ETF Securities gold, silver ETC holdings rise

LONDON Mon Oct 13, 2008 9:38am EDT

LONDON Oct 13 (Reuters) - ETF Securities said on Monday the amount of metal it holds to back its gold and silver exchange traded commodities rose last week, but the holdings of its platinum and palladium-backed ETCs declined.

Bullion has benefited from its appeal as a haven from risk as the financial markets descended into turmoil in recent weeks. The same chaos has dented interest in the platinum group metals, however, which are primarily industrial.

Holdings of ETF Securities' Physical Gold ETC (PHAU.L) rose to 1.559 mln ounces in the week to October 12, up 2 percent from the previous week, while its Physical Silver (PHAG.L) product recorded inflows of 3 percent, the company said.

The amount of metal backing its Physical Platinum ETC (PHPT.L) dipped 4 percent week-on-week to 180,596 ounces. Its platinum holdings are now 56 percent off the record 407,000 ounces they reached in July.

Its Physical Palladium product (PHPD.L) also saw a small outflow. Its holdings now stand at 209,529 ounces, against 215,622 a week before.

ETF Securities issues securities backed by physical stocks of a metal. Buying of precious metals by exchange-traded funds has represented a significant source of demand in recent years.

(Reporting by Jan Harvey; Editing by Peter Blackburn)

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