London, 30 September 2010

Holdings of physically-backed precious metals ETCs hit record highs, led by platinum. The uncertainty about the sustainability of the global recovery is prompting investors to look at precious metals with hybrid qualities – giving the investors both a buffer when risk assets decline, but also some correlation to the business cycle, according to EFT Securities.

Accordingly, physically backed platinum ETCs have posted the largest inflows in 33 weeks, since early February, totalling $57mn last week. Physical Silver ETCs have also been in demand, with the largest inflows in five weeks, with a net inflow of $16.7mn. However, with the gold price continuing to post fresh record highs, some investors have looked to take profit, as physically-backed gold ETCs experienced the largest withdrawal in two months, of $46.7mn last week.

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