Precious Metals

Markets & Products

A Passion to Perform.
db Physical ETC
an Overview
db Physical Exchange Traded Commodities are transparent
securities that trade on regulated exchanges. ETC enable
investors to gain physical exposure to commodities without
trading the metal. db Physical ETC are 100 % backed by the
respective metal itself and are quoted continuously during
exchange trading hours and can be bought or sold via any
bank or broker on the relevant stock exchange.
What db ETC are in addition:
Simply buy the commodity: db Physical ETC are linked 1:1
to the commodity spot price and can be seen as a physical
replicating Exchange Traded Commodity (ETC).
Physical replication: Each db Physical ETC are backed by
the replicated metal itself, which provides several benets.
Physically Backed: db Physical Precious Metal ETC are
fully backed by the underlying metal which is owned by the
issuer. Only metal satisfying LBMA (London Bullion
Market Association) or LPPM (London Platinum and
Palladium Market) requirements is accepted.
Separated Assets: Physical Precious Metal allocated to any
particular db ETC series (i.e. ISIN) is not available to satisfy
the claims of holders of a different ETC series or other
creditors.
Trustee: In case of early redemption of the series, the Trus-
tee oversees in conjunction with the Metal Agent the liqui-
dation of the metal and the compensation of security holders.
Bankruptcy Remote Issuer: The issuer is DB ETC plc, incor-
porated in Jersey. The issuer is not an operating company;
its sole business is issuing ETC Securities.
Deutsche Bank AG: Deutsche Bank AG is behind all db Physical
ETC with its expertise in exchange traded products.
Liquidity of db ETC: Very liquid and traded intra-day on major
European stock exchanges with Deutsche Bank providing intra-
day market making.
NAV comparable Value: All db ETC can be traded at their fair
value (Value per ETC Security). This value is similar to the Net
Asset Value of funds.
Minimum Tracking Error: The only divergence in returns of the
db Physical ETC and the spot price of the commodity derives
from the annual fee.
FX Hedging: Minimal exchange rate risk. Currency risk for
the euro denominated is hedged at index level by Deutsche Bank.
db Physical ETC are possible on all efficiently storable
commodities like gold, silver, platinum, palladium.
3
4 Precious Metals
6 Gold
10 Silver
14 Platinum
18 Palladium
20 The Markets
21 Market History
22 Market Basics
26 The Products
26 Economic Description
27 Products with FX Hedging
28 Checklist for physical ETCs
30 Physical Exchange Traded Commodities
30 db Physical Gold ETC
30 db Physical Gold Euro Hedged ETC
31 db Physical Silver ETC
31 db Physical Silver Euro Hedged ETC
32 db Physical Platinum ETC
32 db Physical Platinum Euro Hedged ETC
33 db Physical Palladium ETC
33 db Physical Palladium Euro Hedged ETC
34 Please note
34 Advantages
34 Key Risks
Table
of Contents
Precious metals production globally ranges from just over
20,000 tonnes of silver to a mere 4 tonnes of iridium per annum,
which is one of the rarest metals on the planet.
One of the major distinguishing features of the precious metals
trade, and specically the gold market, compared to other com-
modities is that annual mine production of gold is less than
10 % of total stock in circulation. This tends to mean that the
gold forward curve is normally in contango and that volatility
levels tend to be lower than those of other commodity markets
where reserves are signicantly lower compared to annual
demand and supply.
Gold held by central banks globally amounted to just over
30,000 tonnes as of the end of 2009. The lions share of these
gold holdings is held by the United States, Germany, France
and Italy. These countries gold holdings are equivalent to
around two-thirds of total reserves, compared to a world av-
erage of just over 10 %. By contrast, gold to total reserve ratios
are signicantly lower in Asia and the Middle East and in some
circumstances below 3 % of total reserves. The performance
of the gold price has been closely linked to the level of the US
dollar and of real interest rates in the United States.
5
Precious
Metals
Atomic
Number:
79
6
7
of this system at the end of 1971 heralded not only freely oa-
ting exchange rates, but also freely oating gold prices.
Major producers
Since 1905, South Africa had been the worlds largest producer
of gold. However, in 2007 China surpassed South African pro-
duction by 16 tonnes. During this decade, South African pro-
duction suffered from declining ore grades, maturing mines,
power disruptions and labour unrest. Today China, South Africa,
Australia and the US account for approximately 40 % of the
worlds annual gold mine production.
Major holders
Global central banks remain a powerful community in terms of
the world gold market. Their combined holdings amounted to
30,436 tonnes as of April 2010. The largest holder of reserves
is the United States with 8,134 tonnes, equivalent to 72.8 % of
the US`s total reserves. The average gold to total reserve ratio
across all central banks is 10.8 %. However, in Europe ratios
are signicantly higher with Portugal holding the highest gold
Golds chemical symbol is Au derived from the Latin word
aurum and its atomic number is 79. It was rst mined in Egypt
more than 4,000 years ago. It was used in the worlds rst
coinage around 640BC in Lydia, in what is modern-day Turkey.
Gold is a dense, lustrous, yellow precious metal that has been
used for millennia as a store of value, as a unit of exchange and
in jewellery. It is the most malleable and ductile metal known
to man such that a single gram of gold can be beaten into a
sheet of one square metre or a wire more than one mile long.

