Precious Metals Monitor --- January 2017 - ETF Securities

Maxwell Gold Director –Investment Strategy

February 3rd, 2017

Precious Metals Monitor --- January 2017 Key Highlights

Policy & Populism: Trump Card or Wild Card for Precious Metals? The start of the year has quickly brought geopolitical and policy volatility into investors’ focus. Changing US trade and immigration policies under the new Trump administration has stirred uncertainty across global financial and currency markets this month. Indices tracking US economic policy uncertainty have been steadily on the rise since last summer’s Brexit vote but have seen a dramatic uptick in January. This trend, however, extends to not only the US but also to Europe. Growing populist sentiment paired with upcoming elections in France, Germany, and the Netherlands and the United Kingdom’s continued move to exiting the European Union have added to the volatility. Looking ahead, this backdrop will likely persist as further changes to US trade agreements, regulation, and fiscal policy are anticipated under the Trump administration. With little clarification or economic scope of such policies, the impact likely will continue to be disruptive to financial markets. Precious metals, which tend to exhibit a positive correlation with market and policy uncertainty, have thus far benefited by increased investor demand in January (see Table 1). Against an environment of policy unpredictability, we see the risk management benefits of precious metals to help dampen volatility and hedge against tail risk within portfolios. Additionally, some policies may be inherently inflationary and a shift from monetary to fiscal stimulus may be a boon for those industrial-precious metals.

Rising Manufacturing Activity May Continue to Support the Industrial-Precious Metals As global growth is anticipated to remain robust in 2017, measures of global manufacturing and shipping may continue to rise. Recent manufacturing Purchasing Managers' Index (PMI) levels have risen throughout 2016 indicating an increase of industrial activity and production. Further the Baltic Dry Index, a measure of global shipping of raw materials, has seen a similar recovery in recent months. This may point to further support of industrial-related commodities as global demand for raw materials and inputs persists against higher industrial and economic activity. Unlike gold, the majority of annual demand in silver (~50%), platinum (~65%), and palladium (~95%) is tied to industrial applications. These industrial-precious metals have moved in line with the broader industrial metal complex in recent months. Growing industrial applications including electronics, solar panels, and auto manufacturing (with news of Volkswagen debuting its “climate windscreen” which incorporates silver) against increased global manufacturing and industrial activity may continue to be a tailwind for these industrially sensitive precious metals.

Table 1: Performance Returns (as of January 31st, 2017) Precious metals

Spot Price

January

QTD

YTD

1 Year

3 Year

5 Year

Gold ($/ounce)

1,210.7

5.1%

5.1%

5.1%

7.3%

-0.9%

-7.2%

Silver ($/ounce)

17.6

10.3%

10.3%

10.3%

22.3%

-2.9%

-12.5%

995.0

10.1%

10.1%

10.1%

14.3%

-10.3%

-9.4%

Platinum ($/ounce) Palladium ($/ounce) Key Market Indices ETFS Precious Metals Basket Index Bloomberg Commodity Index S&P 500 Index

754.3

10.8%

10.8%

10.8%

49.5%

2.3%

1.3%

Index Level

January

QTD

YTD

1 Year

3 Year

5 Year

3,244.8

5.4%

5.4%

5.4%

12.2%

-2.8%

-8.9%

87.6

0.1%

0.1%

0.1%

15.7%

-11.3%

-9.4%

2,278.9

1.9%

1.9%

1.9%

20.1%

10.8%

13.9%

MSCI Emerging Market (EM) Index

909.2

5.5%

5.5%

5.5%

25.3%

1.4%

-0.3%

Barclays US Aggregate Bond Index

1,980.25

0.2%

0.2%

0.2%

1.7%

2.6%

2.1%

US Dollar Index (USD)

99.5

-2.6%

-2.6%

-2.6%

0.5%

7.0%

4.7%

Euro/US Dollar (EUR)

1.08

2.7%

2.7%

2.7%

-0.8%

-7.1%

-3.9%

US Dollar/Japanese Yen (JPY)

112.8

-3.6%

-3.6%

-3.6%

-6.8%

3.4%

8.2%

HFRX Global Hedge Fund Index 1,211.4 0.7% 0.7% 0.7% 6.1% -0.3% 1.4% *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 January 31st, 2017. Past performance is no guarantee of future results.

