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Your wide-aperture view of the precious metals market

HSBC precious metals: scope

No other firm can match the scope of

our involvement in the world’s gold,

silver, platinum and palladium markets:

Broad capabilities.

Our capabilities include spot, forward/

swap and options trading, deposits and

loans, physical shipments, clearing,

custody, banking, research and the

ability to customize solutions.

Deep involvement.

Our experts are deeply involved at

every stage of the value chain, from

exploration and development to

operations and industrial manufacturing.

Global footprint.

We have metals trading hubs and

analyst teams in New York, London

and Hong Kong, and sales desks

located around the world, including

Germany, Switzerland, Turkey and UAE.

This page: Gold has been used to maintain youthful skin since the days of Cleopatra and is now reappearing in luxury spas around the world.

On the cover: The gold dome ceiling of luxury shopping center Galeries Lafayette in Paris, France.

2 | HSBC precious metals

Precious metals fuel economic development, serve as a barometer of risk, provide a store of value, diversify portfolios and play an essential role in complex industries. HSBC offers an unparalleled wide-aperture view of the precious metals market to producers, consumers, investors, governments and other stakeholders.

At the heart of our offering is the ability to see the entire precious metals universe at once, from the latest exploration activity to emerging trends in supply and demand. Armed with this insight, we help our clients execute strategies with confidence – whether it’s a manufacturer wishing to mitigate risk and lock in margins, an investor seeking an edge over the market, or a central bank managing national reserves.

We serve clients in virtually every industry that deals with precious metals, including:

Auto catalysts – Platinum, palladium

�Banks and financial – Gold, silver, platinum, palladium

Battery manufacturers – Silver

Chemicals – Gold, silver, platinum, palladium

Electronics – Gold, silver, platinum

�Engineering – Gold, silver, platinum

Financials – Gold, silver, platinum

Glass – Platinum

�Government – Gold

Industrial – Silver, platinum

�Jewelry – Gold, silver, platinum

�Mining – Gold, silver, platinum, palladium

Oil and gas – Silver, platinum, palladium

Pharmaceutical – Gold, silver, platinum

Photography – Silver

Working with precious metals specialists and an HSBC relationship manager, you can seamlessly integrate precious metals solutions with all of your other banking, credit, investing and financial services needs around the world.

Platinum is widely used in catalytic convertors for auto exhaust systems.


Active at every stage of the metals value chain

HSBC Global Banking and Markets has an unparalleled understanding of precious metals, because we are active in virtually every niche of the market. No matter where your organization resides within the value chain, you can turn to HSBC for tailored solutions.

A full range of products and services

Your HSBC Relationship Manager can offer an integrated suite of products and services to meet your needs:

u� Asset management

u� Capital markets

u� Expat banking

u� FX sales

u� Hedging of rates, metals and FX

u� House banking

u� Letters of credit

u� Metal sales, leasing and lending

SOURCES

Exploration We help explorers conduct their activities around the world, including asset management, cash management, personal financial services, equity issuance, equity research, banking services and more.

Development We understand that development takes time and provide the project-financing advisory services and financial backing required to make the transition from exploration to extraction.

Operations We offer credit structuring, currency, metals-price and interest-rate hedging, metal sales and equity and debt capital markets access, and can facilitate the lease or loan of metals for use in manufacturing.


u� Payments and cash management

u� Payroll u� Premier banking

u� Project and export finance

u� Revolving and structured credit

u� Trust services

u� Vaulting

USES

Gold is used in many electronic devices, including cell phones, calculators and global positioning system (GPS) units.

ReclamationWe help miners ensure that land is safely restored with reclamation/restoration financing, letters of credit, trust services, payment facilitation, cash management and money-managed trusts.

StorageWith the largest commercial, purpose-built vaults in the world, we are uniquely positioned to ensure the safekeeping of precious metals.

ManufacturingOur sales, leasing, lending and distribution services offer multiple avenues for clients to acquire and use the precious metals they require for manufactur-ing processes.


Facilitating the global flow of precious metals

HSBC’s deep involvement at every stage of the value chain means we are key facilitators in the global flow of precious metals, whether it’s helping to get gold out of the ground in Peru and into the hands of an industrial manufacturer in China, or moving platinum from a mine in South Africa to a fertilizer producer in Canada.

GOLD PLATINUMSILVER

For illustrative purposes only.


Silver-coated ball bearings’ low coefficient of friction and resistance to high temperatures provide a critical margin of safety in jet engines.

Adhesive bandage strips contain silver which provides antimicrobial protection for both wounds and burns.