Gold is a good conductor of heat and electricity, and it is unaf-
fected by air, heat, moisture and most solvents. It is occasionally
found in nuggets, but occurs more commonly as minute grains
between mineral grain boundaries. Historically, gold was ob-
tained by panning streambeds, but modern extraction tech-
niques can economically recover gold from ore grades as low
as 0.5 parts per million. Gold was used as a benchmark for the
world monetary system between 1944 and 1971, when the
Bretton Woods agreement xed the worlds paper currencies
to the US dollar, which, in turn, was tied to gold. The collapse
Gold
History & properties
to total reserve ratio at 82 %. While European central banks can
still be considered to be overweight in gold, aggressive central
bank intervention across Asia over the past few years has led
to a dramatic increase in their FX reserves and consequently a
decline in their gold to total reserve ratios. In the case of Japan
and China, gold to total reserve ratios only reach 2.1 % and
1.0 % respectively.
Major uses
The majority of gold consumption comes from the jewellery
sector. Alloys of gold with silver, copper and other metals
are often used because pure gold is too soft for ordinary use.
When used in jewellery, it is measured in carats ( k), with
pure gold being 24 k, and lower numbers indicating higher
copper or silver content. Gold has some industrial uses,
due to its electrical conductivity, resistance to corrosion,
reflectivity and other physical and chemical properties.
It is used in electrical connectors and contacts, electronics,
restorative dentistry, medical applications, chemistry and
photography.
Exchange traded & price conventions
Gold is traded on the Tokyo Commodity Exchange (TOCOM),
the New York Mercantile Exchange (NYMEX) and the Chicago
Board of Trade (CBOT).
8
Gold price
Source: Bloomberg, as of June 2010
9
1950 1960 1970 1980 2000 1990 2010
Dollar
700
800
600
300
100
200
0
400
500
Gold price ination adjusted
Source: Bloomberg, as of June 2010
Source: Deutsche Bank Research
Gold demand
1920 1930 1950 1940 1960 1970 1980 1990 2000 2010
1.200
1.000
600
200
400
0
800
Ounce in dollar
Atomic
Number:
47
10
Silver has the chemical symbol Ag derived from the Latin
argentum and its atomic number is 47. First mined on a large
scale around five thousand years ago in an area that is mo-
dern-day Turkey, its use was widespread due to ease of
access since silver deposits form on or near the earths
surface. Silver is often found in close proximity to other ores,
such as lead, copper and zinc.
Silver has the highest electrical conductivity of all metals, but
its cost, being 64 times more expensive than copper, has pre-
vented it from being used more widely for electrical purposes.
It is also ductile, malleable, a superior conductor of heat and
a good reflector of light. Sterling silver is a commonly used
alloy of silver containing 92.5 % silver and 7.5 % copper.
Major producers & consumers
Approximately three-quarters of silver is mined from gold,
copper, lead and zinc mines as a by-product of these metals.
Peru is the worlds largest producer of silver with 4000 tonnes
in 2009, followed by Mexico, China, Australia and Chile. Due
to silvers importance in industrial applications, the US and
Japan are the largest consumers representing almost 40 %
of world fabrication demand. India and China are the worlds
third and fourth largest consumers of the metal.
Major uses
Throughout history, silver has been used in the manufacture
of ornaments, utensils, jewellery and coins. Today demand
for silver is dominated by three main categories: jewellery
and silverware, industrial applications and photography.
Jewellery and silverware is not only the largest category of
demand, but also the one most sensitive to price.
Unlike gold, silver has significantly more industrial applica-
tions due to the fact that silver is 50 times cheaper than gold.
Due to its conductivity, silver is used extensively in the elec-
Silver
History & properties
11
tronics sector as well as in photography. However, photogra-
phic fabrication demand for silver has fallen steadily over
recent years due to the increasing popularity of digital came-
ras. Other industrial applications of silver include use in cata-
lysts, water purification, electrical applications, brazing and
soldering, mirror and other coatings and electroplating.
Exchange traded
Silver is traded on the COMEX division of the New York Mer-
cantile Exchange (NYMEX), the Chicago Board of Trade
(CBOT), and the Tokyo Commodities Exchange (TOCOM). The
COMEX silver futures contract specifies delivery of 5,000 troy
ounces, and is quoted in US cents per troy ounce. The Bloom-
berg ticker for the spot silver price is SLVRLN <Commodity>
and is quoted in US cents per troy ounce.
12
13
1960 1970 1980 2000 1990 2010
Dollar
35
40
30
15
5
10
0
20
25
Silver price
Source: Bloomberg, as of June 2010
1970 1980 1990 2000 2010
100
80
40
20
0
60
Gold silver ratio
Gold silver ratio
Source: Bloomberg, as of June 2010
Industry
Photography
Jewellery
Silver goods
Coins & Bars 53 %
8 %
19 %
7 %
13 %
Source: Silver Institut
Silver demand
Industry
Photography
Jewellery
Silver goods
Coins & Bars 53 %
8 %
19 %
7 %
13 %
Atomic
Number:
78
14
metal in 1751. Until recently, the definition of a metre was
based on the distance between two marks on a platinum/
iridium bar housed at the Bureau International des Poids et
Mesures in Svres, France. Even today, the definition of a
kilogram is based on a platinum/iridium cylinder also housed
in the Bureau.
Major producers
Around 80 % of the worlds reserves and production of platinum
occur in Southern Africa primarily in South Africas Bushveld
Igneous Complex, just north of Pretoria. Platinum also occurs
in Zimbabwes Great Dyke, which bisects the country from
north to south. Of the remaining global deposits, Russias are
the most signicant and these are predominantly a by-product
of Norilsks nickel deposits. Other major producers are Canada
and the US although production in these countries is mostly
a by-product of nickel and palladium production. In terms of
