Investors in ETP commodity surge

gold-bars1Commodity exchange-traded products (ETPs) have seen a fifth week of inflows, with gold and silver prices rising, reports ETF Securities.

The situation in the Ukraine and China’s softer-than-expected economic data powered gold and silver ETPs, with investors favouring silver most probably as a leveraged play on the gold price.

Gold and silver are often seen as portfolio diversifiers when the economic outlook turns downwards.

Investors also took advantage of price dips in industrial metals to build long positions.

The ETFS Physical Silver, an exchange-traded commodity offered by ETF Securities, saw $38 million (€27 million) of inflows, the second highest in five months.

Long copper ETPs saw $19 million of inflows, the highest in 10 weeks as an 8.9% price drop was viewed as a buying opportunity.

Meanwhile, profit-taking saw $15.2m million leave long platinum ETPs.

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