HSBC precious metals: by the numbers

1 HSBC world ranking by size as metals custodian, bullion clearer, and OTC precious metals dealer (Energy Risk Commodity Ranking 2011)

6 Global metals exchanges on which HSBC plays a leading role

24 Hours a day HSBC metals desks are open for business globally

1817 Date of HSBC’s earliest roots in the gold business

1897 Date of HSBC’s co-founding of the silver fixing

1919 Date of HSBC’s co-founding of the gold fixing


The intelligence to help you succeed

Businesses that hold precious metals in inventory as work-in-progress or as fixed assets are exposed to market volatility. HSBC Global Banking and Markets provides extensive supply, demand and industry intelligence to help these clients protect profit margins.

u��Supply-side intelligence. We leverage our visibility into market trends, mining sector conditions, volumes in circulation, and inventory (as one of the world’s main vaults) to gauge market supply and help clients anticipate, measure and hedge price volatility.

u��Market-demand intelligence. With a clear view of OTC, futures and options markets, industrial usage patterns, and trends in metal lending, leasing and sales, we are uniquely positioned to anticipate market demand and maximize value for buyers and sellers.

u� Industry intelligence. We translate our supply-and-demand knowledge into specific, actionable insights for investors and business people in a wide range of industries. This helps clients achieve goals such as minimizing financing costs, tailoring hedging exposure, reducing risk and protecting profit margins.

Some of the world’s largest retailers are installing photovoltaic systems that use silver paste to supply up to 40 percent of their power needs.

Athletic apparel companies are weaving silver thread into clothing to control bacteria and reduce odor.


HSBC precious metals: leadership

Distinctionsu� One of the few full-service banks with custody status

u� One of the largest metals custodians in the world

u� One of the largest bullion clearers in the world

u� Largest commercial vault in the world

u� Largest OTC precious metals dealer in the world

u� Among world’s largest holders of precious metals

Membershipsu� Founding member of silver fixing in 1897 and gold fixing in 1919

u� Only OTC market maker that is a member of all four fixings (gold, platinum, silver and palladium)

u� Member of the London Bullion Market Association

u� Member of the London Platinum and Palladium Market Association

u� CME (COMEX) division member

u� LME Category 2 member

u� DGCX (Dubai) member

u� SGE (Shanghai) First Foreign Bank member


Several steps ahead of the competition

Other banks cannot match the precious metals reach, focus and solution-oriented approach of HSBC.

Greater reach HSBC is the authority in global precious metals with leadership positions on six

of the world’s bullion and precious metal exchanges. Many competitors rely upon third-party brokers and investment managers to execute transactions.

Sharper focus HSBC has a specialized team whose sole focus is to research and track global

precious metals. Competitors typically have commodities teams that must monitor all commodities at once, from agricultural produce to zinc.

Better solutions HSBC is truly solution-oriented, with the in-house capabilities to structure customized, end-to-end solutions on a global scale. Competitors tend to be transaction-oriented,

forcing clients to conform with off-the-shelf products.

Batteries, generators and conventional car engines are being replaced by fuel cells that contain platinum catalysts.


The strength of history

At HSBC Global Banking and Markets, our history with precious metals dates all the way back to the founding of Samuel Mon-tagu in 1853 and Johnson Matthey Bankers’ prede-cessor in 1817. Since that time, we have been much more than just a purveyor of precious metals – we have fueled the expansion and financial growth of the sector worldwide. With the strength of history behind us, our view of the precious metals market is 360°, combining a truly global perspective with local expertise.

Gold and copper mine in Indonesia11 | HSBC precious metals

This material was prepared and is being distributed by HSBC Bank USA, National Association and HSBC Securities (USA) Inc., members of the HSBC Group. The information contained herein is believed to be reliable but we do not guarantee its accuracy or completeness. This material should be deemed as educational and not be construed as an offer or solicitation to buy or sell any securities or derivative instruments. The securities or derivative instruments mentioned herein may not be suitable for all investors. The illustrative hypothetical example herein is provided to you for informational purposes only, and does not constitute, and is not intended to constitute, the giving of advice, prediction of future performance or the making of a recommendation.

Contact us to learn more about how HSBC can offer you the world’s leading solutions for precious metals finance and investment.

Americas: Paul Voller, Head of Precious Metals,Americas+1 212 525-6515Email: [email protected]

Global Derivatives Solutions:Jerome Bussiere, Global Head of Precious Metals Options +44 207 991-7865 Email: [email protected]

Europe, Middle-East, Africa:Jeremy Charles, Global Head of Precious Metals+44 207 991-5959 Email: [email protected]

Business Development:Richard Ward, Global Metals Business Development+1 212 525-8779Email: [email protected]

Asia-Pacific:Graham J Collins, Head of Precious Metals Sales and Marketing, Asia-Pacific+852 2845-4170 Email: [email protected]