iShares, the exchange-traded product provider which is part of the US asset manager BlackRock, yesterday launched its first physically-backed gold, silver, platinum and palladium exchange-traded commodities on the London Stock Exchange.

The firm said it has seen high demand for commodities-related exchange-traded products as bullish sentiment over commodities of all kinds grows. Much of this increased focus on commodities centres on the growth stories of China and India, but investors are arguably now also increasingly drawn to alternatives due to the gyrations of the equities markets and the inflationary risks now associated with fixed income.

iShares is keen to emphasise the fact that the new ETCs are physically-backed, with the underlying metal holdings backing the debt securities being stored in the secure vaults of the custodian, JP Morgan, in London. To give investors extra reassurance, each of these bars has a unique serial number which is updated daily and published on iShares’ website alongside other security details, the firm said.

The rise of physically-backed precious metals exchange-traded products has been marked in recent times, particularly those investing in gold, as investors demand heightened levels of transparency in their investments. Of course, the more tangible forms of investments also have a potent pychological draw which has been heightened since the financial crisis.