Precious Metals Monitor --- February 2017 - ETF Securities

Maxwell Gold Director –Investment Strategy

March 3rd, 2017

Precious Metals Monitor --- February 2017 Key Highlights

Deficits, delays and debt discussions could weigh on market optimism The Trump rally continued its march this month with the S&P 500 rising 4.0% (see Table 1) and indices hitting record levels. Investors remain fueled by expectations for tax reform, deregulation, and increased fiscal spending (most notably a $1 trillion dollar infrastructure plan). Given the complexities of bringing such policies to fruition, however, markets may be under-pricing the impact that delays and compromises may have on current valuations. Additionally, with the return of the US debt ceiling debate in March and further interest rate hikes expected by the Federal Reserve (Fed), US fiscal stimulus plans may hit some headwinds. With the US national debt nearing $20 trillion and US debt to gross domestic product (GDP) currently at 105% many fiscal conservatives in Congress may be unwilling to reduce tax revenue and increase deficit spending. Further the cost of servicing this debt would increase in a rising interest rate environment (markets are currently pricing a 90% probability of a Fed rate hike in its March 15th meeting). Extending the national debt and increasing the deficit could deteriorate the US fiscal budget and health longer term, particularly if these stimulus plans lack a trickle down economic impact. If investors begin to anticipate fiscal policies delays current market enthusiasm could wane, leading to a potential rise in volatility.

Is Platinum’s recent rally enough to recapture investor interest? Platinum has risen 13.4% through February after failing to match the strong returns of its precious metals peers last year. Despite this recent rally, retail investors have broadly been on the side lines as global exchange traded funds (ETFs) platinum holdings are flat since the start of 2016. This lack of interest from retail investors is a reflection of the broader platinum market. Several strategic headwinds exist for the platinum market including a declining global market share for diesel engine vehicles, slowing Chinese jewelry consumption, and undisciplined mine production in South Africa. Many factors, however, are supportive of platinum’s investment outlook including a 40year-low discount to the gold price, estimates for supply and demand to be broadly balanced in 2017, and exploration into new applications including hydrogen fuel cells. These offsetting fundamentals bring investor flows into focus as the marginal driver of platinum price and demand. A large part of platinum’s recent rally has been driven by short covering in the futures market. Over the last 4 months, short positions by money managers have fallen 85% (from about 23,000 contracts to 3,500 contracts), while long positions by money managers are little changed. The rally in platinum may continue to follow demand for commodities and defensive assets in the short term. In order for this rally to continue longer term, however, a rise in investment will remain key– particularly against tightly balanced market fundamentals.

Table 1: Performance Returns (as of February 28th, 2017) Precious metals Gold ($/ounce) Silver ($/ounce) Platinum ($/ounce) Palladium ($/ounce) Key Market Indices ETFS Precious Metals Basket Index Bloomberg Commodity Index S&P 500 Index

Spot Price

February

QTD

YTD

1 Year

3 Year

5 Year

1,248.3

3.1%

8.3%

8.3%

0.8%

-2.0%

-6.2%

18.3

4.3%

15.1%

15.1%

22.9%

-4.8%

-12.4%

1,024.3

2.9%

13.4%

13.4%

9.6%

-10.9%

-9.6%

770.9

2.2%

13.2%

13.2%

55.9%

1.2%

1.5%

Index Level

February

QTD

YTD

1 Year

3 Year

5 Year

3,442.7

6.1%

11.9%

11.9%

11.4%

-3.2%

-7.8%

87.7

0.2%

0.3%

0.3%

16.0%

-13.0%

-9.9%

2,363.6

4.0%

5.9%

5.9%

25.0%

10.6%

13.9%

MSCI Emerging Market (EM) Index

936.4

3.1%

8.7%

8.7%

29.5%

1.4%

-0.3%

Barclays US Aggregate Bond Index

1,993.56

0.7%

0.9%

0.9%

1.4%

2.6%

2.3%

101.1

1.6%

-1.1%

-1.1%

3.0%

8.3%

5.1%

Euro/US Dollar (EUR)

1.06

-2.1%

0.6%

0.6%

-2.7%

-8.5%

-4.5%

US Dollar/Japanese Yen (JPY)

112.8

0.0%

-3.6%

-3.6%

0.1%

3.5%

6.8%

US Dollar Index (USD)

HFRX Global Hedge Fund Index 1,223.5 1.2% 1.7% 1.7% 7.5% -0.5% 1.3% *See disclosures for further definitions and details. Yearly returns are annualized. QTD = quarter to date, YTD = year to date. ETF = exchange traded fund.

