Inflows into gold ETFs rise for a sixth straight month

Globally, gold-backed ETFs (gold ETFs) added 170 t – or net inflows of $9.3-billion – in April, boosting holdings to a new all-time high of 3 355 t, data shows.

Assets under management (AUM) also reached a new record high of $184-billion as gold in dollar terms moved higher by 5.8%, the World Gold Council reports.

Inflows have been strong and consistent in recent months, but not unprecedented.

Rolling 12-month inflows of 879 t just surpassed those of 2009 and 2016, while rolling six-month inflows were less than two-thirds of the 457 t of inflows in the comparable time periods of 2009 and 2016.

REGIONAL FLOWS

North American funds had inflows of 144 t ($7.8-billion, 8.3% AUM) in April.

Holdings in European funds increased by 20 t ($1.1-billion, 1.4% AUM). Funds listed in Asia added 2.9 t ($206-million, 3.9% AUM). Other regions had inflows of 3.3 t ($172-million, 5.8% AUM).

LONG-TERM TRENDS

Assets in global gold-backed ETFs grew during 11 of the past 12 months, adding 80% to total AUM.

Following the April inflows, both holdings and assets of gold-backed ETFs continue to reach all-time highs.

UK-based gold funds continue to take regional and global market share, now representing 47% of European assets and 21% of global assets.

Low-cost gold-backed ETFs in the US have seen positive flows for 22 of the past 23 months and have increased their collective assets to 91 t, which amounts to roughly the holdings of all Asia-based funds.