yield, 7 to 12 tonnes of ore are required to produce just one
troy ounce, or approximately 31 grams, of platinum.
Platinum has the chemical symbol Pt and its atomic number
is 78. The English word platinum derives from the Spanish
word platina meaning little silver as the Spaniards named the
metal when they first encountered it in Colombia. Platinum
is one of the noble metals, which means, very few chemicals
react with it or corrode it. It is 30 times rarer than gold, re-
presenting around 3 parts per billion of the Earths crust. In
addition, it is twice as heavy as gold. Like gold, platinum is
pliable such that one gram can be rolled into a fine wire over
one mile long.
The metal has excellent catalytic properties and its resistance
to tarnishing makes it well suited for making jewellery. It is
extremely corrosion resistant and has a high melting point. It
is used in fuel cells as a catalyst to convert hydrogen and
oxygen to electricity. Platinum has been found in objects from
ancient Egyptian civilisation as early as 700BC. However, it is
claimed to have been discovered by astronomer Antonio de
Ulloa in the mid-1700s and was formally recognised as a new
Platinum
History & properties
15
Major uses
Autocatalytic applications are the largest single use of platinum,
accounting for over 50 % of total platinum usage. Its use is
predominantly to clean tailpipe emissions in light-duty diesel
automotives. Jewellery is the second most important source
of demand, accounting for around 20 % of total demand with
Japan and China representing the majority of the global plati-
num jewellery market. Platinum is also becoming increasingly
important as an industrial metal in the chemical, electrical and
glass manufacturing industries. However, it is platinum as well
as rutheniums role as a catalyst in hydrogen fuel cell techno-
logy which could revolutionise demand for these metals parti-
cularly in an environment of high oil prices. Fuel cells convert
the energy of a chemical reaction directly into electricity, with
heat as a by-product. Unlike in the use of fossil fuels, the
exhaust product of a fuel cell is simply water.
Exchange traded & price conventions
The main exchange for trading platinum futures is the Tokyo
Commodities Exchange but they are also listed on the New
York Mercantile Exchange. The Bloomberg ticker for the
platinum spot price is PLTMLNPM <Commodity>.
16
Platinum price
Source: Bloomberg, as of June 2010
1987 1990 1995 2000 2005 2010
Dollar
2.000
1.500
500
0
1.000
Chinas import of Platinum
01/09 03/09 05/09 07/09 09/09 01/10 11/09 03/10
Dollar*
600
500
200
100
0
300
400
* in millions, Source: Bloomberg, as of June 2010
17
Europe
Japan
North America
China
Rest of World
27 %
14 %
35 %
7 %
17 %
Platinum demand (Geographic)
Source: Johnson Matthey
Europe
Japan
North America
China
Rest of World
27 %
14 %
35 %
7 %
17 %
Car Catalyser
Chemistry
Electricity
Investments (ETC)
Jewellery
31 %
47 %
12 %
7 %
3 %
Platinum demand
Car Catalyser
Chemistry
Electricity
Investments (ETC)
Jewellery
31 %
47 %
12 %
7 %
3 %
Source: Johnson Matthey as of 31.12.2009
Atomic
Number:
46
18
suited for jewellery. Palladium was discovered by the English
chemist William Hyde Wollaston in 1803. Until recently,
palladium chloride was used in the treatment of tuberculosis
and it has played an important role in cold fusion experiments.
Major producers
The Russian mining company Norilsk Nickel is a major pro-
ducer of palladium as a by - product of its nickel operations.
Palladium has the chemical symbol Pd and its atomic number
is 46. Palladium has similar chemical attributes to platinum,
although it is less dense with a specific gravity of 12 compa-
red to platinums gravity of 21.5. Palladium also has the lowest
melting point of all of the platinum group metals (PGM) at
1,555 C compared to the melting point of 1,768 C of plati-
num. The metal has excellent catalytic properties and
although not as resistant to tarnishing as platinum, it is still well
Palladium
History & properties
19
In 2007, Norilsk Nickel represented around 43 % of world
supply. However, 80 % of the worlds reserves of palladium,
occur in Southern Africa primarily in South Africas Bushveld
Igneous Complex but also in Zimbabwes Great Dyke.
Amongst the remaining global deposits, the United States
and Canada have a small percentage of global reserves, with
few reserves of any consequence elsewhere in the world.
Major uses
Like platinum, autocatalytic applications represent the largest
category of demand, accounting for 58 % of total palladium
usage. In 2007, electronics and jewellery accounted for nearly
15 % and 10 % respectively of palladium demand. Palladium
is also used in electronic and dental industries as well as in
anti -cancer medication as it inhibits cell division.
Exchange traded & price conventions
Until 2000, when onerous restrictions were imposed on various
contracts, the Tokyo Commodities Exchange was the main
exchange for trading palladium futures. During the last decade
COMEX, which forms part of NYMEX, has become the largest
liquid exchange for trading palladium. The Bloomberg ticker
for the palladium spot price is PLDMLNPM <Commodity>.
Car Catalyser
Chemistry
Electricity
Investments (ETC)
Jewellery
48 %
11 %
6 %
19 %
16 %
Palladium demand
Source: Johanson Matthey
Palladium price
1994 1996 1997 1995 1998 1999 2000 2001 2002 2003 2004 2005 2008 2009 2006 2007 2010
Dollar
1.000
800
400
200
0
600
Source: Bloomberg, as of June 2010
Car Catalyser
Chemistry
Electricity
Investments (ETC)
Jewellery
48 %
11 %
6 %
19 %
16 %
20
The Markets
21
Platinum & Palladium
Platinum and palladium have a very recent history, unlike gold
and silver, which have been known since the earliest civilisa-
tions. Platinum was only categorised as a precious metal in
1751 and palladium was isolated as a separate metal less than
200 years ago. In this relatively short period, and despite only
limited availability of the metals, they have made major con-
tributions to modern scientic progress. London has always
been an important centre for the metals. Trading was estab-
