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Global Gold-Backed ETF Holdings Decline By 23.7 Tonnes In September - WGC

Kitco News

(Kitco News) - Holdings in global gold-backed exchange-traded funds (ETFs) and similar products fell by 23.7 tonnes in September, equivalent to $932 million in outflows, the World Gold Council (WGC) said Thursday.

This was the fourth straight monthly decline, leaving total holdings at 2,329 tonnes. When combined with a 1.1% drop in the gold prices during September, gold ETF assets under management in U.S. dollars fell by 2.3%.

The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. They give investors exposure to the price of gold without taking on certain costs, such as assaying and storage.

ETFs posted net outflows of gold in all regions of the world during September, the Gold Council said. Holdings in European-based ETFs fell by 10.2 tonnes, while those based in Asia decreased by 6.5 tonnes. North American ETFs recorded outflows of 6.1 tonnes, while the rest of the world posted outflows amounting to a tonne.

“Flows in North American gold-backed ETFs were mixed, but ultimately negative; funds with lower management fees had robust inflows that were offset by outflows in SPDR Gold Shares (GLD),” the WGC said. “In our view, this highlights appetite for buy-and-hold investing versus selling pressure from short-term tactical positions.”

Gold Council data showed that SPDR Gold Shares posted outflows of 12.9 tonnes of gold. Meanwhile, iShares Gold Trust added 4.1 tonnes, U.K. Source Physical Gold added 3.6 tonnes and SPDR Gold MiniShares Trust added 3 tonnes.

For the year to date, the Gold Council reported outflows of 42.3 tonnes.

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