1

Gold: +5.1% (January), +5.1% (QTD), +5.1% (YTD) Gold price, daily moving average (dma), and volume

$80,000

$1,250

$1,200

$60,000

$1,150

$40,000

$1,100 $20,000

Jan-17

Dec-16

Nov-16

Oct-16

Sep-16

Aug-16

Jul-16

Jun-16

Apr-16

May-16

Mar-16

$-

Source: Bloom berg, ETF Securities. Chart data from 02/01/16 to 01/31/17.

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

300

2,000

200 1,500

100 -

1,000

(100)

500

(200) 2017

2015

2014

2016

(300) 2013

-

2012

Futures: Investor sentiment in gold rose in January as net speculative positioning increased 38% to 59,754 contracts as investors reduced gold short positions to 75,405 contracts while extending long positioning slightly by 3%.

400

2011

Inventories: COMEX gold inventory holdings followed suit with net reductions of 5.4t in January driven by registered inventories for delivery.

Monthly gold net flows in ETFs (rhs) 500

2,500

2010

ETFs: In January, global physical gold ETFs saw 8.8 metric tonnes (t) in net outflows at a slowing pace compared to the 202t redeemed last quarter. This month brings cumulative gold ETF holdings down 0.5% to 1,768t and +21% in the last year.

2008



$100,000

$1,300

$1,050

Metric tonnes of gold (both axes)



200 dma (lhs) $120,000

$1,000

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

50 dma (lhs)

$1,350

Flows 

Gold Price (lhs)

2009



In a bullish scenario, the Federal Reserve (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 5.1% in January to $1210.7/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 $1,400

108

$1,350

106

USD: The dollar fell 2.6% in January as investors juggled policy volatility from the incoming Trump administration, likelihood of Fed actions matching statements, rising inflation, and lower than expected gross domestic product (GDP) of 1.9% for 2016.

$1,300

104

102

$1,250

100

$1,200

98

$1,150

96

$1,100

94

2017

2016

2016

2016

2016

2016

2016

2016

$1,000

2016

90

2016

92

$1,050

2016



Rates: Real interest rates dipped in January against rising inflation and broadly flat US rates as the US 10yr Treasury yield closed out the month where it began at 2.45%.

US Dollar (lhs)

110

2016



Gold Price (rhs)

Inflation: US headline consumer price index (CPI) rose to 2.1% in December as base effects of low energy prices continued to roll off while core CPI rose slightly (0.1%) to 2.2%. US Dollar Index



Pr ice ($/ounce)

Factors


Gold demand by sector (excluding ETFs and similar)

Fundamentals



Physical Investment

Indian demand: Gold jewelry and retail investment demand in India pulled back as witnessed by the drop in Indian gold imports in December. Going forward demand from this key physical market is expected to come under pressure as the impact from the removal of high denomination currency bills. Supply: Mine production is expected to see a slight increase of 0.3% in 2016 according to Metals Focus while beginning a period of peak output in 2017 as miners continue to cut capital expenditures and mine developments. Recycling saw a rise among emerging markets in response to higher gold prices.

Official Sector

Industrial

Jewelry

100% 90% 80%

Gold Demand



23.8%

23.8%

25.4%

26.6%

1 3.0%

1 3.1%

1 1 .6%

7 .8%

7 .7 %

8.6%

9.7 % 8.9%

50.2%

55.4%

55.5%

54.4%

54.8%

2013

2014

2015

2016F

2017F

30.9%

70% 60% 50%

1 1 .9% 6.5%

40% 30% 20% 10% 0%

Source: Metals Focus, ETF Securities. Chart data as of 1 2/01/16


2

Silver: +10.3% (January), +10.3% (QTD), +10.3% (YTD) Silver price, daily moving average (dma), and volume 50 dma (lhs)

200 dma (lhs) $20,000 $18,000

$20

$16,000

$19

$14,000

$18

$12,000

$17

$10,000

$16

$8,000

$15

$6,000

$14

$4,000

Jan-17

Dec-16

Oct-16

Nov-16

Sep-16

Aug-16

Jul-16

$-

Jun-16

$2,000

$12 May-16

$13

Apr-16

While silver has a correlation of 0.8 to gold historically, the majority of demand is tied to industrial applications. Against the backdrop of a global economic recovery combined with slowing mine production due to reduced capital expenditures may continue to be a tailwind for silver.

Silver Price (lhs)

$21

Feb-16



Daily volume in silver front month contracts averaged $6.0 billion in January well above the $4.4 billion average trading levels witnessed in December 2016.

Volume (rhs) $22

Mar-16



Silver rebounded in January (+10.3%) to $17.6/ounce outperforming gold and matching industrial metal performance which broadly rose 7.4% in January.





