2025 was a record year for gold funds and gold-backed ETCs. According to the World Gold Council’s recently published ‘Gold ETF Flows’ report, nearly all markets saw inflows far exceeding outflows, especially the US and China. Europe recorded net inflows of 10 percent at the end of 2025 after two years of slight outflows. Global gold trading rose sharply, with a positive effect on the liquidity of the precious metal. Already one of the most heavily traded asset classes globally, liquidity increased by 56 percent in 2025. Liquidity in gold funds and gold-backed ETCs trading gained heavily over the same period, up 138 percent.
Seven months of net inflows for US gold funds
US investors overtook China and India with net inflows of 27 percent, increasing gold holdings managed in ETFs by just under 446 tons. This is particularly remarkable given that Chinese ETFs have been recording extreme growth rates for years, including 116 percent in 2025. Gold holdings in Indian ETFs also tripled in 2025. Overall, gold-backed ETFs in Asia nearly doubled their gold holdings. Worldwide, 4,025 tons of gold are now managed in ETFs and ETCs, at a current value of US$558 billion. At the beginning of 2025, global gold holdings were valued at US$227 billion, i.e. at less than half.
Three main driving factors
US investor attention to gold funds and ETCs as a safe haven has been fueled since mid-2025 at the latest by threats of punitive tariffs, higher consumer prices, geopolitical tensions and significantly increased capital market volatility. In addition to this came the prolonged gold price rally, regarded as buying momentum by many investors, and the reduced appeal of US government bonds due to falling interest rates. How 2026 will turn out will largely depend on whether and how the numerous geopolitical and economic conflicts are resolved.