ETF Securities has revealed that holdings of its platinum-backed PHPT.L exchange-traded commodity rose by 87 per cent to 321,369 oz in the first quarter of 2009, Reuters reported yesterday (1st April).

Furthermore, the company has noted that the amount of metal it uses to back its palladium-backed product PHPD.L increased by 64 per cent over the course of the same period.

Investors have been piling into precious metals-backed exchange-traded funds since the turn of the year as they seek a safe haven from the volatility being experienced in other asset classes.

Daniel Wills, Senior Analyst for ETF Securities, has explained that platinum-backed products are proving particularly popular.

"People are looking for hard assets with good structural growth stories," he told the news provider.

"Platinum has been getting a bit more of a pick-up from some of the more cyclical indicators consolidating a little bit."

The news comes after Zurich Cantonal Bank revealed on 18th March that holdings in its platinum exchange-traded fund have increased by 22 per cent since 5th February.

Sources:

ETF Securities' platinum holdings jump in Q1 (01/04/09
http://uk.reuters.com/article/hotStocksNews/idUKL197550220090401

Precious metals ETF holdings rise sharply in Q1 (01/04/09)
http://uk.reuters.com/article/allBreakingNews/idUKL197452920090401?pageNumber=2&virtualBrandChannel=0&sp=true

The progress of platinum group metal exchange traded funds (ETFs) (19/03/09)
http://www.platinum.matthey.com/media_room/11642008903191.html