Gold-backed ETCs in Europe up 41 tonnes in 2022

While holdings in gold-backed ETFs in the US and Canada have gone down 20.5 tonnes year-to date, gold holdings in ETCs in the EU and its neighbouring countries have recorded net inflows of 40.9 tonnes, according to the latest World Gold Council data. This development is not only due to the more tense geopolitical situation compared to overseas and the threat of stagflation, but also the fact that the precious metal has performed significantly better in euro than in US dollars so far in 2022. Over the year, gold holdings managed in ETFs in Asia have also seen outflows, amounting to 15.3 tonnes. In other regions, gold holdings increased slightly by 1.6 tonnes, especially in Turkey, a country currently struggling with an inflation rate of 83 per cent.

Globally, the balance for holdings in gold-backed ETFs/ETCs is also positive

Worldwide, outflows from gold-backed ETFs and ETCs amounting to 131.2 tonnes are offset by inflows of 137.9 tonnes. This is remarkable insofar as US-based gold-backed funds have seen higher outflows than inflows since the beginning of the year. Especially in the first half of the year, almost all other regions recorded inflows, bringing the global gold holdings managed in ETFs/ETCs to one of their all-time highest levels at 3,738.1 tonnes in mid-July 2022.

Increased outflows in almost all regions in second half of the year

After North America and Asia, more countries in the EU and its neighbouring countries also saw outflows from gold-backed ETCs – albeit much smaller volumes compared to overseas. They have, however, intensified in recent weeks: amounting to 4.7 tonnes in August, outflows were at 35.5 tonnes in September, of which 18.8 tonnes were from UK-based gold funds and ETCs alone.