Swiss fundsters are turning away from gold and looking toward a new metal -- aluminum. With the rising supply and dropping cost of the element, the Credit Suisse Group
and commodity supplier Glencore International SA
are planning the launch of an ETF based on aluminum.
According to a Wall Street Journal article
, Glencore will physically back the new exchange-traded fund by buying large quantities of the metal, which should reduce the market supply and hopefully increase aluminum prices, which saw a seven year low in February.
Recently, similar funds backed in gold have become the biggest growth area for the precious metal and are out-performing jewelry and industrial-consumption growth markets.
Credit Suisse and Glencore haven't yet submitted the proper regulatory application for the fund, so the potential launch date is currently undetermined.
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