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

Outflows of Gold from ETFs Slowed Significantly in November

  by    0   1

The flow of metal out of gold-backed ETFs slowed significantly in November, with North American ETFs charting gold inflows for the first time in five months.

A total of 9 tons of gold flowed out of ETFs globally, but total assets under management increased by 2% thanks to the rise in the price of gold.

Globally, ETFs hold 3,236 tons of gold valued at $212 billion as of Dec. 1.

North American-based ETFs recorded a 10.4-ton increase in their gold holdings. According to the World Gold Council, the fact that the Federal Reserve kept interest rates unchanged for the consecutive meeting brought forward investors’ expectations for the tightening cycle ending.

However, most of the support for both the price and ETF flows came from heightened geopolitical risk early in the month and investor positioning. The gold price rally ahead of the expiry date of major gold ETF options on 17 November also brought notable inflows.”

European funds continued to experience significant outflows of gold in November. European funds shed 20.1 tons of gold. It was the sixth straight month of outflows. European yields were at their decade-highs, creating headwinds for gold. Local currency strength against the dollar also suppressed the demand for gold in the eurozone.

Asian-based ETFs recorded a 0.6-ton increase in gold holdings, with inflows into Japanese and Indian funds outweighing outflows from Chinese ETFs.

To date, Asia is the only region with positive inflows for the year.

Global gold market trading volumes averaged $174 billion per day, an increase of 3% month-on-month. While the trading activity of gold ETFs dropped significantly (-26%) in November, the OTC market barely changed. Volumes of other exchange-traded products rose by 10% – contributed mainly by COMEX.

Net long positioning on COMEX rose further, totaling 658 tons at the end of November. That was a 23% increase month-on-month and 25% 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

Is a Weak Yen Feeding the Global Gold Bull?

The gold price has been surging, with unprecedented central bank demand gobbling up supply. It has been a force to behold — especially as US monetary policy has been relatively tight since 2022, and 10-year Treasury yields have rocketed up, which generally puts firm downward pressure on gold against USD. 


World Gold Council: “Blistering Central Bank Buying” Fuels Strong Gold Demand

Total gold demand hit an all-time high in 2023, according to a recent report released by the World Gold Council. Last week, the World Gold Council (WGC) released its Gold Demand Trends report, which tracks developments in the demand for and use of gold around the world. Excluding over-the-counter (OTC) trade, 2023 gold demand fell slightly from 2022 […]


VIX – The Calm Before the Storm

The VIX, often referred to as ‘Wall Street’s fear gauge,‘ is currently portraying a sense of calm among investors, registering well below the 20 level. 


Four States Consider Lifting Taxes on Precious Metals

Citizens of Georgia, Kentucky, Wisconsin, and Kansas may soon enjoy lower taxes on precious metals if recently introduced pro-metal bills are made law in 2024.


Inflation Persists As Fed Signals Rate Cuts

printing pressThe U.S. Bureau of Labor Statistics (BLS) recently released two inflation reports highlighting inflation figures for December 2023. Here’s what they showed: 


Comments are closed.

Call Now