ETF precious metals platform declared Shariah compliant

The physically backed precious metals exchange traded commodities (ETCs) platform of ETF Securities has been found to be Shariah compliant.

The Shariah compliant ETCs were sought in response to the rising global demand for ETCs from the Middle East, North Africa and Asia. The ETCs are traded on five exchanges in Europe.

All of the physical precious metal ETCs are backed by allocated metal.

The five physical ETCs that have been named Shariah compliant are in the ETFS Physical Platinum LSE code, ETFS Physical Palladium LSE code, ETFS Physical Silver LSE code PHAG, ETFS Physical Gold LSE code: PHAU and the ETFS Physical PM Basket LSE code: PHPM.

Separately, ETF Securities has appointed ex- Goldman Sachs trader Sameer Meralli as head of sales for Middle East and North Africa to deal with the new development.

“This is an exciting new development for Islamic investors to gain access to our entire physical precious metals platform which includes gold, silver, palladium and platinum,” said Hector McNeil, managing partner at ETF Securities.

“This development recognises the rising importance of Islamic investors and their appetite for ETCs. Shariah compliance further extends the global reach of ETCs which are now traded on five exchanges in three currencies,” he said.