Do Europeans Love Gold More Than North Americans? - WGC Data
(Kitco News) - Global holdings in gold-backed exchange-traded funds were up in October, but only thanks to European investors and not their counterparts in North America, according to the latest data released by the World Gold Council.
In its monthly report, the WGC said that global gold-backed ETF flows were “flat” last month with inflows mostly coming from Europe. “Outflows in North America mostly offset inflows in Europe,” added the report, which was released on Monday.
According to the report, global gold funds added 3.3 tonnes last month, or more than $221 million in assets under management (AUM). Holdings now stand at 2,347.6 tonnes year to date.
“Europe led inflows in October, as investors added 11.2t (+$523mn, 1.3% AUM) of gold through funds listed in the region. There were outflows in North America of -8.0t (-$305mn, -0.59% AUM), reversing some of its September gains.”
Even on an annual basis, Europeans accounted for roughly 70% of all inflows so far this year.
“European funds continue to lead inflows accounting for nearly 70% of all inflows at 127.4t (+$5.1bn; +12.8% AUM) in 2017,” the WGC noted.
Global gold-backed ETF holdings are still up this year, the data showed, with funds adding 182.2 tonnes to date. “This represents an increase of 8% of global AUM from December 2016.”
Digging deeper, the report also showed that the world’s largest gold-backed ETF – SPDR Gold Shares (GLD) – led outflows globally, with 13.9 tonnes coming out of the fund in North America last month.
WGC’s latest report comes out shortly after the firm released its Q3 Gold Demand Trends report, which showed that global gold demand saw its weakest third-quarter performance in eight years, driven in part from lower ETF inflows.