Gold ETF Reserves
The World Gold Council announces that the capital net inflow into the “gold” ETF-funds has been recorded for the tenth consecutive month. We remind that ETF shares are physically backed by precious metals. Since the beginning of 2020, over $ 55 billion has been invested in such funds.
This year, investments in gold-backed ETFs are booming. According to the latest data, in September 2020, the capital net inflow of the funds shares amounted to + 200% ($ 4.6 billion, which corresponds to 68.1 tons of the “yellow” precious metal), compared to August. Nevertheless, the record-breaking July has not been beaten in September. In terms of capital inflows, September was 52% worse than July and worse than April was, when more than 176 tons of gold were purchased in reserves. In total, a little more than 3880 tons of the yellow precious metal are now concentrated in ETF reserves around the world.
The ETF industry largest representative in the world continues to be the American SPDR Gold Shares (GLD), which accounts for 33% of the market (1268.5 tons of gold). The iShares Gold Trust with 13% of the market (518.1 tons of gold in reserves) is located on the second place.
The German ETC-fund Xetra-Gold disposes of 222.4 tons of gold in its reserves, which puts it on the fifth place in the world ranking. Since the beginning of this 2020, investors have placed $ 969.8 million in its shares. In total, all German “gold” funds have been able to attract $ 1115.1 million, as a result of which, they were on the third place in terms of capital inflows after the United States and Great Britain.
It is worth recalling that the funds shares are backed by a physical precious metal. That is why they need to buy more gold constantly for the purpose of covering their securities. Investors shall have the right to demand the physical precious metal delivery to their address, but this happens only in exceptional cases.