Investment Outlook


Speculative positioning in silver futures by investors



500 10,000

(500)

5,000

(1,000) 2017

2016

2014

2011

2015

(1,500) 2012

-

Historic gold/silver price ratio 100

Gold price: Silver gained traction relative to gold in January as shown by the drop of the gold/silver ratio to 69.2, but has room to continue towards the long term average of 59. Industrial Cycle: US industrial activity rose to 56 in January up from 54.7 in December (as measured by the manufacturing PMI index) - an encouraging sign of increasing demand for industrial materials such as silver.

90 80

Gold/Silver Ratio



1,000

15,000


Factors 

1,500

2010

Futures: Investor sentiment towards silver remained positive with net speculative positioning in silver futures increasing from 39,216 to 56,102 contracts in January. This was driven by a 23% increase in long positions and 18% reduction in shorts.

2,000

2009



Inventories: COMEX silver inventory holdings fell by 83t in January along with Shanghai Future Exchange silver stocks which saw increases of 136t in January to 1993t, the highest level on record.

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

20,000

2008



ETFs: Global physically backed silver ETFs saw net outflows of 183 metric tonnes (t) in January with cumulative holdings falling 0.9% to 20,112t. This marks the 3rd consecutive month of redemptions while stock rose by 8% over the past 12 months.

Metric tonnes of silv er (both axes)



Cumulative silver stock in ETFs (lhs) 25,000

2013

Flows

70 60

50 40

Producer Prices: The producer price index (PPI) rose to 1.6% in December up from 1.3% in November and -1.1% at the end of 2015 as rising input and labor costs continue to spur inflationary pressures.

Average = 59

30 20

1975

1980

1985

1990

1995

2000

2005

2010

2015


Silver demand by sector (excluding ETFs and similar)

Fundamentals



Retail Investment: January saw continued retail purchases (albeit at a slower pace than January purchases in prior years) as sales of US Mint American Eagle silver bullion coin ended the month at 5.1 million ounces. The continued rise in silver prices likely weighed on physical demand which typically remains price elastic. Supply: According to Metals Focus, supply from mine production is expected to fall 0.7% in 2016 after over 10 years of increased output. They estimate silver mine supply will continue to fall in 2017 by 0.6% 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



22.1 %

22.1 %

24.6%

25.0%

3.9%

3.7 %

43.2%

47 .9%

49.2%

2015

2016F

2017F

28.0%

27 .7%

29.1 %

21 .4%

23.4%

23.9%

4.3%

4.2%

3.9%

43.5%

44.7 %

2013

2014

70% 60% 50% 40%

30% 20% 10% 0%


For month ending January 31st, 2017. Past performance is no guarantee of future results

3

Platinum: +10.1% (January), +10.1% (QTD), +10.1% (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

Expected continued supply deficits in 2017 should support prices, but remain tied to demand from key markets for diesel engines and jewelry globally.

$500

$-

Jan-17

Nov-16

Oct-16

Sep-16

Aug-16

Jul-16

Jun-16

Apr-16

May-16

$800

Dec-16

$850

Feb-16



Platinum’s discount relative to gold tightened in January to just over $215 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

Mar-16



Platinum quietly jumped 10.1% in January to $995/ounce ending a 5 month rout since reaching a 2016 high of $1183/ounce in August 2016.





Investment Outlook


Global known ETF holdings of platinum 12 10

70

8 6

60

4

50

2

40

-

(6)

-

(8)



2017

2016

1250 1150

0.07

1050 950

0.06

Pla tinum price ($/ounce)

1350 0.08

850

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 01/31/17

Platinum demand by sector (excluding ETFs and similar)

Fundamentals 

1550

1450

Oct-14

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.

0.09

Jul-14

Euro Auto Sales: December European new light vehicle sales rose 5% from last month and up 10% year over year, while total European vehicles sales in December rose 2%.

1650

South African Rand (lhs) Platinum (rhs)

Jan-14

South African Rand: 2016 saw the South African Rand rebound as the currency strengthened 2.6% in December, rising 12.6% for the year. In January the Rand continued its rebound rising 1.9%, a boon to platinum prices.

Ra nd/US Dollar (ZAR/USD)



2013

South African Rand (ZAR) and platinum price 0.10

Physical Investment

Demand: 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 3.5% 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%

0.9% 21 .6%

80%

Pla tinum Demand



2011


Factors 

2015

10

2012

(2) (4)

2010

30 20

2009

Futures: Investor sentiment improved with net speculative positioning in platinum futures increasing from 9,188 to 22,688 contracts in January. This was driven primarily by a 57% drop in short positions with a 24% increase in longs.

