ETF Securities has revealed that the amount of platinum it is holding in its Physical Platinum exchange traded commodity reserves fell by ten per cent in the week leading to August 24th.

It now holds 196,190 oz of platinum which is the lowest level since February 3rd.

Over the last two weeks its reserves have dropped by more than one third as platinum prices fall while week-on-week figures have seen reserves drop by 22,000 oz.

Recent reports have suggested that the market for ETFs could be in for difficult times as the recovery of the dollar begins to influence the market for precious metals.

The Financial Times said that holdings of platinum ETFs have declined with platinum prices and palladium funds also being hit.

Production of the metals, which has been affected by power problems and the tighter emissions standards in the automotive industry, have meant strong support for fundamentals.

Subsequently, some people have been surprised by the fall.

Source:

ETF Securities Physical Platinum ETC holdings down 10 pct, 26/08/08

http://www.reuters.com/article/goldMktRpt/idUSLQ32755420080826

Platinum ETFs could be in for tough times, 20/08/08

http://www.platinum.matthey.com/media_room/platinum_etfs_could_be_in_for_tough_times_18741820.html