ETF Securities Launches World's First Physically-Backed Industrial Metal ETCs

ETF Securities Limited has today launched the world's first physically-backed industrial metal Exchange Traded Commodities (ETCs).  These new products will, for the first time, give investors access to industrial metals in an easy, secure and transparent way via a security traded on the London Stock Exchange.  A total of six individual metals are being offered under the Prospectus together with a basket comprising all the metals.  

The first securities to be available for trading will be ETFS Physical Copper, ETFS Physical Nickel, and ETFS Physical Tin.  Trading in these securities is expected to commence on Friday 10th December.  The remaining securities, being ETFS Physical Aluminium, ETFS Physical Lead and ETFS Physical Zinc and ETFS Physical IM Basket, will be available for trading in the new year.

The Industrial Metal ETCs have been designed to "bolt on" to the pricing, delivery and rules of the London Metal Exchange (LME) - the world's most respected exchange for the trading of industrial metals.  The Issuer, ETFS Industrial Metal Securities Limited, will effect all creations and redemptions through a special purpose LME account and will be subject to the LME rules and regulations, including lending guidance.  Market makers will be able to effect creations and redemptions against delivery of LME physical metal, evidenced by LME Warrants .  This will ensure the transparency of all trading in the underling physical metal.  The Issuer will initially hold metal as LME Warrants but may move some (but not all) metal off-warrant as assets build up in order to stay within lending guidance and to reduce storage fees.  At all times, all metal will be stored in warehouses which are approved and audited by the LME.  The costs of holding the Industrial Metal ETCs will comprise a management fee as well as storage and insurance fees.  Storage fees will be capped at the warehouse fees published annually by the LME but may be reduced over time if the Issuer is able to negotiate lower fees once assets build up.

Deutsche Bank AG, London Branch will act as the metal agent, providing trading, administration and custody services related to the products and the underlying metals.

Commenting, Graham Tuckwell, Chairman of ETF Securities Limited, said:

"These new products represent an important milestone in the industrial metals market, as they give investors, for the first time, direct access to the physical metals market. We believe these products have been eagerly anticipated by the market and we are pleased to be the firm to provide this breakthrough for investors.  We were able to make a similar breakthrough in the precious metals market 7 years ago when, in 2003, we pioneered the concept of gold ETCs, which globally have US$97 billion in assets. Investors are increasingly looking at hard assets as a way to hedge against growing concerns about sovereign risk, currency debasement and potential inflation. They are also looking at ways to tap into the rapidly rising commodity demand by China and other emerging market economies.  These new products are expected to be of interest to such investors, especially those who much prefer to have their securities backed by physical metal."

The Prospectus for ETFS Industrial Metal Securities Limited has been approved by the UK Listing Authority and may be viewed by clicking here.  In addition:

• To view the industrial metal ETC FAQs, please click h ere
• To view ETFS Physical Copper factsheet, please click here
• To view ETFS Physical Nickel factsheet, please click here
• To view ETFS Physical Tin factsheet, please click here