For month ending February 28th, 2017. Past performance is no guarantee of future results.

1

Gold: +3.1% (February), +8.3% (QTD), +8.3% (YTD) Gold price, daily moving average (dma), and volume

$80,000

$1,200

$60,000

$1,150

$40,000

$1,100 $20,000

$1,050 Jan-17

Feb-17

Dec-16

Nov-16

Oct-16

Sep-16

Aug-16

Jul-16

Apr-16

Jun-16

$-

May-16

$1,000

Source: Bloom berg, ETF Securities. Chart data from 02/29/16 to 02/28/17.

Global known ETF holdings of gold Cumulative gold stock in ETFs (lhs)

300

2,000

200 1,500

100 -

1,000

(100)

500

(200) (300) 2016

2015

2014

2013

2017

-

2012

Futures: Investor sentiment in gold rose in February as net managed money positioning increased 12% to 78,042 contracts as investors reduced gold short positions 9% to 64,597 contracts while long positioning remained broadly unchanged.

400

2011

Inventories: COMEX gold inventory holdings slowed net reductions from 5.4t in January to 1.4t in February driven primarily by liquidations in eligible inventories.

Monthly gold net flows in ETFs (rhs) 500

2,500

2010

ETFs: In February, global physical gold ETFs saw 64.1 metric tonnes (t) in net inflows on the month for the first time since October 2016. This month lifts cumulative gold ETF holdings up 3.6% to 1,831t and +11% over the last year.

2008



$100,000

$1,250

Metric tonnes of gold (both axes)



200 dma (lhs) $120,000

$1,300

Flows 

50 dma (lhs)

$1,350

Mar-16

In a bearish scenario, the Fed may move more aggressively, seeing the USD appreciate and bursting the bond market bubble and pushing gold near the $1100/oz level.

Gold Price (lhs)

2009



In a bullish scenario, the Fed would be slow to hike rates while inflation rises well above expectations as the USD weakened pushing gold to $1350-1400/oz at year end.

Volume (rhs) $1,400

Feb-16



Gold rose 3.1% in February to $1248.3/ounce (oz). In our 2017 base case outlook, gold may rise to $1300/oz in the first half of the year, aided by a weaker US Dollar (USD) and low real rate environment. However, USD strengthening in the second half of the year and subdued investor interest may drive a sell-off, with gold ending the year in the $1220-1240/oz range.

Fr ont Month Futures Price



Fu tures Trading Volume ($mn)

Investment Outlook


US Dollar will remain near term driver of gold prices

$1,350

$1,200

$1,150 $1,100

Pr ice ($/ounce)

$1,300 $1,250

$1,050

Feb-17

Jan-17

Dec-16

Oct-16

Sep-16

Aug-16

Jul-16

May-16

Jun-16

$1,000

Apr-16

USD: The dollar rose 1.6% in February, recovering some of the lost ground in January, as the market shifted focus back to the Fed as hawkish rhetoric and robust economic data remain supportive of continued interest rate tightening this year.

$1,400

Mar-16



Rates: Volatility in market rates saw the US 10yr Treasury yield hit a 4 month low of 2.31% before ending February at 2.39% vs 2.45% the month prior, with real rates remaining range bound.

US Dollar (lhs)

110 108 106 104 102 100 98 96 94 92 90

Feb-16



Gold Price (rhs)

Inflation: US headline consumer price index (CPI) rose to 2.5% in January driven by rising energy prices while input costs pressures continued to build with core CPI rose to 2.3%. US Dollar Index



Nov-16

Factors


Gold demand by sector (excluding ETFs and similar)

Fundamentals



Physical Investment

Physical demand: Indian physical demand stabilized in January as gold imports eked a slight gain following December’s severe drop driven by India’s demonization policy. Chinese gold imports and local premiums continue to rise; however, February saw weakest US Mint sales for bullion coins in 14 months as higher gold prices curtailed retail demand. Supply: The world’s largest gold mine, Grasberg in Indonesia, may see gold supply reductions due to new government regulations aimed at limiting the export of unrefined metals. According to Metals Focus, they expect such disruptions to significantly weigh on global supply with a potential drop in mine production for the first time in a decade.

