Assets managed in Gold-backed ETFs/ETCs at all-time high

The latest World Gold Council data shows that assets under management (AUM) in gold funds and ETCs with physical collateralisation in the form of gold bars are currently at just under US$271 billion – an absolute record high achieved due to recovering inflows across many regions in the second half of 2024, but above all due to a steadily rising gold price. By the end of 2024, the precious metal had reached a new all-time dollar high no fewer than 40 times. December inflows in Gold-ETFs/-ETCs outweighed outflows for the first time in five years with an increase in AUM of US$778 million.

Asian gold funds led net inflows in 2024

Gold holdings managed in Asian ETFs increased by 56.8 per cent to 216.4 tonnes in the last twelve months. Inflows were dominated by Chinese gold funds, whose holdings rose by 86.7 per cent. Indian gold-backed ETFs increased by 35.7 per cent over the course of the year, Japanese gold funds by 32 per cent. The holdings of Malaysian gold-backed ETFs saw an even more pronounced increase by 45.1 per cent, which, however, did not amount to more than 100 kg of gold in total. Compared to North American and numerous European gold-backed ETFs/ETCs, the gold holdings of Asian ETFs are generally rather modest.

Growth in North American gold-backed ETFs in second half of 2024 made up for outflows of first half

Gold funds in the US and Canada recorded more outflows than inflows in the first six months of 2024, yet the trend clearly turned to net inflows from July onwards, before very slight outflows reccurred in December. 

In Europe, we saw net inflows from May to August 2024, but outflows or a standstill (as in December) in all other months. Over the year, European gold holdings as collateral for ETCs decreased by 7.1 per cent. Outflows were dominated by German, Swiss and British ETCs and gold funds, respectively. However, these countries have by far the largest gold holdings in Europe. German gold ETCs, for example, currently hold 309.1 tonnes. By comparison, French gold ETCs currently hold 65.1 tonnes, Irish ETCs 11.4 tonnes and Italian ETCs only hold 5.0 tonnes of gold.