LONDON, June 19 (Reuters) - ETF Securities said on Friday the amount of metal it holds to back its ETFS Physical Palladium exchange-traded commodity (PHPD.L) rose 3,000 ounces or 1 percent to a new record on June 18.
The ETC now holds 315,572 ounces of palladium, against 312,542 ounces on Wednesday. Its holdings are up 10,000 ounces or 3.3 percent week-on-week.
ETCs issue securities backed by physical stocks of a given commodity. Buying precious metals to back ETCs and similar products has formed a major plank of demand in recent years.
The rise in the company's palladium ETC comes in the wake of hefty inflows into its ETFS Physical Platinum (PHPT.L) product. The ETC's holdings have climbed 16 percent or more than 46,000 ounces in the last two weeks.
"Platinum and palladium appear to be running as part of a broader rally in cyclical assets," Nicholas Brooks, head of research at ETF Securities, said.
"Macro conditions are continuing to surprise on the upside, and investors generally are looking at platinum and palladium as a play on the industrial cycle."