Official Sector

Industrial

Jewelry

100% 90%

23.2%

24.1 %

27 .6%

30.6%

31 .1%

70%

1 3.0%

1 3.3%

60%

7 .8%

7 .7 %

1 0.3% 8.7 %

9.7 % 9.0%

9.4% 8.9%

55.4%

55.5%

55.0%

54.8%

54.3%

2014

2015

2016F

2017F

2018F

80%

Gold Demand



50% 40% 30% 20% 10% 0%

Source: Metals Focus, ETF Securities. Chart data as of 02 /10/17


2

Silver: +4.3% (February), +15.1 % (QTD), +15.1% (YTD) Silver price, daily moving average (dma), and volume 200 dma (lhs)

$-

Jan-17

$2,000

$12

Feb-17

$4,000

$13

Dec-16

$6,000

$14

Nov-16

$8,000

$15

Oct-16

$10,000

$16

Sep-16

$12,000

$17

Aug-16

$14,000

$18

Jul-16

$16,000

$19

May-16

$18,000

$20


50 dma (lhs)

$20,000

Apr-16

Slowing mine production due to reduced capital expenditures may continue to be a tailwind for silver. As mining capital expenditure and investment continues to decline this should further weigh on silver supply which has been in a supply deficit for the past 11 years.

Silver Price (lhs)

$21

Mar-16



In our 2017 base case, we see silver likely trading in the $2022/oz range driven by higher inflation, a weakening US dollar (in first half of year) and improving manufacturing growth.

Volume (rhs) $22

Feb-16



Silver continued its year to date trend higher in February as it rose 4.3% to $18.3/oz with daily volume in silver front month contracts averaging $8.5 billion for the month.




Jun-16

Investment Outlook


Speculative positioning in silver futures by investors

1,500 1,000

15,000

500 10,000

(500)

5,000

(1,000)

2017

2016

2014

2012

2015

(1,500) 2011

2010

Futures: Positive investor sentiment towards silver extended this month with net managed money positioning in silver futures rose 21% to 77,432 contracts. This was driven by a 17% increase in long positions and 4% reduction in shorts.

2,000

2009



Inventories: COMEX silver inventory holdings rose by 180t in February driven by eligible stocks. Shanghai Future Exchange silver stocks increased 109t in February to a record 2103t.

Monthly silver net flows in ETFs (rhs) 2,500

20,000

2008



ETFs: Global physically backed silver ETFs snapped 3 months of redemptions as February saw net inflows of 33.7 metric tonnes (t). Cumulative silver holdings rose 0.2% to 20,146t this month and up 8% over the past 12 months.

Metric tonnes of silv er (both axes)



Cumulative silver stock in ETFs (lhs) 25,000

2013

Flows


Historic gold/silver price ratio

Factors





Gold price: Silver continued to gain traction relative to gold in 2017 as shown by the drop of the gold/silver ratio to 68.2 in February as it moves towards the long term average of 59. Industrial Cycle: US industrial activity rose again in February to 57.7 up from 56.2 in January (as measured by the manufacturing PMI index) - an encouraging sign of increasing demand for industrial materials such as silver.

90 80

Gold/Silver Ratio



100

70 60

50 40

Producer Prices: Rising input and labor costs continue to spur inflationary pressures as seen in the rise in the US producer price index (PPI) to 3.0% in January from 1.9% for finished goods and holding at 1.6% on a final demand basis.

Average = 59

30 20

1975

1980

1985

1990

1995

2000

2005

2010

2015


Silver demand by sector (excluding ETFs and similar)

Fundamentals



Solar panel demand: Silver demand for solar panels is a growing segment of its industrial demand with record levels expected in 2018. Economies of scale and falling costs may make economics a key driver beyond policy for the growing US solar market which saw solar capacity rise 95% in 2016. International solar usage may spur growth amid climate controls and growing energy needs in India and China. Supply: According to Metals Focus, supply from mine production fell 0.5% in 2016 after over 10 years of increased output. They estimate silver mine supply will continue to fall in 2017 by 1.7% due to cuts in by product output from gold and base metal mining operations.

