Zurich Cantonal Bank revealed that its platinum exchange-traded fund (ETF) has grown, with the bank now holding 62,300 oz of platinum.

The fund has grown by 45 per cent since February when it held 43,000 oz, Reuters revealed.

Erich Meier, Head of Asset Allocation and Alternative Investments at ZKB Asset Management, said the bank's palladium ETF has also grown by 8.5 per cent in the same period.

It now stands at 358,000 oz after hitting a peak of 380,500 oz in May.

Speaking to the news agency, Mr Meier said: "In palladium we saw a big jump in investments just after the creation of the fund, and now we have a relatively stable development, in platinum we have had a more steady increase."

The increase in demand for platinum products has been boosted by the need for catalytic converters in cars, as well as tighter regulations over emissions.

But Mr Meier revealed that supply issues were set to stay as a result of the South African power crisis.

He said it was likely to "continue for many years to come".



Source:

Zurich Cantonal platinum ETF holdings jump 45 pct, 17/06/08
http://uk.reuters.com/article/hotStocksNews/idUKL1753648320080617?sp=true