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ETF Gold Holdings Rise By 197.5 Tonnes In 2017 - WGC

Kitco News

(Kitco News) - Gold held by global exchange-traded funds increased by 197.5 tonnes in 2017, a gain of 8.4%, said the World Gold Council in its monthly report on Tuesday.

The rise last year was largely driven by European ETFs, which represented 75% of all total inflows by adding 148.6 tonnes of gold ($5.8 billion) to their holdings.

In turn, the European market was dominated by Germany. “German-listed ETFs accounted for 35% of global net inflows in 2017,” the WGC said in its report.

Meanwhile, in the North American market, iShares Gold Trust and SPDR Gold Shares collectively accumulated 62.6 tonnes in 2017, representing 28% of global net inflows.

The report added that currency-hedged, gold-backed ETFs had “the strongest growth during 2017.”

The top three individual fund inflows of 2017 were Xetra-Gold with an additional 58 tonnes, iShares Gold Trust with 47.3 tonnes, and Source Physical Gold ETC with 27.2 tonnes.

Gold ETFs generally trade like a stock but track the price of the commodity, with metal put into storage to back the shares.

The year wrapped up on a good footing, with global gold-backed ETFs rising by 5.3 tonnes ($101 million) in December, which pushed the total to 2,363 tonnes, the WGC added.

The December inflows were spread across Europe, North America and Asia, according to the report.

Some of the December highlights included Xetra-Gold in Europe adding 4.7 tonnes ($141 million), North American iShares Gold Trust adding 2.1 tonnes ($88 million), China’s Huaan Yifu Gold ETF adding 0.6 tonne ($24 million), North American Source Physical Gold ETC losing 3.6 tonnes ($135 million), and SPDR Gold Shares losing 2 tonnes ($67 million).

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