Contact us
CALL US NOW 1-888-GOLD-160

Gold ETFs Report Net Inflows of Gold for First Time in 10 Months

  by    0   0

For the first time in 10 months, gold flowed into ETFs in March with global gold ETFs recording net inflows of 32 tons, representing an increase of about $1.9 billion.

The price of gold was up 9% in March, fueled by demand for the yellow metal as the financial crisis unfolded. Overall, global gold ETF total assets under management (AUM) rose by 10% to $220 billion by the end of March. Inflows of metal into funds and the rising price of gold both contributed to the surging AUM.

Europe-based funds led gold inflows in March, adding 18 tons. UK funds accounted for the majority of inflows. According to the World Gold Council, poor stock market performance, systemic risk fears from the banking crisis, and the 6% increase in the price of gold in euros boosted European gold ETF demand.

North American funds charted net gold inflows of 12 tons in March. The WGC said, “The strength in the gold price improved gold ETFs’ attractiveness.”

Asian funds also reported net inflows of gold, adding about 3 tons in March. This represented a significant 2.9% increase. Chinese funds drove the increase due to poor equity performance and a surge in the local gold price, according to the World Gold Council.

Other regions, including Australia, reported net outflows of 1 ton.

Global gold market daily trading volume averaged $183 billion in March, surging by 25% month on month. It was the highest daily trading volume in a year and 39% above the 2022 average.

Inflows of gold into ETFs are significant in their effect on the world gold market, pushing overall demand higher.

There’s a difference between investing in gold-backed ETFs and physical gold. Learn more here.

ETFs are backed by physical gold held by the issuer and are traded on the market like stocks. They allow investors to play gold without having to buy full ounces of gold at spot price. Since their purchase is just a number in a computer, they can trade their investment into another stock or cash pretty much whenever they want, even multiple times on the same day. Many speculative investors appreciate this liquidity.

There are good reasons to invest in ETFs, but they aren’t a substitute for owning physical metal. In an overall investment strategy, SchiffGold recommends buying gold bullion first.

When considering gold-backed ETFs, you should always keep in mind that you don’t actually own the gold. Buying the most common ETFs does not entitle you to any actual amount of the precious metal.

Download SchiffGold's Gold vs GLD EFT's Free Guide

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Nearly One-Quarter of Central Banks Plan to Buy More Gold in Next 12 Months

Over the last several years, central banks globally have added gold to their reserves at a historically high rate. It doesn’t appear the buying spree will end anytime soon. According to the World Gold Council 2023 Central Bank Gold Reserve survey, 24% of central banks plan to add more gold to their reserves in the […]


Understanding Premiums

When we talk about the spot price of gold and silver, or the return on precious metals investments, some people are quick to remind me that I’m not factoring in premiums. What exactly are premiums?


Faced With New Round of Demonetization Indians Turn to Gold

The Indian central bank has announced another round of demonetization with a plan to withdraw 2,000-rupee notes from circulation. The announcement led to a big jump in gold bullion sales. The 2,000-rupee note will remain legal tender, but they will have to be deposited or exchanged for smaller denominations by Sept. 30.


Americans Rank Gold as Second-Best Long-Term Investment

Americans consider gold the second-best long-term investment option, according to a recent Gallup poll. Gold beat out stocks, bonds and savings accounts. The perception that gold is the best investment over the long term rose from 15% in 2022 to 26% in the 2023 poll, overtaking stocks at the number two spot.


Citigroup Projects $30 Silver in the Next 6 to 12 Months

Citigroup projects silver could rise to $30 an ounce in the next six months to a year. With silver currently in the $23.00 range, this represents a possible 30% return.


Comments are closed.

Call Now