ETFS GoldPrimer 022217 B - Aberdeen Standard · 2017-11-10 · Physically backed gold ETFs have a...

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Buy physical gold Buy a physically backed gold ETF Buying Gold Many online outlets sell gold in the form of coins or bars, and will even deliver it to your home, but there are some important details to consider: Physically backed gold ETFs have a number of potential advantages over holding physical gold: Are you getting a fair price? Most online gold retailers make money by selling gold at a premium. is premium may range as high as 44% above the world spot price.1 Fairly priced. When you buy a physically backed gold ETF, you get the world spot price. What exactly are you buying? ere are many factors to keep in mind including the gold’s purity, weight, origin, and the seller’s reputation. Can you verify that you are buying gold of a given purity or weight? Verified. Physically backed gold ETFs pro- vide access to gold that adheres to rigorous purity, fineness, and quality standards. Bars are stamped with a serial number, the bar’s origin, its fineness to 4 significant digits, its weight in troy ounces, and the refiner. How will you keep it safe? Holding physical gold means you will need to secure it with your own safe or vault. Safe and Secure. Gold is stored in a highly secure vault. Can you sell it again later? Physical gold is somewhat illiquid—this means that it may be difficult for individuals to find a buyer and convert their gold back into usable currency. Liquid. Shares of physically backed gold ETFs may be easily bought and sold throughout the trading day, so they can be converted back into cash when needed. Disclosure e ETFS Gold 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 Gold Trust are not subject to the same regulatory requirements as mutual funds. ese investments are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. ere are special risks associated with short selling and margin investing. Commodities and futures generally are volatile and are not suitable for all investors. e value of the Shares relates directly to the value of the precious metal held by the Trust and fluctuations in the price could materially adversely affect investment in the Shares. Several factors may affect the price of precious metals, including: (1) A change in economic conditions, such as a recession, can adversely affect the price of the precious metal held by the Trust Some metals 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; (2) Investors’ expectations with respect to the rate of inflation; (3) Currency exchange rates; (4) Interest rates; (5) Investment and trading activities of hedge funds and commodity funds; and (6) Global or regional political, economic or financial events and situations. Should there be an increase in the level of hedge activity of the precious metal held by the trust or producing companies, it could cause a decline in world precious metal 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 gold price, negatively impacting the price of the Shares. ere is risk that part or all of the Trusts’ physical gold could be lost, damaged or stolen. Failure by the Custodian or Sub-Custodian to exercise due care in the safekeeping of gold held by the Trust could result in a loss to the Trust. e 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 Trust’s gold 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. e 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. is material must be accompanied or preceded by the prospectus. Carefully consider each 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. ALPS Distributors, Inc. is the marketing agent for ETFS Gold Trust. ETF0001108 2/18/2018 Gold gets mined, then becomes a bar, gets verified, and is then priced according to market value. The gold bar then becomes available for sale. $ 1 http://www.24hgold.com/english/gold_market_premium.aspx?ms=1184348D5010 Spot price is the current price in the marketplace at which a given asset such as a security, commodity or currency can be bought or sold for immediate delivery. How does gold become a physically backed Exchange Traded Fund (ETF)? or

Transcript of ETFS GoldPrimer 022217 B - Aberdeen Standard · 2017-11-10 · Physically backed gold ETFs have a...

Page 1: ETFS GoldPrimer 022217 B - Aberdeen Standard · 2017-11-10 · Physically backed gold ETFs have a number of potential advantages over holding physical gold: Are you getting a fair

Buy physical gold Buy a physically backedgold ETF

Buying Gold

Many online outlets sell gold in the form of coins or bars, and will even deliver it to your home, but there are some important details to consider:

Physically backed gold ETFs have a number of potential advantages over holding physical gold:

Are you getting a fair price? Most online gold retailers make money by selling gold at a premium. �is premium may range as high as 44% above the world spot price.1

Fairly priced. When you buy a physically backed gold ETF, you get the world spot price.

What exactly are you buying? �ere are many factors to keep in mind including the gold’s purity, weight, origin, and the seller’s reputation. Can you verify that you are buying gold of a given purity or weight?

Veri�ed. Physically backed gold ETFs pro-vide access to gold that adheres to rigorous purity, �neness, and quality standards. Bars are stamped with a serial number, the bar’s origin, its �neness to 4 signi�cant digits, its weight in troy ounces, and the re�ner.

How will you keep it safe? Holding physical gold means you will need to secure it with your own safe or vault.

Safe and Secure. Gold is stored in a highly secure vault.

Can you sell it again later? Physical gold is somewhat illiquid—this means that it may be di�cult for individuals to �nd a buyer and convert their gold back into usable currency.

Liquid. Shares of physically backed gold ETFs may be easily bought and sold throughout the trading day, so they can be converted back into cash when needed.

Disclosure

�e ETFS Gold 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 Gold Trust are not subject to the same regulatory requirements as mutual funds. �ese investments are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. �ere are special risks associated with short selling and margin investing.

Commodities and futures generally are volatile and are not suitable for all investors.

�e value of the Shares relates directly to the value of the precious metal held by the Trust and �uctuations in the price could materially adversely a�ect investment in the Shares. Several factors may a�ect the price of precious metals, including: (1) A change in economic conditions, such as a recession, can adversely a�ect the price of the precious metal held by the Trust Some metals 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; (2) Investors’ expectations with respect to the rate of in�ation; (3) Currency exchange rates; (4) Interest rates; (5) Investment and trading activities of hedge funds and commodity funds; and (6) Global or regional political, economic or �nancial events and situations. Should there be an increase in the level of hedge activity of the precious metal held by the trust or producing companies, it could cause a decline in world precious metal prices, adversely a�ecting the price of the Shares.

Also, should the speculative community take a negative view towards gold, it could cause a decline in world gold price, negatively impacting the price of the Shares.

�ere is risk that part or all of the Trusts’ physical gold could be lost, damaged or stolen. Failure by the Custodian or Sub-Custodian to exercise due care in the safekeeping of gold held by the Trust could result in a loss to the Trust. �e 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 su�ered with respect to the Trust’s gold 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.

�e 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.

�is material must be accompanied or preceded by the prospectus. Carefully consider each 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.

ALPS Distributors, Inc. is the marketing agent for ETFS Gold Trust.

ETF0001108 2/18/2018

Gold gets mined, then becomes a bar, gets veri�ed, and is then priced according to market value.

The gold bar then becomes available for sale.

$

1 http://www.24hgold.com/english/gold_market_premium.aspx?ms=1184348D5010 Spot price is the current price in the marketplace at which a given asset such as a security, commodity or currency can be bought or sold for immediate delivery.

How does gold become a physically backed Exchange Traded Fund (ETF)?

or