lished in the early decades of this century, usually alongside
the longer established bullion metals. In 1973 the London
Platinum Quotation was introduced. It was the forerunner of
the xings; a twice-daily indication of the market price for spot
platinum, reported by some of the principal companies dealing
in the metal. In 1979 the leading London and Zurich dealers
reached an agreement to standardise the specications and
provenance of metal which they would accept as good delivery.
In 1987 the informal trading which had taken place for many
years on a principal to principal basis was formalised via a Deed
of Establishment into the London Platinum and Palladium
Market. In 1989 the London Platinum and Palladium Quotations
were expanded and upgraded to full Fixings.
Gold & Silver
Records trace bullion transactions in London back to the 17th
century with the formation of the oldest original member of
the market, Mocatta and Goldsmid, in 1684. It was, however,
the introduction of the London Silver Fixing in 1897 and the
London Gold Fixing in 1919 that marked the beginning of the
markets structure and of the cooperation between members
that has created the marketplace as it is today.
The five members of the London Gold Fixing dominated the
UK marketplace until 1980 when, fuelled by oil price inflation
and spiralling international tension, gold reached 850 Dollar
per ounce and silver 50 Dollar per ounce. The level of activity
and profitability in the market drew increasing global attention,
which resulted in an influx of international players to London
and set the market on course to become the centre of the
international arena that it is today.
The growth in the number and type of market participants in
the early 1980s, combined with the introduction of the Finan-
cial Services Act in 1986, brought about the formation of the
LBMA in 1987.
Market History
22
Allocated Accounts
(Form of db ETC storage in respect of allocated bullion)
These accounts are opened when a customer requires metal
to be physically segregated and needs a detailed list of
weights and assays. The client has full title to the metal in the
account, which is held by the dealer as custodian for the
client.
Unallocated Accounts
These represent the most straightforward and hence most
popular way of trading, settling and holding gold, silver,
platinum and palladium and are the cornerstone of the loco
(meaning the place at which gold is physically held and to
which a particular price applies) London mechanism for
bullion and the loco London / Zurich * mechanism for platinum
and palladium. The units of these accounts are one fine troy
ounce of gold and one troy ounce of silver, platinum or palla-
dium based upon a 995 fine LGD gold bar, a 999 fine LGD
silver bar or a 999.5 GD platinum or palladium plate or ingot.
Market Basics
* Please note: The products are based on Loco London only.
23
Trading Unit
In relation to gold the trading unit is one ne troy ounce and for
silver, platinum and palladium it is one troy ounce. The signicance
of this differentiation is that in the case of gold, the unit represents
pure gold irrespective of the purity of a particular bar, whereas
for silver, platinum and palladium it represents one ounce of
material, of which a minimum of 999 parts in every 1,000 is silver
and 999.5 parts in every 1,000 is platinum or palladium.
Fineness is a measure of the proportion of gold or silver in a
bullion bar or platinum or palladium in a plate or ingot and is
expressed in terms of the ne metal content in parts per 1,000.
Fineness therefore denes the purity of a gold or silver bar or
platinum or palladium plate or ingot.
Assaying is the process by which fineness is determined. The
purity of silver, platinum and palladium articles is often quoted
in the form of fineness for instance, sterling silver is 925
fine. On the other hand, the fineness of gold jewellery is usu-
ally expressed in carats (parts of fine gold per 24). Eighteen-
carat jewellery is therefore 750 fine in bullion market terms.
Troy Ounce
The traditional unit of weight used for precious metals. The term
derives from the French town of Troyes, where this unit was
first used in the Middle Ages. One troy ounce is equal to
1.0971428 ounces. In the bullion market, all references to
ounces mean troy ounces.
Unit for Delivery of Loco London Gold
A London Good Delivery gold bar must have a minimum ne-
ness of 995.0 and a gold content of between 350 and 430 ne
ounces with the bar weight expressed in multiples of 0.025 of
an ounce (which is the smallest weight used in the market).
Bars are generally close to 400 ounces or 12.5 kilograms. Both
gold and silver Good Delivery bars must conform to the
specications for Good Delivery set by the LBMA.
24
Unit for Delivery of Loco London Silver
A London Good Delivery silver bar must have a minimum ne-
ness of 999 and a weight range between 750 and 1,100 ounces,
although it is recommended that ideally bars should be pro-
duced within the range of 900 to 1,050 ounces. Bars generally
weigh around 1,000 ounces.
Unit for Delivery of Loco London Platinum and
Palladium
A Good Delivery platinum or palladium plate or ingot must have
a minimum neness of 999.5 and a weight of between 1 kilo-
gram (32.151 troy ounces) and 6 kilograms (192.904 troy
ounces). The weight of the plate or ingot if in grams must be
expressed to one decimal place and if in troy ounces to three
decimal places. Both platinum and palladium Good Delivery
plates or ingots must conform to the specications for Good
Delivery set by the LPPM.
The Gold Fixing
There are ve members of the Gold Fixing all of whom are
Market Making Members of the LBMA. The Fixing is conducted
by telephone twice on each London business day at 10.30 a.m.
and 3.00 p.m. Clients place orders with the dealing rooms of
Fixing Members, who net all orders before communicating the
net interest to their representative at the Fixing.
The gold price is then adjusted up and down until sell and buy
orders are matched, at which point the price is declared
fixed and all orders are executed on the basis of that price.
Transparency at the Fixing is served by the fact that customers
