Gold ETFs Recorded Net Outflows in 2021, Says World Gold Council

SEATTLE (Scrap Monster): The World Gold Council (WGC), in its latest Gold Demand Trends Report FY 2021, said that gold ETFs reported net outflows of 173t during the previous year. Also, the outflows were heavily concentrated in Q1. The global holdings registered 5% decline to 3,570t by end-2021. The net outflows were compounded by the 4% gold price decline in 2021.

The losses in 2021 were mainly driven by North American funds. The funds never recovered from the significant outflows during the first quarter, which ultimately registered outflows of nearly 200t by the end of the previous year. The bulk of the outflows were from large U.S. funds, WGC noted.

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The European ETFs remained more or less stable. The funds witnessed sharp outflows early in 2021, but these funds turned positive for the rest of the year. The funds listed in Germany and France recorded inflows of 19t and 14t respectively. Meantime, UK funds saw net outflows of 28t in 2021.

The total holdings in Asian ETFs grew by more than one-fifth, adding 25t over the previous year. China accounted for more than 60% of these regional inflows. India-listed funds also contributed to the regional net inflows.