Wednesday, January 27, 2021
News

Gold ETFs log record 877 tn inflow in 2020: WGC

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

Mumbai | Thursday, 2021 2:15:06 AM IST
Exchange Traded Funds (ETF) backed by gold witnessed a record annual inflow of 877 tonnes in 2020, showed a World Gold Council (WGC) report.

The previous record inflow was reported in 2009 when the inflow stood at 646 tonnes of assets.

"Globally, gold ETFs had record annual net inflows of $47.9bn, or 877 tonnes (t), collectively increasing their gold holdings by over a third, reaching all-time highs in tonnage (3,752t)," it said.

The WGC said that all regions registered significant growth in assets under management (AUM), more than the foreign reserve holdings of any central banks except for the US.

While the ultra-low interest rate environment drove inflows in January and February, the global spread and severity of the Covid-19 pandemic from March onwards boosted interest in gold, it noted.

The heightened risk environment, fiscal and monetary responses to the economic impact of the pandemic, and gold price momentum continued to drive inflows well into second half of the year. The pace of inflows slowed after the gold price hit a new record high, above $2,000 per ounce in early August, before correcting to the $1,900 per ounce level.

Further, the strength in demand for gold ETFs was underscored when compared against other forms of physical gold investment. In response to the pandemic, demand for bars and coins was mixed. As a result, over the first three quarters of 2020, gold ETFs accounted for almost two-thirds of total investment demand, it said.

This is significantly higher than any previous full year. Gold ETF demand was also equivalent to a quarter of the average annual gold mine production over the past five years, said the WGC report.

On the outlook for 2021, it said: "Many of the same drivers of gold demand should continue, such as lower rates and improved opportunity costs, fiscal stimulus, lofty stock valuations, and the economic effects of Covid-19."

--IANS rrb/sn/vd

( 328 Words)

2021-01-13-20:12:05 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
INDIA WORLD ASIA
64% believe climate change a global emer...
Kerala reports 6,923 new Covid-19 cases...
BKU accuses Delhi Police of negligence, ...
With travel curbs lifted, Russia keen on...
Barricading, tear gassing by Delhi Polic...
200M students, educators rely on our edu...
More...    
 
 Top Stories
New Zealand China Council welcomes ... 
Budget21-22 must set aside threat f... 
Pak FM dares India on Kashmir dialo... 
WHO lauds China for submitting Covi... 
Yogi govt to prepare health cards i... 
Offline teaching for Classes 9, 11 ... 
Shreyas Talpade enjoys birthday wit... 
Katrina reveals how she wants to li...