may be kept advised of price changes, together with the level
of interest, while the Fixing is in progress and may cancel,
increase or decrease their interest dependent upon this infor-
mation. The chairmanship of the Fixing rotates annually among
the member firms.
25
The Silver Fixing
Three Market - Making Members of the LBMA conduct the Silver
Fixing meeting under the chairmanship of The Bank of Nova
Scotia Scotia Mocatta by telephone at 12.00 noon each London
business day. The other two members of the Silver Fixing are Deut-
sche Bank AG London and HSBC Bank USA NA London Branch.
The process then follows a similar pattern to gold, arriving at a xing
price when buying and selling orders are matched.
The Platinum and Palladium Fixings
The Platinum and Palladium Fixings are currently conducted by
four Full Members of the LPPM by telephone at 9.45 a.m. and 2.00
p.m. each London business day under the chairmanship of Stan-
dard Bank. The other LPPM Fixing members are Engelhard Metals,
Goldman Sachs International and HSBC Bank USA NA London
Branch. The process then follows a similar pattern to the gold, arri-
ving at a xing price when buying and selling orders are matched.
The Products
26 26 26 26
Economic
Description
db ETC based on precious metals directly invest in the precious
metals; any securities issued by db ETC based on precious
metals therefore directly reect the relevant underlying. The
amount outstanding of all db ETC on precious metals is mirrored
by the relevant metals deposited.
The securities issuer is DB ETC plc, an entity founded for the
sole purpose of issuing securities and investment in precious
metals. DB ETC plc does not carry out any other business and
any business risk is therefore effectively eliminated. All de-
posited precious metals are legally owned by the issuer. In ad-
dition, to reach a higher level of security, the stock is then
pledged to a trustee corporation. This happens solely for the
purpose of ensuring that no potential creditor has access to the
precious metal stock in the unlikely event of default of the
Functionality (graphical)
Investor
Market
Maker
DB
ETC
PLC
Perfomance
Trustee
Corporation
(Deutsche Treuhand)
AU, AG,
PAL, PLAT
(Allocated)
USD USD USD
Legal ownership
27 27
Precious metals, like other major commodities, are quoted in
USD. A direct investment in these commodities hence ex-
poses investors whose main currency is not the US dollar to
the risk of foreign exchange fluctuations. Specifically, a
depreciation of the US dollar will result in a loss /reduced gain
for non-US dollar based investors (e.g. Euro investors).
db FX Hedged ETC enable investors to gain exposure to the returns
of precious metals while minimising any currency risk. The perfor-
mance of db FX Hedged ETC is approximately equal to the perfor-
mance of metal, but in the hedged currency (e.g. the Euro).
The advantage of the currency hedge lies in the fact that its
costs are easy to calculate: the short term interest rate in the
US dollar area minus the short term interest rate in the
Products with
FX Hedging
1971 1975 1980 1985 1990 1995 2000 2005 2010
3.000
2.000
2.500
1.000
500
0
1.500
Index at 100
Gold price performance in USD
Source: Bloomberg, as of June 2010
Gold from USD perspective
Gold from EURO perspective
hedged currency. Currency hedging is carried out on a
daily basis.
28
swap or trade any precious metal that forms the Metal
Entitlement for the db ETC Securities.
Stored Bar Numbers
Bar lists are verifiable against the LBMA and LPPM Good
Delivery list.
Storage
Allocated metals are kept in fortified, high-security vaults
specifically designed for bullion storage.
Bankruptcy remote issuer
The Issuer is a bankruptcy remote vehicle whose sole purpose
is to issue ETC securities. The metal in respect of each Series
of ETC Securities is segregated from all other Series.
Silo Structure
Metal in respect of each Series of db ETC Securities is owned
by the Issuer and held in secured form solely for that Series.
As such this metal is segregated from any other assets held
by the Custodian for the benefit of other Series of db ETC
Securities issued by the Issuer (both physically and in its
records).
Traditional Investments
Physically-backed db ETC are 100 % physically backed with
LBMA or LPPM Good Delivery gold, silver, platinum or
palladium bars as may be the case held in secured accounts
owned by the issuer.
Bars have a set number of ounces and a prescribed fineness
(purity) of 99.5 % and must bear the stamp of an LBMA or
LPPM - approved smelter / assayer. They are the only bars
permitted for delivery in the London OTC market. Bullion held
loco London is the most liquid.
Metal Accounts
The accounts operated by the Custodian holding the relevant
precious metal for a Series of db ETC Securities is sufcient at
any point in time to cover the 100 % of the db ETC securities
that are oustanding.
All precious metal is secured
The Metal Entitlement for each DB ETC security represented
by precious metal and held by the Custodian on behalf of the
security holders cannot be exchanged for cash, certificates
representing the right to receive precious metal or anything
else. Neither the Issuer nor the Custodian is allowed to lease,
Checklist for
physical ETCs
29
Transparent pricing
The securities are tradeable at the daily calculated and
published Value per ETC Security (which is similar to a NAV
concept). This value is easy to calculate, and allows market
makers to efficiently trade db ETC Securities and provide liquid
prices and execution to the market.
Limited-Recourse Assets
In respect of each series of ETC securities, the underlying
physical metal (Secured Property) is owned by the Issuer and
held through the secured account custodian. It is further
secured in favour of the trustee on behalf of the security
holders. Each series of ETC securities will have recourse
only to the respective Secured Property (i.e. ring-fenced),
which is not available to satisfy the claims of holders of a
different series of ETC securities.
30
Physical Exchange Traded Commodities
Source: Deutsche Bank

