Gold Investments Doubled on Exceptionally Strong ETF Inflows

SEATTLE (Scrap Monster): The Gold Demand Trends Q3 2019 report published by the World Gold Council (WGC) denotes sharp surge in gold investment during the quarter. The investment more than doubled, mainly on the back of exceptionally strong ETF inflows. Meantime, retail bar and coin demand declined during this period.

According to WGC, the investment demand totaled 408.6 tonnes in Q3 ‘19, surging higher by 110% upon comparison with Q3 ’19. The investment demand had totaled only 194.4 tonnes in Q3 2018.

The gold-backed ETF holdings soared to hit an all-time high of 2,855.3 tonnes in third quarter 2019. The investment in global products recorded a growth of 258.2 tonnes. This is the highest quarterly growth since Q1 2016, WGC report said. The value of global assets under management (AUM) surged to $136 billion.

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The holdings in North American-listed funds reported noted improvement, growing by 184.9 tonnes. Rising US dollar gold price and more accommodative monetary policy were the main catalysts for growth. The holdings in European-listed gold-backed ETFs recorded growth by 55.8 tonnes. The UK and german-listed funds led the way. The inflows into gold-backed ETFs in the rest of the world remained modest during Q3 this year.

The bar and coin demand nosedived to hit the lowest level in almost 11 years. The demand dropped by 50% from 298.2 tonnes to 150.3 tonnes over the year. The bar and coin demand in China and India dropped by 51% and 35% respectively. Also, Thailand witnessed net disinvestment in Q3 ’19.