Mumbai, Jan 13 (IANS): Change Traded Funds (ETF) backed by gold witnessed a document annual influx of 877 tonnes in 2020, confirmed a World Gold Council (WGC) report.
The earlier document influx was reported in 2009 when the influx stood at 646 tonnes of property.
“Globally, gold ETFs had document annual web inflows of $47.9bn, or 877 tonnes (t), collectively growing their gold holdings by over a 3rd, reaching all-time highs in tonnage (3,752t),” it mentioned.
The WGC mentioned that every one areas registered important progress in property below administration (AUM), greater than the overseas reserve holdings of any central banks aside from the US.
Whereas the ultra-low rate of interest setting drove inflows in January and February, the worldwide unfold and severity of the Covid-19 pandemic from March onwards boosted curiosity in gold, it famous.
The heightened threat setting, fiscal and financial responses to the financial influence of the pandemic, and gold worth momentum continued to drive inflows properly into second half of the yr. The tempo of inflows slowed after the gold worth hit a brand new document excessive, above $2,000 per ounce in early August, earlier than correcting to the $1,900 per ounce degree.
Additional, the energy in demand for gold ETFs was underscored in comparison towards different types of bodily gold funding. In response to the pandemic, demand for bars and cash was blended. Consequently, over the primary three quarters of 2020, gold ETFs accounted for nearly two-thirds of whole funding demand, it mentioned.
That is considerably greater than any earlier full yr. Gold ETF demand was additionally equal to 1 / 4 of the common annual gold mine manufacturing over the previous 5 years, mentioned the WGC report.
On the outlook for 2021, it mentioned: “Lots of the similar drivers of gold demand ought to proceed, corresponding to decrease charges and improved alternative prices, fiscal stimulus, lofty inventory valuations, and the financial results of Covid-19.”