• ETFS Physical Gold (GOLD) is designed to offer investors a simple, cost-efficient and secure way to access gold by providing a return equivalent to the movements in the gold spot price less the applicable management fee.

• GOLD is backed by physical allocated gold held by HSBC Bank plc (the custodian). Only metal that conforms with the London Bullion Market Association's (LBMA) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated.

• GOLD is an Exchange Traded Commodity ("ETC") that can be created and redeemed on demand (by market makers). It trades on the ASX just like an equity, is settled and held in ordinary brokerage accounts, and its pricing and tracking operates similarly to an Exchange Traded Fund. No new securities can be issued until the bullion is delivered to the Custodian's vault. There is no credit risk within this product.

We have resisted using gold as diversifier for many years, like many we have been suspicious of its unpredictability and lack of long-term income generating ability. However, as Australia enters the realm of negative interest rates the opportunity cost of holding gold is no longer an issue and there is high probability that gold will rally strongly in a crisis (so there is a tangible diversification benefit compared to lazy cash).