London, 9 April 2010

The gold price hit a new all-time high in Euro and the British Pound yesterday as the debt crisis in Greece and concerns about a hung parliament in the UK weigh on the Euro and Pound, and demand for gold as an alternative currency continues to rise. The gold price surged to EUR 862oz yesterday, up 12% year-to-date and 30% over the past twelve months (11% and 24% in British Pounds), highlighting gold’s increasing use as a hedge not just against US dollar weakness, but sovereign risks more broadly.

Investment demand for gold has soared since the outbreak of the financial crisis in the second half of 2008. Total annual gold investment more than doubled in 2009 to $55bn from $25bn in 2008 according to GFMS data.

• Gold price surges to new all time highs in Euro (EUR 862/oz) and GBP (£754/oz)
• Gold rises to 3 month high of $1,157/oz today, less than 5% below its all time USD high, despite strength of US dollar
• Platinum and Palladium prices hit new post-crisis highs as ETF Securities’ physically-backed platinum and palladium ETF holdings rise to $1.6bn, up 80% YTD and up 900% since 31 December 2008
• ETF Securities’ gold holdings rise to $8.7bn at end 1Q 2010, the largest gold ETF holdings in Europe and a 64% increase over end 2008 levels

Physically-backed gold ETFs have been the primary vehicle for gold investment, with investment in physically-backed gold ETF holdings rising 85% in 2009 to account for 34% of all gold investment last year. Last year investments in gold ETFs surpassed coin and bar investing for the first time since the first physically-backed gold ETF, Gold Bullion Securities (GBS), was listed in 2003 by the founders of ETF Securities. Physically backed gold ETFs are estimated to hold approximately $63bn worth of gold at the end of 2009 according to World Gold Council data.

ETF Securities, the pioneer of commodity ETFs, has been a major beneficiary of this trend with total gold assets under management rising above $8.7bn by the end of 1Q 2010, the largest gold ETF holdings in Europe and a 64% increase over end 2008 levels.

Physically-backed platinum and palladium ETFs have also seen strong demand with assets under management in ETF Securities’ European, US, Japan and Australia listed platinum and palladium ETFs rising to $1.6bn by the end of 1Q 2010, up 80% since the beginning of 2010 and over 9 times end 2008 levels.

ETF Securities total assets under management now stand at $17.5bn, with assets spread across ETFs tracking precious metals, energy, agriculture and industrial metal commodity returns.

Nicholas Brooks, Head of Research and Investment Strategy, commenting on the rise in the gold price said: The strong performance of gold, despite the strength of the US dollar, indicates that investors’ are increasingly viewing it as an alternative store of value, not just to the US dollar, but to fiat currencies more broadly, as sovereign risks continues to rise. The gold price has now hit new all-time highs in Euro and British Pounds and stands less than 5% below its all-time high in US dollars. Traditionally, investors concerned about the structural outlook for the US dollar would buy Euros, British Pounds or Yen. However, with policy and debt risks rising in all of these countries, investors – as well as central banks and sovereign wealth funds - are increasingly looking to gold as an alternative “hard asset” store of value

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