90

2008



Inventories: NYMEX platinum inventories in January saw drawdowns of 7,640 ounces or approximately 3.2% driven primarily by eligible inventories.

Monthly platinum net flows in ETFs (rhs) 14

80

Apr-14



ETFs: Global physically backed platinum ETFs saw net inflows in January of 0.51 metric tonnes (t) reversing outflows last month. Cumulative platinum holdings ended the month with 73.9t (up 0.7%).

Metric tonnes of platinum (both axes)



Cumulative platinum stock in ETFs (lhs) 100

2014

Flows

Industrial

Jewelry

23.4%

Autocatalyst

3.1 %

1 .7 % 8.9%

6.1 %

20.8%

22.9%

21 .7 %

70% 60%

35.6%

33.2%

30.1 %

29.7 %

32.6%

41 .9%

41 .7 %

40.3%

41 .3%

42.6%

2013

2014

2015

2016F

2017F

50% 40%

30% 20% 10% 0%



4

Palladium: +10.8% (January), +10.8% (QTD), +10.8% (YTD) Palladium price, daily moving average (dma), and volume 50 dma (lhs)

200 dma (lhs) $1,200

$750

$1,000

$700 $800

$650 $600

$600

$550

$400

$500 $200 $-

Jan-17

Dec-16

Nov-16

Oct-16

Sep-16

Aug-16

Jul-16

May-16

$400

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)

Mar-16



Daily volume in palladium front month contracts averaged $311 million in January, well above the $232 million the month prior.

Volume (rhs) $800

Feb-16



Palladium rose 10.8% in January to $754.3/ounce. Palladium remained the top performer among the precious metals complex despite suffering its largest one day drop in nearly 4 years of 7.3% on January 25th.





Investment Outlook


Palladium price and exchange inventories

10 60

20



2017

2015

2016

2013

2012

2011

2010

(15)


Palladium is highly levered to the global auto industry 3.0

750

600 1.5

550 500

1.0

450

Pr ice, US$/ounce

650

2.0

400

0.5

350 2016

2015

2014

2013

2012

2011

2010

300 2009

0.0 2008

EM Currencies: The Russian Ruble and South African Rand rose 2.2% and 1.9% respectively against a falling dollar in January- increasing local costs for palladium producers.

800

US Auto Sales Euro Auto Sales

700

2007

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

Palladium price (rhs) China Auto Sales

2.5 A uto Sales, millions of units

Global Auto Sales: Chinese auto sales continued to rise in December (up 9.4% year over year) driven by attractive dealer incentives and tax breaks. In the US, auto sales fell from 1.67 million in December to 1.13 million in January 2017, driven by softer seasonal demand and inventory glut.

Source: Bloom berg, ETF Securities. Chart data from 01/31/05 to 1 2/31/16

Palladium demand by sector (excluding ETFs and similar)

Fundamentals 

(10)

-

2005



(5)

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



5

40

Factors 

15

80

2009

Futures: Net speculative positioning in palladium futures extended in January to 18,059 contracts as long positions were extended by 39% while short positions also increased by 19% helping spur volatility this month.

20

2006



Inventories: NYMEX palladium inventories saw 9,045 ounces withdrawn in January following additions in December. This brought total holdings to 63,600 ounces.

Monthly palladium net flows in ETFs (rhs) 25

100

2008



ETFs: Global physically backed palladium ETFs posted net outflows in January of 5.8 metric tonnes (t). Cumulative palladium holdings totalled 47.3t with 23.4t in redemptions in the last 12 months (down 33%).

Metric tonnes of palladium (both axes)



Cumulative palladium stock in ETFs (lhs)

2014

Flows

Industrial

Autocatalyst

Physical Investment

4.8%

3.9%

2.9%

2.4%

2.5%

21 .8%

21 .3%

21 .2%

21 .0%

20.6%

7 3.0%

7 4.3%

7 5.8%

7 6.5%

7 6.6%

0.4%

0.4%

0.1 %

0.1 %

0.2%

2014

2015

2016F

2017F

70% 60% 50% 40% 30% 20% 10% 0%

2013



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. Russian Ruble (RUB) = official currency of Russia. 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. The Baltic Dry Index (BDI) is a shipping and trade index created by the London-based Baltic Exchange that measures changes in the cost to transport various raw materials. 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. Brexit is an abbreviation for "British exit," which refers to the June 23, 2016, referendum whereby British citizens voted to exit the European Union. Gross.

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. ETF001104 01/31/18

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