Gold ETFs Posted Record Inflows in First Quarter 2020

SEATTLE (Scrap Monster): The ETF monthly commentary published by the World Gold Council (WGC) states that global gold-backed exchange-traded funds (ETFs) witnessed record inflow during the initial three months of the current year.

According to the report, global gold-backed ETFs added 298 tonnes across all regions in Q1 2020. This is the largest tonnage addition since 2016. The gold ETFs had added 659 tonnes during the entire year 2019. The net inflows of $23 billion during the quarter were the highest ever in absolute US dollar terms. A total of 151 tonnes were added in the month of March alone. The gold ETF holdings across all regions currently stands at an all-time high of 3,185 tonnes, WGC noted.

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All regions reported strong inflows in March this year. The regional inflows were led by European funds, which saw addition of 84 tonnes during the initial quarter of the year. The North American funds added 57 tonnes. The Asian funds, especially in China, reported robust inflows. The net inflows by the region totalled 4.9 tonnes. The funds in other regions added 4.7 tonnes.

WGC noted that ongoing market uncertainty and the improved opportunity cost of holding gold versus yields will continue to drive gold’s investment demand in the years to come.