Zurich Cantonal Bank has seen its stock of palladium grow by 17 per cent to reach 418,000 oz.

The bank holds the palladium to back up its palladium exchange-traded fund ZPAL.S.

Meanwhile, the bank's holdings to back its platinum fund grew by four per cent to 65,500 oz since June 17th.

Exchange-traded funds are used to allow investment into specific commodities without having to receive a physical delivery.

During mid-July last year, platinum exchange-traded funds held about 50,000 oz while palladium funds held about 100,000 oz.

Since then, palladium has benefited from fears over supply following the power shortages that hit South Africa during January and are ongoing.

Buying in the funds was encouraged and by July this year, a total of about 435,000 oz of platinum and 670,000 oz of palladium could be found in the funds.



Source:

Zurich Cantonal palladium ETF holdings rise 17 pct, 23/07/08
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL23100765520080723

The progress of platinum group metal exchange traded funds (ETFs), 23/07/08
http://www.platinum.matthey.com/media_room/11642008903191.html