ETF Securities USA LLC (ETFS) announced today that volume of shares traded in the ETFS Silver Trust (SIVR) exceeded a record for week of May 2nd, 2011. Shares reached a record 5.25 million traded on May 5th, 2011 with value of $740 million traded for the whole week. Average daily volume in SIVR increased 18.5 times from $8m to $148m on the back of high volatility in the silver market.
SIVR began trading on the NYSE ARCA on July 24th, 2009 and has since firmly established itself in the physically backed product landscape offering exposure to silver at the lowest management fees (30bps) of any physically backed silver ETF in the US market.
The highlights of SIVR are:
Physically-backed: SIVR shares represent interest in physical silver bullion held in a London Bullion Market Association (LBMA)2 approved secured vault
Expense Ratio: SIVR has a current expense ratio of 0.30% per annum
Competitively Priced: Currently, the ETFS Silver Trust expense ratio is the lowest priced physically-backed silver product in the US ETP market
Silver Bars Audited: All silver bar numbers published daily to: www.etfsecurities.com
Commenting on the record week for SIVR, William Rhind, Head of Sales & Marketing for ETFS Marketing LLC, commented:
“The week of May 2nd was a ground breaking week for SIVR with product records set for both volume of shares traded and value. The transparent3 and liquid4 nature of the product provided investors who were sellers or buyers that week with the ability to access liquidity in an orderly and efficient manner, against a highly volatile market backdrop for silver prices.”
The ETFS Silver 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 Trust are not subject to the same regulatory requirements as mutual funds. This investment is not suitable for all investors. Please read the prospectus carefully before investing.
William Rhind is a registered representative of ALPS Distributors, Inc.
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.
Exchange Traded Funds (ETFs) – refer to exchange traded products that are structured and regulated as mutual funds or collective investment schemes. ETFs are registered under The Investment Company Act of 1940. Currently, ETFs rely on physical delivery of the underlying assets through the creation and redemption process.
Exchange Traded Commodities (ETCs) – trade and settle like ETFs but are structured as debt instruments. They track both broad and single commodity indices. ETCs are either physically and hold the underlying commodity (e.g. physical gold) or get their exposure through fully collateralized swaps.
Exchange Traded Notes (ETNs) – are similar to ETCs except they are not collateralized, which means that an investor in an ETN will be fully exposed to issuer credit risk.
Risks and Important Considerations
The value of the Shares relates directly to the value of silver held by the Trust and fluctuations in the price of silver could materially adversely affect an investment in the Shares. Several factors may affect the price of silver including: A change in economic conditions, such as a recession, can adversely affect the price of silver. Silver is 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 silver prices, negatively impacting the price of the Shares. There is a risk that part or all of the Trust's silver could be lost, damaged or stolen. Failure by the Custodian or Sub-Custodian to exercise due care in the safekeeping of the precious metal held by the Trust could result in a loss to the Trusts. Investments in the trusts do not constitute a direct investment in the underlying metal.
The Trust is new and has limited operating history. 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 silver that the Trust may acquire, the Trust, as it grows, may have an impact on the supply and demand of silver. Please refer to the prospectus for complete information regarding all risks associated with the Trust. Shares in the Trust 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. ETF Securities Ltd. or its affiliates are not affiliated with ALPS Distributors, Inc. Certain marketing services may be provided for the ETFS Silver Trust by ETFS Marketing LLC.
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.
1 One basis point equals 0.01%.
2 LBMA – the London-based trade association that represents the wholesale over-the-counter market for gold and silver in London.
3 A market is considered transparent if current trade and quote information is made readily available to the public.
4 Liquidity refers to an asset’s ability to be sold without causing a significant movement in price and with minimum loss of value.
Stephanie DiIorio, 212-754-5181
Helen Burden, +44 20 7448 4336
All Other US Inquiries:
ETFS Marketing LLC
48 Wall Street, 11th Floor
New York, NY 10005