ETFS says US palladium fund breaks above $500 mln

LONDON, Oct 18 (BestGrowthStock) – ETF Securities said on Monday its
U.S.-listed palladium exchange-traded product broke above $500
million in assets under management, reflecting investor demand
for precious metals other than gold.

The fund (PALL.P: ) saw outstanding shares rise to a record
8.45 million shares last week, indicating investor appetite for
palladium, which is primarily used in catalytic converters to
cut vehicle emissions.

“The interest in both PALL and its sister product, PPLT
(Platinum) may indicate investors are looking to diversify their
portfolios to hold more precious metals than just gold,” said
William Rhind, strategic director for ETFS Marketing LLC, in a
press statement.

Spot palladium (XPD=: ) has risen by more than 40 percent so
far this year to around $580 an ounce, making it one of the top
performing commodities of 2010, driven largely by demand for
catalytic converters in gasoline-intensive car markets such as
China.

Investment in platinum group metals soared this year with
the launch of the U.S.-listed palladium and platinum ETPs.
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For a factbox of monthly holdings of the major ETPs backed
by physical precious metals, please see [ID:nLDE6901UD]
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(Reporting by Amanda Cooper)

ETFS says US palladium fund breaks above $500 mln