileged and confidential communication between ETFS UK and its selected client. This communication contains information addressed only to a specific individual and is not intended for distribution to, or use by, any person other than the named addressee. This communication (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, and (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments. If you are not the named addressee, you should not disseminate, distribute or copy this communication. Please notify the sender immediately if you have mistakenly received this communication. When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited.

This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States.

This document may contain independent market commentary prepared by ETFS UK based on publicly available information. ETFS UK does not warrant or guarantee the accuracy or correctness of any information contained herein and any opinions related to product or market activity may change. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data.

Any historical performance included in this document may be based on back testing. Back tested performance is purely hypothetical and is provided in this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance.

Historical performance is not an indication of or a guide to future performance.

The information contained in this communication is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision.

ETFS UK is required by the United Kingdom Financial Conduct Authority (”FCA”) to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.

Risk Warnings

Any products referenced in this document are generally aimed at sophisticated, professional and institutional investors. Any decision to invest should be based on the information contained in the prospectus (and any supplements thereto) of the relevant product issue. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may valued in currencies other than those in which there are priced and will be affected by exchange rate movements. Investments in the securities which provide a short and/or leveraged exposure are only suitable for sophisticated, professional and institutional investors who understand leveraged and compounded daily returns and are willing to magnify potential losses by comparison to investments which do not incorporate these strategies. Over periods of greater than one day, investments with a short and/or leveraged exposure do not necessarily provide investors with a return equivalent to a return from the unleveraged long or unleveraged short investments multiplied by the relevant leverage factor. Investors should refer to the section entitled ”Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in any securities referenced in this communication.

If you have any questions please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.

Frexit less likely but domestic challenges

Frexit less likely but domestic challenges

Market’s participants welcomed the lead of Macron in the first round of the French presidential elections. The euro jumped 1.3% and French equities are up 4% led by French banks. We believe the excessively high OAT-Bund yield spreads will continue to tighten gradually as we get closer to the second round of the presidential elections and the Parliamentary elections. Frexit less likely but domestic challenges

As predicted by the recent opinion polls, Macron (Centrist) and Le Pen (Far-right) won the first round with Macron ahead. The election boasts a participation rate estimated at around 77%. Macron won with almost 23.8% of the votes while Le Pen gathered 21.5%. Fillon and the Republicans were defeated with 19.9%, while far-left Mélanchon lost with 19.6%. The centrist Macron gathered 23.8%, while the Right/Far right together gathered 47.4% and the Left/Far left gathered 27.6% as of Sunday 23 April.  Despite the fact that the majority of the votes went to the right-wing parties, Republicans’ leaders have already called to vote for Macron at the second round as did President Holland leading the Socialist party, increasing the chance for Macron to win the election. The probability of Macron winning the elections now stands at 62% according to the latest polls. According to Ipsos, 48% of Fillon’s voters will vote for Macron in the second round as well as 62% of Melanchon’s voters and 79% of Socialist Hamon’s voters. Only a minority of far-Left Melanchon’s voters (9%) – sensible to the protectionist economic programme of the far-Right – indicated to switch their votes to Le Pen’s, and only 33% of voters of Fillon – sensible to the security programme of the far-Right – are likely to vote for Le Pen in the second round.

Market’s participants welcomed the news. The French OAT- German Bund yield spreads tighten by 16bps as market’s pricing as Macron winning the elections looks likely with many French political leaders now supporting him in an effort to block the Far-right Le Pen. The euro jumped by 1.26% this morning against the US dollar to 1.0863 and French CAC stocks gained 4% and French banks climbed by 8% in average in the early session, while defensive assets dropped. Gold price declined 1% to US$1271 this morning, while 10-yr Treasury yields rose from 14bps to 2.3%.

After the second round of the presidential elections, the next decisive step for France will be to elect the Parliament in a month and a half from now. While it is almost certain that Marine Le Pen will not get a majority, it is still unclear how Macron will without the help of both the Socialist and Republicans groups. The uncertainty around the ability of Macron to gain a majority of seats in the Parliament to pass on his reforms will likely continue to weigh on the French-German government bond spreads in the next six weeks.

Morgane Delledonne, Fixed Income Strategist at ETF Securities

Morgane Delledonne joined ETF Securities as Fixed Income Strategist in 2016. Morgane has an extensive experience in Monetary policy, Fixed Income Markets and Macroeconomics gained at the French Treasury’s Office in Washington DC and most recently in her role as Macroeconomist and Strategist at Pictet&Cie in Geneva. Morgane holds a Bachelor of Applied Mathematics from the University of Nice Sophia Antipolis (France), a Master of Economics and Finance Engineering and a Master of Economic Diagnosis from the University of Paris Dauphine (France).

No change in the Fed’s dot plot boosts gold prices

No change in the Fed’s dot plot boosts gold prices

ETF Securities Weekly Flows Analysis – No change in the Fed’s dot plot boosts gold prices   

  • Strong inflows into precious metals ETPs (US$99mn) after no change in the Fed’s dot-plot.
  • Inflows into crude oil intensified last week as US stocks drop.
  • Investors took profits on EUR gains after the Dutch elections results.
  •  

No change in the Fed’s dot-plot boost precious metals. US$84.5mn of inflows into gold ETPs last week reversed the prior two weeks of outflows (US$71mn). As expected, the Fed raised interest rates by 25bps. However, the Fed left its so called dot-plot (its own estimate of where interest rates will end up) unchanged with three rate hikes this year, followed by another three in 2018. Its forecasts for growth and inflation were broadly unchanged. The more dovish-than-expected outlook lead the US dollar and yields on 10-yr US Treasuries to fall significantly, supporting gold price. Gold prices rose 1.7% following the Fed’s announcement. We expect the gold price to increase by 5 to 6% by mid-year, but decline toward current levels by year end.

