Make Kitco Your Homepage

Gold-backed ETFs are just 2% away from an all-time high - WGC

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

Gold-backed ETFs are just 2% away from an all-time high — WGC

(Kitco News) - August saw a third straight month of gains in gold-backed ETFs and similar products after hitting a six-year high in July, said the World Gold Council (WGC).

Global gold-backed ETFs reported a net inflow of $6 billion last month as total holdings rose by 122 tonnes to 2,733 tonnes, the WGC said in a press release on Thursday.

The new level reached in August was just 2% or 59 tonnes away from an all-time high seen in late 2012 when gold prices were trading at $1,665 an ounce, the WGC pointed out. “Total holdings are 59t tonnes or 2% away from all-time highs of 2,791t, which occurred in late 2012 when the price of gold was 9% higher,” the press release said.

North American funds saw the most demand as inflows increased by 78 tonnes or 6% in August. European funds saw inflows of 33 tonnes, while Asian funds were up by nine tonnes.

The fund that saw the most interest last month was the North American SPDR Gold Shares with additional holdings of 55 tonnes. The second most popular fund was the iShares Gold Trust, which added 18 tonnes.

From the European-listed funds, the Invesco Physical Gold, which added 9.3 tonnes and iShares Physical Gold, which also added 9.3 tonnes were the top choices. Meanwhile, the Huaan Yifu fund was the most popular one in Asia, adding 5.4 tonnes.

Overall, global gold-backed ETFs are up 10.4% or 292 tonnes year-to-date, with interest in North American funds topping European participation.

“Strong inflows in North American-listed funds over the past three months have increased the regions’ contribution to 2019 growth – as of end August, North America added 152t compared to 139t in Europe,” the WGC said.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.