Product Gold
Name db Physical Gold ETC
Objective The objective of the db Physical Gold ETC is to
refect the performance of the price of gold bullion,
less the ETC fees.
Underlying Allocated Gold bars London Bullion Market
Replication Form Physical
Initial Entitlement 1 /10 fne Troy Ounce
Curreny USD
ISIN GB00B5840F36
Bloomberg XGLD LN
REUTERS XGLD. L
Product Fee 0.29 % p.a.
Issuer DB ETC plc
Market Maker Deutsche Bank AG, London Branch

Underlying
Bloomberg GOLDLNPM
REUTERS XAU =
Bars London Good Delivery Gold bars
Storage Allocated Form, London Bullion Market
Custodian/ Sub-custodian Deutsche Bank / JP Morgan Chase Bank, London
Trustee Deutsche Trustee Company Limited

Trading
Listed Exchanges London Stock Exchange
Trading Hours 9:00 am 5:30 pm
Exchange Code XGLD
Settlement T+3
Cutoff Time 2:30 pm
Additional NAV Trading Cost 0.00 %
Source: Deutsche Bank

Product Gold with FX hedge
Name db Physical Gold Euro Hedged ETC
Objective The objective of the db Physical Gold ETC is to
refect the performance of the price of gold bullion
regardless of the currency, less fees.
Underlying Allocated Gold bars London Bullion Market
Replication Form Physical
Initial Entitlement 1 /10 fne Troy Ounce
Curreny Euro
ISIN DE000A1EK0G3
Bloomberg XAD1 GY
REUTERS XAD1. DE
Product Fee 0.29 % p. a.
FX Hedge Fee 0.3 % p. a.
Issuer DB ETC plc
Market Maker Deutsche Bank AG, London Branch

Underlying
Bloomberg GOLDLNPM
REUTERS XAU =
Bars London Good Delivery Gold bars
Storage Allocated Form, London Bullion Market
Custodian/ Sub-custodian Deutsche Bank / JP Morgan Chase Bank, London
Trustee Deutsche Trustee Company Limited

Trading
Listed Exchanges Xetra
Trading Hours 9:00 am 5:30 pm
Exchange Code XAD1
Settlement T+2
Cutoff Time 2:30 pm
Additional NAV Trading Cost 0.00 %
31
Source: Deutsche Bank

Product Silver
Name db Physical Silver ETC
Objective The objective of the db Physical Silver ETC is to
refect the performance of the price of Silver bullion,
less the ETC fees.
Underlying Allocated Silver bars London Bullion Market
Replication Form Physical
Initial Entitlement 10 Troy Ounce Silver
Curreny USD
ISIN GB00B57Y9462
Bloomberg XSIL LN
REUTERS XSIL.L
Product Fee 0.45 % p. a.
Issuer DB ETC plc
Market Maker Deutsche Bank AG, London Branch

Underlying
Bloomberg SLVRLN
REUTERS XAG =
Bars London Good Delivery Silver bars
Storage Allocated Form, London Bullion Market
Custodian /Sub-custodian Deutsche Bank / JP Morgan Chase Bank, London
Trustee Deutsche Trustee Company Limited

Trading
Listed Exchanges London Stock Exchange
Trading Hours 9:00 am 5:30 pm
Exchange Code XSIL
Settlement T+3
Cutoff Time 10:30 am
Additional NAV Trading Cost 0.00 %
Source: Deutsche Bank

Product Silver with FX hedge
Name db Physical Silver Euro Hedged ETC
Objective The objective of the db Physical Silver ETC is
to refect the performance of the price of Silver
bullion regardless of the currency, less fees.
Underlying Allocated Silver bars London Bullion Market
Replication Form Physical
Initial Entitlement 10 Troy Ounce Silver
Curreny Euro
ISIN DE000A1EK0J7
Bloomberg XAD2 GY
REUTERS XAD2.DE
Product Fee 0.45 % p. a.
FX Hedge Fee 0.3 % p. a.
Issuer DB ETC plc
Market Maker Deutsche Bank AG, London Branch

Underlying
Bloomberg SLVRLN
REUTERS XAG =
Bars London Good Delivery Silver bars
Storage Allocated Form, London Bullion Market
Custodian / Sub-custodian Deutsche Bank /JP Morgan Chase Bank, London
Trustee Deutsche Trustee Company Limited

