Holdings of LME warrants backing exchange traded products (ETPs) listed on the London Stock Exchange by ETF Securities remain very small and are tending to decline rather than rise. Latest data shows that just 165 tonnes of tin is tied up in these products, down from a peak level of 405 tonnes reported from early February through to mid-May. Meanwhile the amount of copper held is now 2,322 tonnes (from a recent peak of 3,399 tonnes) and nickel holdings have been only 78 tonnes since February. New products covering aluminium, lead and zinc launched at the start of May have attracted minimal interest, with only a single lot of 25 tonnes each being held in the latter two metals.
Total holdings of commodity ETPs remain very substantial, with recent surveys by BlackRock and ETF Securities indicating that over US$200 billion is currently invested in nearly 800 different products, although around $2.6 billion was withdrawn in May as metals prices, especially of silver, fell. The great majority of these assets are related to gold and other precious metals.
