Gold ETF Net Inflows Surged 4.3%

SEATTLE (Scrap Monster): The latest report published by the World Gold Council (WGC) signals ongoing growth in gold-backed ETF holdings in the month of May this year. The inflows during the initial five months of the current year surpassed the exceeded the yearly inflows of any calendar year till date.

The worldwide gold ETF net flows amounted to $8.5 billion in May this year, which is significantly higher by 4.3% compared with the same month a year before. The net holdings saw an addition of 154 tonnes during the month. The global gold holdings in ETFs touched an all-time high of 3,510 tonnes. The year-to-date inflows of 623 tonnes exceeded the highest annual imports of 591 tonnes in 2009. Over the past one year, the assets in global gold-backed ETFs have nearly doubled.

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The robust inflow coupled with high gold prices lifted the assets under management (AUM) in gold ETFs to new record high of $195 billion, WGC data said.

Regionwise, North America reported the strongest inflows. The regional funds added 102 tonnes, thus taking the total holdings to 1,815 tonnes. The European funds, led by UK-based funds added 45 tonnes. The Asian funds saw an addition of 4.4 tonnes, whereas the funds in other regions grew by 2.6 tonnes.

Individually, SPDR Gold Shares and iShares Gold Trust accounted for 57% of all global inflows in May, adding 67 tonnes and 20 tonnes respectively.