Since the launch of the very first gold-backed ETF in 2003, the Australian Gold Bullion Securities ETF, and the US SPDR Gold Shares ETF in 2004, which remains the largest gold fund in terms of volume to date, gold holdings under management have seen an almost continuous increase. In 2007, the euro-denominated, fully gold-backed ETC Xetra-Gold was introduced in the Eurozone. Recent World Gold Council data shows that global gold holdings in ETFs and gold-backed ETCs broke through the 4,000-ton barrier for the first time at the end of 2025 and reached a provisional high of 4,156 tons in March 2026.
Gold demand in the jewelry sector declines
Central banks’ appetite for gold continues into 2026, with demand in the first quarter of 2026 at 243.7 tons, even exceeding that of the prior-year quarter. Meanwhile, the jewelry industry in Asia, in particular, is experiencing a massive slump. In the first quarter of 2026, demand was down by just under 23 percent year-on-year, a situation which is unlikely to change significantly in the second quarter. This is due to the strong gold price and the increase in import duties on gold from 6 to 15 percent in India, one of the most important markets for jewelry production.
Asian gold holdings in ETFs up more than 11-fold since 2016
It is not only the Chinese and Indian central banks that are massively expanding their gold reserves – institutional and retail investors are also driving a rapid increase of the gold holdings managed by ETFs. However, the current level of 528 tons (as of 22 May 2026) compare rather modestly to the world’s largest gold funds in the US, with total holdings of 2,084 tons, and 1,442 tons in Europe. Measured solely by growth rate, however, Asia is likely to remain in the lead.