ETF Securities has started platinum and palladium exchange traded funds (ETFs) trading on the London Stock Exchange.

Initially $25 million of ETFs were floated covering platinum, palladium, gold, silver and a basket of precious metals - allowing investors to invest in the metals without taking delivery, as metals are stored within ETF Securities vaults, or dealing with futures contracts.

Each share of an ETF is worth around a tenth of an ounce of the metal.

Graham Tuckwell, Chairman of ETF Securities, said: "Our decision to launch this range of precious metals is twofold. Firstly, it comes in the wake of successful and increasing global demand for precious metals through ETCs which have seen steady growth over the last four years to over $16 billion.

"Secondly, we want to offer investors exposure to a broad range of precious metals which have historically been extremely difficult to access."

There were initial concerns that ETFs could bring up the price of platinum and palladium unnecessarily as demand for the metals for use in investing over practical applications grows.

However, the first day saw only 82 ounces of precious metals being bought by investors, although ETF Securities had expected a slow start to trading.

Source: Precious metal ETFs begin trade on London exchange

24/04/07

http://uk.reuters.com/article/goldMktRpt/idUKL246601120070424

Source: Platinum ETF launch fails to ignite market

24/04/07

http://www.miningmx.com/platinum/804111.htm

Source: ETF Securities creates world’s first exchange-traded precious metals platform backed by physical metal

20/04/07

http://www.etfsecurities.com/en/news/etfs_news_070420.asp

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