Gold stocks ETFs to new all-time high

Gold ETFs once again added precious metal to their stocks in the month of August added. Last month, the total gold stock rose by 39 tonnes to a new record of 3,824 tonnes. The inflow in August was less than in previous months, when the gold price was still in a strong upward trend. At the beginning of August, the gold price reached a record of $2,067 per troy ounce, after which it fell back below $2,000. However, the price remained above the old record of $1,920 per troy ounce.

In August, it was mainly American investors who got into gold, as the stocks of European gold ETFs actually fell. Due to the stronger euro and a more positive sentiment on the stock market, more European investors sold their positions in gold. This is partly offset by increased demand from Asia. Due to the decline in the Gold price after the record set in early August, more Asian investors dared to buy gold again. Gold ETFs serving the Asian market added 7 tonnes to their holdings in August, while stocks of European gold ETFs fell by nearly 11 tonnes.

Record year for gold ETFs

The price of gold has been rising for more than a year now, but the demand for the precious metal only really took off after the corona crisis. This is also reflected in the graphs below. Investors have been seeking refuge in safe havens since the crisis, with gold benefiting from extremely low interest rates and fears of currency depreciation. That doesn't just cause a run on Gold bars and Gold Coins, but also for a flight to gold ETFs.

The popularity of these investment vehicles is evidenced by the fact that ETFs added 937 tons to their stocks this year. This is even more than after the financial crisis of 2008 and during Brexit in 2016. With four months to go, this looks set to be a record year for the gold market. This is also reflected in the physical gold trade, where the demand for coins and bars is much higher than in previous years.

Gold stocks ETFs to record high

Gold ETFs have been adding gold to stocks for seven months in a row

Record year for gold ETFs with total inflows of 937 tonnes

This contribution was made from Geotrendlines