Physical Investment

Jewelry & Silverware

Photography

Industrial

100% 90% 80%

Silver Demand



27 .7%

29.1 %

23.4%

23.8%

4.2%

3.9%

44.6%

43.6%

2014

2015

70% 60% 50% 40%

30% 20%

21 .9%

21 .6%

21 .5%

24.4%

24.5%

24.6%

4.0%

3.8%

3.5%

49.5%

48.9%

48.4%

2016F

2017F

2018F

10% 0%


For month ending February 28th, 2017. Past performance is no guarantee of future results

3

Platinum: +2.9% (February), +13.4% (QTD), +13.4% (YTD) Platinum price, daily moving average (dma), and volume Platinum Price (lhs)

50 dma (lhs)

200 dma (lhs) $2,500

$1,150 $2,000

$1,100 $1,050

$1,500

$1,000 $1,000

$950 $900

$500

$850

An expected balanced market with slight deficits in 2017 may support prices, but remain tied to demand from key markets for diesel engines and jewelry globally.

Jan-17

Feb-17

Dec-16

Oct-16

Nov-16

Sep-16

Aug-16

Jul-16

Apr-16

Jun-16

$May-16

$800 Mar-16



Platinum’s discount relative to gold extended in February to 18% or $224 per ounce. Platinum, which historically averaged a $132 premium to gold, continues its longest lasting discount to gold for only the 4th time since 1976.

Volume (rhs) $1,200

Feb-16



Platinum continued its upward momentum in February, rising 2.9% to $1024.3/ounce with average daily volume in platinum front month contracts averaging $765 million.





Investment Outlook


Global known ETF holdings of platinum

12 10

70

8 6

60

4

50

2

40

-

(6)

-

(8) 2017

2016

1350 0.08

1250 1150

0.07

1050 950

0.06

Pla tinum price ($/ounce)

1450

Jan-17

Oct-16

Jul-16

Apr-16

Jan-16

Oct-15

Jul-15

Apr-15

750 Jan-15

0.05

Source: Bloom berg, ETF Securities. Chart data from 12/31/13 to 02/28/17

Platinum demand by sector (excluding ETFs and similar) Physical Investment

Demand: Continued rise in industrial activity should be a further boost for platinum’s broader industrial applications. Global auto demand for platinum remains robust and is forecast to drop 1% in 2017 despite current market headwinds according to the World Platinum Investment Council, while industrial demand is expected to rise 2%. Supply: According to Metals Focus, platinum mine production is expected to be down 1.4% in 2016, while recycling supply is expected to see an increase in 2016 driven by autocatalyst scrap. Turning to 2017, they expect a 3% drop in mine supply driven by lower output in South Africa.

100% 90% 80%

Pla tinum Demand



1550

850

Chinese Consumer: Consumer retail sales in China rose 0.1% to 10.9% in December year over year as further signs of stabilization in China’s economy may bring back support for consumer spending and discretionary purchases.

Fundamentals 

0.09

Oct-14

Euro Auto Sales: January Western European light vehicle sales rose slightly by 0.7% from December (up 10% year over year), while total European vehicles sales fell 12% in January.

1650

South African Rand (lhs) Platinum (rhs)

Jul-14

South African Rand: 2016 was a turnaround for the South African Rand (ZAR) strengthening 12.6%. It continued this rebound, rising 2.7% in February, and 4.7% YTD which has been a boon for platinum and its rising correlation to ZAR.

Jan-14



2013

South African Rand (ZAR) and platinum price 0.10

Ra nd/US Dollar (ZAR/USD)



2011


Factors 

2015

10

2012

(2) (4)

2010

30 20

2009

Futures: Investor sentiment remained positive with net speculative positioning in platinum futures increasing 2% to 25,726 contracts in February. This was driven primarily by a 28% drop in short positions with a 3% drop in long positions.

90

Apr-14



Inventories: NYMEX platinum inventories in January saw slight drawdowns of 890 ounces or approximately 0.4% across both eligible and registered inventories.

Monthly platinum net flows in ETFs (rhs) 14

80

2008



ETFs: Global physically backed platinum ETFs continued net inflows in February of 0.52 metric tonnes (t) and 1.0t in 2017. Cumulative platinum holdings ended the month with 74.4t, up 0.7% from January and 3% over the last 12 months.