Inflows into crude oil intensified last week as US stocks drop. We saw a second consecutive week of inflows into crude oil ETPs of US$60.5mn (after US$10mn the week before). Oil prices are recovering after US crude oil inventory were slightly reduced last week, for the first time since early January. Meanwhile, Saudi Arabia has announced willingness to extend production curbs in the second half of the year if global stocks remain above the five-year average.

Investors took profits on long EUR ETPs. We saw a reduction on long positions on EUR ETPs (US$26mn) and an increase in short EUR ETPs (US$23mn) after the euro appreciated 1.6% since the latest ECB meeting on March 9th on the back of expectations that the ECB will adopt a less accommodative policy stance. Meanwhile, the defeat of the far-right Eurosceptic candidate Geert Wilders in the Dutch elections also removed downward pressures on the Euro. We expect the Euro to appreciate by roughly 3% toward mid-year.

Positive economic surprise from China and a weaker US dollar support metal prices. We saw US$51mn of inflows into industrial metals ETPs including US$29mn inflows into copper ETPs after positive economic surprises from China. Both Chinese industrial production and fixed asset investments for February beat expectations, rising 6.3%yoy and 8.9%yoy from 6.0%yoy and 8.3%yoy in January respectively.

This week. March Flash PMIs for the Eurozone, US and Japan will provide investors a gauge for economic activity in the final month of the first quarter. Speeches by Fed Chair, Yellen and dissenting committee voter, Kashkari will be followed for hints of further dovishness.

Video Presentation

Morgane Delledonne, Fixed Income Strategist at ETF Securities provides an analysis of last week’s performance, flow and trading activity in commodity exchange traded products and a look at the week ahead.

For more information contact

ETF Securities Research team ETF Securities (UK) Limited T +44 (0) 207 448 4336 E info@etfsecurities.com

Important Information

General

This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority.

This is a strictly privileged and confidential communication between ETFS UK and its selected client. This communication contains information addressed only to a specific individual and is not intended for distribution to, or use by, any person other than the named addressee. This communication (i) is provided for informational purposes only, (ii) should not be construed in any manner as any solicitation or offer to buy or sell any securities or any related financial instruments, and (iii) should not be construed in any manner as a public offer of any securities or any related financial instruments. If you are not the named addressee, you should not disseminate, distribute or copy this communication. Please notify the sender immediately if you have mistakenly received this communication. When being made within Italy, this communication is for the exclusive use of the ”qualified investors” and its circulation among the public is prohibited. This document is not, and under no circumstances is to be construed as, an advertisement or any other step in furtherance of a public offering of shares in the United States or any province or territory thereof. Neither this document nor any copy hereof should be taken, transmitted or distributed (directly or indirectly) into the United States. This document may contain independent market commentary prepared by ETFS UK based on publicly available information. ETFS UK does not warrant or guarantee the accuracy or correctness of any information contained herein and any opinions related to product or market activity may change. Any third party data providers used to source the information in this communication make no warranties or representation of any kind relating to such data. Any historical performance included in this document may be based on back testing. Back tested performance is purely hypothetical and is provided in this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Historical performance is not an indication of or a guide to future performance. The information contained in this communication is neither an offer for sale nor a solicitation of an offer to buy securities. This communication should not be used as the basis for any investment decision. ETFS UK is required by the United Kingdom Financial Conduct Authority (”FCA”) to clarify that it is not acting for you in any way in relation to the investment or investment activity to which this communication relates. In particular, ETFS UK will not provide any investment services to you and or advise you on the merits of, or make any recommendation to you in relation to, the terms of any transaction. No representative of ETFS UK is authorised to behave in any way which would lead you to believe otherwise. ETFS UK is not, therefore, responsible for providing you with the protections afforded to its clients and you should seek your own independent legal, investment and tax or other advice as you see fit.

Risk Warnings

Any products referenced in this document are generally aimed at sophisticated, professional and institutional investors. Any decision to invest should be based on the information contained in the prospectus (and any supplements thereto) of the relevant product issue. The price of any securities may go up or down and an investor may not get back the amount invested. Securities may valued in currencies other than those in which there are priced and will be affected by exchange rate movements. Investments in the securities which provide a short and/or leveraged exposure are only suitable for sophisticated, professional and institutional investors who understand leveraged and compounded daily returns and are willing to magnify potential losses by comparison to investments which do not incorporate these strategies. Over periods of greater than one day, investments with a short and/or leveraged exposure do not necessarily provide investors with a return equivalent to a return from the unleveraged long or unleveraged short investments multiplied by the relevant leverage factor. Investors should refer to the section entitled ”Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in any securities referenced in this communication. If you have any questions please contact ETFS UK at +44 20 7448 4330 or info@etfsecurities.com for more information.