Page 15 - Bullion World Issue 1 May 2021

4000 Gold ETF Holdings
3500 Bullion World | Issue 01 | May 2021
North America Europe Asia Other
3000
The surge was driven by the COVID-19 They were also some 39% higher than
2500 outbreak, which saw the global the previous yearly record in 2009. By
“ Tonnes Total net inflows economy plunge into the worst downturn the end of 2020, global ETF holdings
2000
for the year were
since the Great Depression. This
stood at 3,740 tonnes, approximately
1500
estimated at under prompted governments to announce US$213 billion in assets under
1000
management; and while down from the
unprecedented stimulus measures,
900 tonnes and pushing interest rates into more negative record level seen in November, they were
500
valued at US$51 territories, all of which boosted gold’s still over 30% above the end-2019 level.
0
billion, which safe-haven appeal. Furthermore, the Looking at this year, while ETF buying
logistical issues, caused by the virus
resumed at a small scale in January, net
represented the outbreak, triggered the disconnect outflows witnessed over the next few
highest ever annual between the COMEX gold futures market weeks pushed global holdings to a near
Source: Various ETF sources; Metals Research, Refinitiv, an LSEG business
gain recorded since and the OTC market in London. This ten-month low of around 3,440 tonnes
resulted in higher premiums on futures
by mid-March, which represented net
the inception of gold contracts compared to the OTC price outflows of nearly 160 tonnes year-

ETFs in 2003. ” and increased cost of ownership, thereby to-date. While it may still be too early
encouraging some investors to switch to to make conclusions, this is clearly
not the same start to the year that we
OTC holdings and ETF buying.
Monthly Change in Gold ETF Holdings
250 2200

200 2000

150
1800

Tonnes 100 1600 US$/oz

50
1400
0

-50 1200

-100 1000

North America Europe Asia Other Gold Price, RHS
Source: Various ETFs; Metals Research, Refinitiv, an LSEG business

Having said that, the growing optimism experienced in 2020, and it remains
around the approval of COVID-19 dubious whether gold ETFs this year
vaccines and prospects for a long- would be able to get anywhere close to
awaited return to normal saw some the spectacular performance witnessed
investors reduce their gold exposure last year.
towards the end of the year. After 12
months of uninterrupted gains, gold Saida Litosh has been covering the metals
ETFs experienced selling in the final two markets since she joined the GFMS precious
months of 2020, equivalent to just under metals research team in 2011, focusing on
170 tonnes of gold. Net outflows were investment and fabrication demand in Europe
and playing a key role in covering precious
driven primarily by selling in Europe and metals research in Russia. In 2016, Saida
North America, where investors reduced joined Thomson Reuters Oil Research team,
their holdings by 90 tonnes and 86 where her primary focus was analysis of
tonnes, respectively; while holdings in crude, fuel oil and key refined product flows
other regions increased slightly, by just for Europe, Russia and Africa. She rejoined
Refinitiv Metals team in late 2017 to head up
under seven tonnes. precious metals demand research for Europe,
in addition to leading gold analysis and
economic forecasts. Saida holds a Master’s
degree in Economics from the London School
of Economics.
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