Gold-backed ETF Holdings Hit All-Time High in 2020

SEATTLE (Scrap Monster): The inflows into gold-backed ETFs surged across all regions in 2020, said the latest report published by the World Gold Council (WGC). The record inflows during the year took the total holdings to all-time record.

The annual net inflows into gold-backed ETFs were valued at $47.9 billion. The tonnage of inflows totalled 877 tonnes, higher by nearly 231 tonnes, upon comparison with the inflows of 646 tonnes in 2019. Incidentally, the total gold-backed ETF holdings touched all-time peak of 3,752 tonnes. The assets under management (AUM) witnessed strong growth across all regions, WGC report noted.

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According to WGC, there were sizable outflows during the month of November. However, the outflows slowed considerably during the last month of the previous year. Overall, Q4 witnessed net outflows of 130 tonnes. It must be noted that the assets under management had witnessed addition of 1,007 tonnes during the initial three quarters.

In Q4 alone, the funds listed in North America reported outflow of 86 tonnes, whereas funds in Europe posted a loss of 35 tonnes. The Asian funds saw outflow of 4.7 tonnes, while cumulative outflows from funds listed in other regions in the world totalled 4.4 tonnes.

The outflows in the month of December were largely driven by North American and European funds, which lost 1.2% and 0.8% of their holdings respectively. The total outflows in December 2020 were 40 tonnes, said WGC report.