Strongest demand for gold funds and ETCs in Europe since March 2022

While demand for gold funds in Asia is at record levels – gold holdings there have risen by almost 34 per cent since the beginning of 2024 alone – gold ETFs/ETCs in Europe and gold funds in the US have long seen outflows rather than inflows. Things might be about to change this year: over the last three months, both regions have once again reported significant inflows, as new World Gold Council data shows. Despite the still negative balance for 2024, one thing is certain: the value of global gold holdings managed in gold funds and gold-backed ETCs has increased significantly this year.

Gold holdings managed in ETFs/ETCs appreciated 15 per cent year-to-date

In July 2024, inflows into gold-backed ETFs/ETCs in Europe were the highest since March 2022, with an increase of 16.6 tonnes. At the same time, US gold funds recorded inflows of 25.7 tonnes. Although net inflows in both regions are positive for the third time in a row and demand in Asia is at record levels, there is still a global deficit of 2.3 per cent for the first half of 2024. Despite this, the value of the existing gold holdings has increased by 15 per cent globally due to the strong performance of the precious metal. 

Europe: UK and Switzerland lead inflows  

In Switzerland, net inflows into gold funds increased by 5.2 tonnes to 332.4 tonnes in the first half of 2024, while in the UK they rose by 7.4 tonnes to 594.4 tonnes. Net inflows were lower in Eurozone countries: In France, for example, gold holdings increased by 2.4 tonnes and in Germany by 1.4 tonnes. However, the gold holdings of German ETCs are currently the fourth largest in the world at 321.9 tonnes. Only US gold funds are managing more extensive holdings, at 1,528.8 tonnes, as are British funds at 594.4 tonnes and Swiss funds at 322.4 tonnes. By comparison, in all of Asia, only 184.6 tonnes are managed in gold funds, despite this year’s record demand.