WGC: Gold ETF Holdings Tonnage and Value Touched Fresh Record

SEATTLE (Scrap Monster): The institutional and retail investors across the globe continue to invest in gold-backed exchange traded funds and similar products, said the latest market report published by the World Gold Council (WGC). The cost efficiency, transparency and liquidity of these products have resulted in increased popularity of gold ETFs among investors over other products including bars and coins.

According to WGC, the total holdings in 83 active gold ETFs tracked by the Council totalled 3,880 tonnes through September this year. The assets under management (AUM) amounted to $235.4 billion. The tonnage as well as the value of gold ETF holdings touched new record during the initial nine-month period of 2020.

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The gold ETFs listed in North America witnessed continued expansion. The funds in other regions of the world too recorded dramatic growth. For instance, the share of European funds in global gold-ETF assets surged higher from 16% in 2005 to as high as 41% in September this year. Also, the total gold holdings in Asian gold ETFs posted remarkable growth from 1 tonne in March 2007 to 121 tonnes in September 2020. Incidentally, the region added seven new funds this year alone.

The evolution of gold ETFs have contributed to major advancement of the broader gold market, WGC noted.