High-net worth individuals, or HNWIs, are increasingly turning towards the precious metals sector, with platinum chief among those metals according to a new study.

Investors are showing a strong appetite for 'alternative investments', with the metals sector proving a draw for many, according to the 2003 World Wealth Report published by Merrill Lynch and Cap Gemini Ernst & Young.

'The report found high-net-worth individuals continued to allocate a growing percentage of their assets to alternative investment classes,' commented James Gorman, president of Merrill Lynch's Global Private Client group.

As much of ten per cent of an individual's investment is now being put in to alternative investments.

The report suggests that the diversification into platinum and gold was in part a response to adverse market conditions.

Mr Gorman explained: 'This benchmark report highlights the need for diversified asset allocation. It is one way that HNWIs have been able to maintain their wealth during volatile markets.'

HNWIs are people with financial assets of at least $1 million, excluding real estate.