Investors pile into gold ETFs

Gold bars. Credit: World Gold CouncilGold bars. Credit: World Gold Council

Gold-backed ETFs added 154 tonnes for net inflows of US$8.5 billion across all regions in May, boosting global holdings to a new all-time high of 3,510 tonnes, according to new data from the World Gold Council.

Year-to-date, inflows of 623 tonnes, representing a value of US$33.7 billion, now exceed what was initially the highest level of annual inflows of 591 tonnes in 2009.

During May, North American ETFs increased holdings by 102 tonnes, or US$5.6 billion, with SPDR Gold Shares leading all global inflows, adding 67 tonnes (US$3.7 billion), followed by iShares Gold Trust, which added 20 tonnes (US$1.1 billion).

European funds increased their holdings by 45 tonnes, or US$2.4 billion, led by U.K.-based iShares Physical, which added 23.3 tonnes (US$1.3 billion). The balance of gold inflows occurred in Asia and other regions.

The World Gold Council said assets in global gold-backed ETFs have nearly doubled over the past 12 months.

The Council also noted that U.K.-based gold funds continue to take regional and global market share, now representing 48% of European assets and 21% of global assets.

In the U.S., low-cost gold-backed ETFs have doubled their collective holdings in the past year to 99 tonnes, roughly the size of all Asian-based funds.

— This news item first appeared in MINING.com.

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