Trading
Listed Exchanges Xetra
Trading Hours 9:00 am 5:30 pm
Exchange Code XAD2
Settlement T+2
Cutoff Time 10:30 am
Additional NAV Trading Cost 0.00 %
32
Source: Deutsche Bank

Product Platinum
Name db Physical Platinum ETC
Objective The objective of the db Physical Platinum ETC is to
refect the performance of the price of platinum bullion,
less the ETC fees.
Underlying Allocated Platinum bars London Platinum & Palladium
Market
Replication Form Physical
Initial Entitlement 1 /10 Troy Ounce Platinum
Curreny UDS
ISIN GB00B57GJC05
Bloomberg XPLA LN
REUTERS XPLA.L
Product Fee 0,45%
Issuer DB ETC plc
Market Maker Deutsche Bank AG, London Branch

Underlying
Bloomberg PLTMLNPM
REUTERS XPT=
Bars London Good Delivery Platinum bars
Storage Allocated Form, London Platinum & Palladium Market
Custodian/ Sub-custodian Deutsche Bank / JP Morgan Chase Bank, London
Trustee Deutsche Trustee Company Limited

Trading
Listed Exchanges London Stock Exchange
Trading Hours 9:00 am 5:30 pm
Exchange Code XPAL
Settlement T+3
Cutoff Time 1:30 pm
Additional NAV Trading Cost 0,00 %
Source: Deutsche Bank

Product Platinum with FX hedge
Name db Physical Platinum Euro Hedged ETC
Objective The objective of the db Physical Platinum ETC is to
refect the performance of the price of platinum bullion,
less the ETC fees.
Underlying Allocated Platinum bars London Platinum &Palladium
Replication Form Physical
Initial Entitlement 1 /10 Troy Ounce Platinum
Curreny Euro
ISIN DE000A1EK0H1
Bloomberg XAD3 GY
REUTERS XAD3. DE
Product Fee 0,45 %
FX Hedge Fee 0,30 %
Issuer DB ETC plc
Market Maker Deutsche Bank AG, London Branch

Underlying
Bloomberg PLTMLNPM
REUTERS XPT=
Bars London Good Delivery Platinum bars
Storage Allocated Form, London Platinum & Palladium Market
Custodian/ Sub-custodian Deutsche Bank / JP Morgan Chase Bank, London
Trustee Deutsche Trustee Company Limited

Trading
Listed Exchanges Xetra
Trading Hours 9:00 am 5:30 pm
Exchange Code XAD3
Settlement T+2
Cutoff Time 1:30 pm
Additional NAV Trading Cost 0,00 %
Market

33
Source: Deutsche Bank

Product Palladium
Name db Physical Palladium ETC
Objective The objective of the db Physical Palladium ETC is to
refect the performance of the price of Palladium
bullion, less the ETC fees.
Underlying Allocated Palladium bars London Platinum & Palladium
Market
Replication Form Physical
Initial Entitlement 1/10 Troy Ounce Palladium
Curreny USD
ISIN GB00B5VYVZ75
Bloomberg XPAL LN
REUTERS XPAL.L
Product Fee 0.45 %
Issuer DB ETC plc
Market Maker Deutsche Bank AG, London Branch

Underlying
Bloomberg PLDMLNPM
REUTERS XPD=
Bars London Good Delivery Palladium bars
Storage Allocated Form, London Platinum & Palladium Market
Custodian /Sub-custodian Deutsche Bank / JP Morgan Chase Bank, London
Trustee Deutsche Trustee Company Limited

Trading
Listed Exchanges London Stock Exchange
Trading Hours 9:00 am 5:30 pm
Exchange Code XPAL
Settlement T+3
Cutoff Time 1:30 pm
Additional NAV Trading Cost 0,00 %
Source: Deutsche Bank

Product Palladium with FX hedge
Name db Physical Palladium Euro Hedged ETC
Objective The objective of the db Physical Palladium ETC is to
refect the performance of the price of Palladium
bullion, less the ETC fees.
Underlying Allocated Palladium bars London Platinum & Palladium
Replication Form Physical
Initial Entitlement 1/10 Troy Ounce Palladium
Curreny Euro
ISIN DE000A1EK3B8
Bloomberg XAD4 GY
REUTERS XAD4.DE
Product Fee 0.45 %
FX Hedge Fee 0.30 %
Issuer DB ETC plc
Market Maker Deutsche Bank AG, London Branch

Underlying
Bloomberg PLDMLNPM
REUTERS XPD=
Bars London Good Delivery Palladium bars
Storage Allocated Form, London Palladium & Palladium Market
Custodian / Sub-custodian Deutsche Bank /JP Morgan Chase Bank, London
Trustee Deutsche Trustee Company Limited

Trading
Listed Exchanges Xetra
Trading Hours 9:00 am 5:30 pm
Exchange Code XAD4
Settlement T+2
Cutoff Time 1:30 pm
Additional NAV Trading Cost 0,00 %
Market

