Commodity ETPs attract cash for fifth week running

Commodity exchange traded products have seen a fifth consecutive week of inflows, according to ETF Securities.

ETF Securities sees the $57.3m of commodity inflows as a result of investors looking to diversify their portfolios as China produces weak economic data and the Ukraine crisis remains unresolved.

Both gold and silver prices have gained over recent weeks, with investors favouring silver as it has traditionally outperformed the yellow metal when both are rising. 

The ETFS Physical Silver ETP saw $38m of inflows over the week to 13 March, the second highest week of inflows in five months. 

But long gold ETPs saw $67m of outflows, with some investors looking to take profits on recent price gains.

Today’s London Gold Fixing shows the price of gold as $1,379 per ounce, up from $1,326.50 on 28 February. 

Meanwhile, the silver price has recovered sharply from $20.72 per ounce on 11 March to $21.42 per ounce today. 

Despite strong gains in silver ETPs, the precious metals subsector as a whole saw net outflows of $44.6m last week as investors exited gold, platinum and palladium. 

Additionally, ETF Securities argues investors are looking to take advantage of industrial metal dips and build long positions.

Long copper ETPs saw $19m of inflows, the highest in 10 weeks, after a corporate bond default helped trigger fears in the market about the release of copper stockpiles. 

As a result, this produced an 8.9 per cent price drop and therefore a buying opportunity.

Agricultural ETPs saw net inflows of $1.2m over the week, driven by strong interest in corn. However, outflows were seen in coffee, wheat and sugar.