Metric tonnes of platinum (both axes)



Cumulative platinum stock in ETFs (lhs) 100

2014

Flows

Industrial

Jewelry

1 .7 %

Autocatalyst

3.1 %

2.3%

21 .8%

21 .8%

32.6%

33.8%

8.9%

6.1 %

20.8%

23.0%

33.2%

30.1 %

28.9%

41 .6%

40.2%

41 .1 %

42.4%

41 .8%

2014

2015

2016F

2017F

2018F

23.4%

70% 60% 50% 40% 30%

20% 10% 0%



4

Palladium: +2.2% (February), +13.2% (QTD), +13.2% (YTD) Palladium price, daily moving average (dma), and volume 50 dma (lhs)

200 dma (lhs) $1,400 $1,200

$700

$1,000

$650

$800

$600 $600

$550

$400

$500

Feb-17

Oct-16

Nov-16

Aug-16

Jul-16

May-16

Jan-17

$-

Dec-16

$400

Sep-16

$200

Jun-16

$450

Apr-16

Given palladium’s demand is most sensitive to the industrial production cycle, palladium may see further support along with industrial metals in anticipation of a rise in US infrastructure spending and recovery in global growth.

Palladium Price (lhs)

$750

Mar-16



Daily volume in palladium front month contracts averaged $428 million in February, well above the $319 million the month prior.

Volume (rhs) $800

Feb-16



Palladium rose for the 3rd consecutive month in February by 2.2% to $770.9/oz. Palladium’s technicals remain the most attractive amongst the precious metals with its 50 day moving average persistently above the 200 day average.





Investment Outlook


Palladium price and exchange inventories



-

40

(5) 20

(10) 2017

2016

2015

2012

2010

2013

(15)

2011

-

Index level

Feb-17

80 Jan-17

85

$400 Dec-16

90

$450 Oct-16

95

$500

Nov-16

100

$550

Sep-16

105

$600

Aug-16

110

$650

Jul-16

115

$700

Jun-16

120

$750

May-16

125

$800

Apr-16

Industrial Metals: Palladium’s correlation to industrial metals (0.57) is the highest among precious metals and the recent rally in industrial metals, which are up 26% year over year, has benefitted palladium demand and performance.

Bloomberg Industrial Metals Index (rhs)

$850

Mar-16

Market Balance: Expected continued supply deficits, growing demand, and drawdowns in above ground stocks have kept the market balance for palladium favorable.

Price (US$/ounce)

Palladium (lhs)

Global Auto Sales: Chinese passenger vehicle sales fell 17% in January from the month prior to 2.2 million. In the US, total auto sales rose 16.5% in February from last month to 1.33 million versus 1.13 million in January.

Source: Bloom berg, ETF Securities. Chart data from 12/31/13 to 02/28/17

Palladium demand by sector (excluding ETFs and similar)

Fundamentals 

5

Jan-16



60

Palladium is behaving more in line with industrial metals

Jewelry

Demand: Palladium has benefited in 2016 from continued demand from strong Chinese auto sales as well as gains from negative sentiment towards diesel engine vehicles in Europe. According to Metals Focus global demand for palladium may increase 17% by 2020 from last year’s levels. Supply: Global palladium supply deficits have persisted since 2012 making palladium’s fundamentals very supportive for prices. Deficits are expected to persist for 2017 and beyond with forecasts from Johnson Matthey of a 651,000 ounce deficit in 2016 which should add further support to palladium.

100% 90% 80%

Pa lladium Demand



10


Factors 

15

80

2009

Futures: Net speculative positioning in palladium futures rose in February by 8% to 17,246 contracts, the highest level in two years. Long positions rose by 5% while short positions fell by 18% helping spur price volatility this month.

20

Feb-16



Inventories: NYMEX palladium inventories saw 2,262 ounces withdrawn in February (down 3.6% since last month) with total holdings of 60,337 ounces.

Monthly palladium net flows in ETFs (rhs) 25

100

2008



ETFs: Global physically backed palladium ETFs posted net inflows in February of 0.3 metric tonnes (t) ending a 7 month rout of outflows. Cumulative palladium holdings totalled 47.6t which is down 30% in the last 12 months.