Key Risks
db ETC are non-principal protected investments, therefore
an investors capital will be at risk up to a total loss.
Prices of precious metals are generally more volatile than
prices of other asset classes.
Investments in db Physical ETC will not accrue any
interest and performance is subject to the deduction of the
product fee.
The value of an investment in db ETC securities may go down
as well as up and past performance is not a good indicator
of future performance.
Investing in ETC Securities will not make an investor the
owner of the relevant Metal.
Investment in db ETC is only suitable for nancially sophisti-
cated investors who can understand the risk associated with
such investment.
Advantages
Convenience: An easy way to gain exposure to the spot
returns of the underlying precious metal.
Liquidity: Very liquid and traded intra-day on major European
stock exchanges with Deutsche Bank providing intra-day
market making.
Minimal tracking error: Returns of the ETCs are equal to
the spot returns of the underlying metal minus any fees
applicable.
Physical ownership: Backed by the corresponding physical
metal.
Transparent to value: Precious metal prices are published
daily in major newspapers, TV and other news sources.
Segregated: The physical metal is stored in secure vaults
and each ETC series has a security over specific metal
account held by the custodian.
db PM Euro Hedged ETC have a daily currency hedging
mechanism to minimise the EUR / USD exchange rate risk.
Please note
34
Disclaimer
Important Information:
This document is intended for discussion purposes only and does not
create any legally binding obligations on the part of Deutsche Bank AG
and/or its afliates (DB). Without limitation, this document does not
constitute an offer, an invitation to offer or a recommendation to enter
into any transaction. When making an investment decision, you should
rely solely on the nal documentation relating to the transaction and not
the summary contained herein. DB is not acting as your nancial adviser
or in any other duciary capacity with respect to this proposed transaction.
The transaction(s) or products(s) mentioned herein may not be appropri-
ate for all investors and before entering into any transaction you should
take steps to ensure that you fully understand the transaction and have
made an independent assessment of the appropriateness of the transaction
in the light of your own objectives and circumstances, including the pos-
sible risks and benets of entering into such transaction. For general in-
formation regarding the nature and risks of the proposed transaction and
types of nancial instruments please go to www.globalmarkets.db.com/
risk disclosures. You should also consider seeking advice from your own
advisers in making this assessment. If you decide to enter into a transac-
tion with DB, you do so in reliance on your own judgment. The informa-
tion contained in this document is based on material we believe to be
reliable; however, we do not represent that it is accurate, current, com-
plete, or error-free. Assumptions, estimates and opinions contained in this
document constitute our judgment as of the date of the document and are
subject to change without notice. Any projections are based on a number
of assumptions as to market conditions and there can be no guarantee
that any projected results will be achieved. Past performance is not a
guarantee of future results. This material was prepared by a Sales or Tra-
ding function within DB, and was not produced, reviewed or edited by the
Research Department. Any opinions expressed herein may differ from the
opinions expressed by other DB departments including the Research De-
partment. Sales and Trading functions are subject to additional potential
conicts of interest which the Research Department does not face. DB
may engage in transactions in a manner inconsistent with the views dis-
cussed herein. DB trades or may trade as principal in the instruments (or
related derivatives), and may have proprietary positions in the instruments
(or related derivatives) discussed herein. DB may make a market in the
instruments (or related derivatives) discussed herein. Sales and Trading
personnel are compensated in part based on the volume of transactions
effected by them. The distribution of this document and availability of
these products and services in certain jurisdictions may be restricted by
law. You may not distribute this document, in whole or in part, without
our express written permission. DB SPECIFICALLY DISCLAIMS ALL LIA-
BILITY FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL OR OTHER LOS-
SES OR DAMAGES INCLUDING LOSS OF PROFITS INCURRED BY YOU
OR ANY THIRD PARTY THAT MAY ARISE FROM ANY RELIANCE ON THIS
DOCUMENT OR FOR THE RELIABILITY, ACCURACY, COMPLETENESS
OR TIMELINESS THEREOF. DB is authorised under German Banking Law
(competent authority: BaFin - Federal Financial Supervising Authority) and
regulated by the Financial Services Authority for the conduct of UK busi-
ness.
Picture source: Cover: Corbis, p. 4-5 Corbis, p. 6-7: Shutterstock, Heraeus, Mauritius,
Getty Images, p. 8-9: Corbis, Mauritius, Heraeus, p. 10-11: Corbis, Fotolia, Shutterstock,
p. 12-13: Corbis, Shutterstock, Heraeus, p. 14-15: Corbis, Shutterstock, p. 16-17: Getty
Images, Shutterstock, p. 18-19: Corbis, Picture Alliance, p. 20-21: Corbis, Getty Images,
p. 22-23: Corbis, Getty Images, p. 24-25: Corbis, Getty Images, p. 26-27: Corbis, Shut-
terstock, p. 28-29: Corbis, Getty Images, Shutterstock, p. 30-31: Fotolia, Heraeus,
p. 32-33: Corbis, Getty, Heraeus, Images, p. 34: Shutterstock

August 2010 June 2010
Deutsche Bank AG
D-60311 Frankfurt am Main
003 81133 91 db_etc_016
Convenience: An easy way to gain exposure on spot returns of
the underlying precious metal.
Liquidity of db ETC: Very liquid and traded intraday on major
European stock exchanges with Deutsche Bank providing
intraday market making.
Minimal tracking error: Returns of the ETCs are equal to the
spot returns of the underlying metal minus any applicable fees.
Physical ownership: Backed by the corresponding physical
metal.
Transparent to value: Precious metal prices are published
daily in major newspapers, TV and other news sources.
Segregated: The physical metal is stored in secure vaults and
each ETC series has a security over specic metal account
held by the custodian.
Further information
Internet: www.etc.db.com
Product information
Deutsche Bank AG
db ETC Team
Winchester House
1 Great Winchester Street
London
EC2N 2DB
Hotline: +44 (20) 754 577 00
db Exchange Traded Commodities (db ETC)