Topics such as precious metals and security are closely related. A physical storage of precious metals is relatively safe; however, it also generates extra costs. Investors, which would like to participate from increases in the price of gold or silver through tracker certificates, are offered a new dimension with respect to the security issue: EFG Financial Products AG is offering 1:1 participation certificates on precious metals, including the COSI feature. These products are already listed on Scoach.

Welcome to the third edition of the EFG Financial Products Quarterly. We hope that this publication will inform and entertain you, as well as offer you some helpful insight into the topics and issues we deal with on a daily basis.

The group of commodities covering rare earths is unique with respect to its functionality, as it has an impact on how efficient other raw materials can be used. Rare Earths are seen as key commodities for several high-tech products such as mobile phones, MP3 Players, wind power plants and LCD displays. In particular they are also made use of in the automobile industry, where they are playing major roles in the development of hybrid- and electric cars. As of today, demand for rare earths cannot be served by the current global supply. Experts are predicting a further increase in the demand for rare earths in the years to come.

Throughout the last twelve months, demand for corporate bonds was high. As a result, many bonds saw their yields decreasing on a steady basis. The difference between bonds on financial, automobile or even iron and steel producing companies and risk free rates (i.e. credit spreads) decreased by several percentage points. Despite such decreasing risk premiums seen within the corporate bond market, EFG Financial Products AG enables investors to profit from above average yield rates.

After the global recession throughout 2009, worldwide economic growth has picked up, displaying positive growth again. China in particular is known to be a main driver with respect to global recovery. Whereas the IMF predicts slight growth rates for the Euro-zone and Switzerland of 0.3% and 0.5% respectively, China is expected to grow 9.0% to 9.7% between 2010 and 2011. In addition to an increase in domestic demand, exports are anticipated to significantly grow.