Metric tonnes of palladium (both axes)



Cumulative palladium stock in ETFs (lhs)

2014

Flows

Industrial

Autocatalyst

Physical Investment

3.9%

2.9%

2.4%

2.5%

2.5%

21 .3%

21 .1%

20.9%

20.5%

20.1 %

7 4.3%

7 5.7%

7 7 .4%

7 7 .9%

7 7 .8%

0.1 %

0.1 %

0.2%

0.1 %

2015

2016F

2017F

2018F

70% 60% 50% 40% 30%

20% 10% 0%

0.4% 2014



5

Important Risks The statements and opinions expressed are those of the author and are as of the date of this report. All information is historical and not indicative of future results and subject to change. Reader should not assume that an investment in any securities and/or precious metals mentioned was or would be profitable in the future. This information is not a recommendation to buy or sell. Past performance does not guarantee future results. The ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust, ETFS Palladium Trust and ETFS Precious Metals Basket 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. Trusts focusing on a single commodity generally experience greater volatility. Commodities generally are volatile and are not suitable for all investors. Trusts focusing on a single commodity generally experience greater volatility. Please refer to the prospectus for complete information regarding all risks associated with the Trusts. Shares in the Trusts are not FDIC insured and may lose value and have no bank guarantee. The 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:      

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; 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 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. Should there be an increase in the level of hedge activity of the precious metal held by the Trusts 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 the precious metal held by the Trusts, it could cause a decline in prices, negatively impacting the price of the shares. There is a risk that part or all of the Trusts’ physical precious metal 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 Trusts could result in a loss to the Trusts. The Trusts will not insure its precious metals and shareholders cannot be assured that the custodian will maintain adequate insurance or any insurance with respect to the precious metals held by the custodian on behalf of the Trust. Consequently, a loss may be suffered with respect to the Trust’s precious metal that is not covered by insurance. Commodities generally are volatile and are not suitable for all investors. Please refer to the prospectus for complete information regarding all risks associated with the Trust. Investors buy and sell shares on a secondary market (i.e., not directly from Trusts). Only market makers or “authorized participants” may trade directly with the Trusts, typically in blocks of 50k to 100k shares. Commodity definitions: ETFS Physical Precious Metals Basket Index reflects the daily performance of a basket with the following components and ratios: gold (0.030oz), silver (1.100oz), platinum (0.004oz) and palladium (0.006oz). Bloomberg Commodity Index (BCOM) is a broadly diversified commodity price index. Futures contract = agreement traded on an organized exchange to buy or sell assets at a fixed price but to be delivered and paid for later. Long position = buying of an asset with the expectation the asset will rise in value. Short position = sale of a borrowed asset with the expectation that the asset will fall in value. Spot price = current market price at which an asset is bought or sold for immediate payment and delivery. Index definitions: S&P 500 Index is a capitalization-weighted index of 500 stocks selected by the Standard & Poor’s Index Committee designed to represent the performance of the leading industries in the U.S. economy. MSCI Emerging Markets (EM) Index is an equity index that captures large and midcap representation across Emerging Markets countries. Barclays US Aggregate Bond Index is a broad-based flagship benchmark measuring investment grade, US dollar, fixed-rate taxable bond market. The US Dollar Index (DXY) is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of US trade partners' currencies. The Euro/US Dollar exchange rate is the relative pricing of the euro (the official currency of the European Union) and the US dollar. The US Dollar/Japanese Yen exchange rate is the relative pricing of the yen (the official currency of Japan) and the US dollar. The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. Year over year = the percent change over a full calendar year. The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services; headline includes all categories while core excludes food and energy. South African Rand (ZAR) = official currency of South Africa. The Purchasing Manufacturing PMI Index (PMI) is an indicator of the economic health of the manufacturing sector. Producer Price index (PPI) measures the average change in selling prices received by domestic producers of goods and services. Gross Domestic Product (GDP) is the total value of goods produced and services provided in a country during one year. Entity definitions: The Federal Reserve (Fed) is the central banking system of the United States of America. COMEX = the primary market for trading metals such as gold, silver, copper and aluminium. NYMEX = New York Mercantile Exchange.

Commodities generally are volatile and are not suitable for all investors. This 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 click here to view the prospectus. ALPS Distributors, Inc. is the marketing agent for ETFS Silver Trust, ETFS Gold Trust, ETFS Platinum Trust, ETFS Palladium Trust and ETFS Precious Metals Basket Trust. Maxwell Gold is a registered representative of ALPS Distributors, Inc. ETF001123 02/28/18

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