ETF Securities physical gold ETF holdings soar 15 pct
LONDON, July 7 (Reuters) - ETF Securities said on Monday the amount of bullion backing its Physical Gold exchange-traded fund (PHAU.L) rose 15 percent last week to a record 1.459 million ounces.
The rise reflected gains across its physically backed precious metal exchange-traded commodities, with its platinum and palladium ETFs extending last week's gains to new records and silver holdings rising by 1 percent.
The fund's Physical Platinum ETF (PHPT.L) holdings rose 3.5 percent to 407,000 ounces, a new all-time high, while its Physical Palladium ETF (PHPD.L) grew by 6.5 percent to a record 247,000 ounces.
Bullion holdings of its Physical Silver ETF (PHAG.L) grew to 9.527 million ounces, up 1 percent week-on-week.
ETFs, which issue securities backed by physical stocks of a particular metal, have represented a major source of new demand for precious metals in recent years.
Investing in ETFs allows buyers to gain exposure to the underlying spot gold price without dealing with the physical commodity itself.
ETF Securities head of research and investment strategy Nicholas Brooks said investment in gold was being driven by fears over inflation and by volatility in other assets such as stocks and bonds.
"We are seeing very high volatility in most financial markets - equities and bonds and credit," he said "When you have a lot of volatility and a lot of uncertainty people tend to look to precious metals, with gold being the first choice."
"People feel especially comfortable, (given) concerns about counterpart risk today, to be holding physically backed precious metals," he added.
(Reporting by Jan Harvey; Editing by Peter Blackburn)
- Tweet this
- Share this
- Digg this