ETF Securities expects significant new investment in its precious metal exchange traded funds this year, it has been announced.

The London-based firm, which launched a physically backed exchange traded fund (ETF) based on platinum, palladium, gold and silver on the London Stock Exchange (LSE) last year, expects to more than double the amount of money it manages through the funds this year.

The lion's share of this (80 per cent) is expected to be invested in precious metals and agriculture with the remainder going to energy, Hector McNeil, Head of Sales at the firm said.

He told Reuters: "We've had a tremendous start to the year. We're averaging $80-$90 million a week. If it keeps going like this we should see around $4/$5 billion growth this year."

Mr McNeil attributed the growth of interest in precious metals to a weak dollar, heightened fears over global security, rising inflationary pressures and turmoil in the financial markets as a result of the sub-prime mortgage crisis.

"Food inflation story has a long way to go, there is obviously a lot of impact from rising demand from alternative fuels and high energy costs," he explained.

The precious metal products have attracted investment of $1 billion since being launched in April last year.

Source:

ETF Securities seeing strong investment growth as appeal of commodities grows, 15/01/08
http://www.forbes.com/afxnewslimited/feeds/afx/2008/01/15/afx4531000.html

FACTBOX-Platinum, Palladium exchange traded funds, 18/05/07
http://uk.reuters.com/article/marketsNewsUS/idUKN1820941220070518

For more information on pgm ETF's please click link below
http://www.platinum.matthey.com/media_room/11642008903191.html

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