Gold ETFs/ETCs: Europe and Asia lead in terms of inflows

The latest data reported by the World Gold Council shows that European and Asian gold funds as well as gold-backed ETCs led global inflows in May 2024. While this comes as no surprise in the case of Asian gold ETFs – after all, the region has been seeing uninterrupted inflows for 15 months –  European gold ETFs/ETCs had predominantly recorded outflows for almost a year prior. In May 2024, however, inflows totalled US$287 million, while UK gold funds saw outflows of over US$150 million over the same period.

China leads the way with 41 per cent growth this year

Asia has long been the main driver of growth in global gold holdings managed in funds and ETCs, and 2024 has thus far been no exception: Asian gold ETFs are up 24 per cent, with Chinese gold ETFs growing the fastest at 41 per cent year-to-date. In Europe, inflows have been much more modest at 0.4 per cent, mainly in countries where central banks have announced a turnaround in interest rates, such as the Eurozone and Switzerland. The divergence of inflows in Europe and Asia is partly due to pent-up demand, especially in China.

In Europe, almost 7.5 times as much gold is under management in ETFs/ETCs as in Asia

After the US with 1,573.1 tonnes of gold, Europe comes in second worldwide when it comes to gold funds and gold-backed ETCs, with a volume of 1,284.8 tonnes. In Asia, and particularly in China, where gold funds were introduced much later than in western industrialised countries, the comparatively small amount of 172.1 tonnes is currently under management. Globally, gold holdings managed in ETFs/ETCs now amount to 3,087.9 tonnes – a large amount despite the outflows since the previous record of 3,884.4 tonnes in April 2022: ten years ago, in May 2014, global holdings totalled a mere 1,482.8 tonnes.