Gold holdings 2021: Strongest inflows in Chinese ETFs, French and German ETCs

Inflows into European gold ETFs and ETCs in January more than compensated for outflows from US gold funds, thus ensuring the first net growth in the global gold holdings under management since October 2020. Since then, US outflows have been so massive at 111.9 tonnes that global gold holdings have decreased by 2.9 per cent year-to date, as reported by the World Gold Council on 4 March 2021. This is due to the strong stock markets, the progress of the US vaccination campaign and the US$1.9 trillion economic stimulus package just passed in Congress, causing great optimism among US investors.

Significant net inflows into Asian gold ETFs

In view of the first pullback of the CSI 300 Index since September 2020, investors, particularly in China, have been prompted by the recent gold price decline to revert back to investing more heavily into the precious metal. In addition, Indian and Japanese funds have grown significantly. Overall, gold holdings under management in Asian ETFs increased by 11.5 per cent year-to date, and in China by 15.5 per cent.

Mixed picture in Europe: British outflows vs. inflows in the eurozone

With outflows of 25.9 tonnes year-to date, British gold funds dominate the current situation in Europe, which net flows into gold ETCs in the largest eurozone markets of Germany, France and Italy totalling 4.1 tonnes could not compensate. Percentage-wise, gold funds in Turkey saw the strongest growth, with a 24.3 per cent increase in gold holdings under management.

The top ten gold ETFs and ETCs with the highest inflows year-to date include three Chinese funds and two German ETCs, including Xetra-Gold, which, with an increase of 4.5 tonnes, ranked third behind the US SPDR Gold MiniShares Trust and the Chinese Huaan Yifu Gold ETF.