April Gold ETF Inflows Strongest In More Than A Year As North American & European Demand Is Solid

The North American & European paper gold ETF market is seeing solid demand and purchasing of paper gold products. Here’s the details…

Editor’s Note: Sometimes it is important to look at the paper gold markets to gain an understanding of where sentiment is, and where sentiment may be going. The net inflows and strong demand in North America are indicative of improving sentiment towards gold, something we really need to see, even if paper gold ETF products are inferior at best, or total frauds at worst.

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Select excerpts from The World Gold Council’s ETF Data

Global gold-backed ETFs holdings added 72.2 tonnes(t) to 2,481t in April. This is the strongest month of net inflows in more than a year. Growth in global holdings was led by significant North American and European inflows and supported by a small increase in Asia.

ETF inflows were steady throughout the month even though the gold price retraced early gains, finishing April 1% down, after reaching an intra-day high of approximately US$1,360/oz mid-month.

Global stocks were mostly higher during the month, but many indices remain down or flat for the year. Market uncertainty stemming from missile strikes in Syria by the US, the UK and France, as well continued trade war rhetoric cast a cloud over the markets. At the same time, higher inflation expectations and a weaker US dollar through April offset the negative effect of higher interest rates on gold.

  • North American and European funds saw solid net inflows in April, growing by 44t (US$1.9bn, 3.4%) and 27t (US$1.2bn, 2.8%), respectively
  • Total fund holdings in Asia rose by 2.4t (US$100mn, 3.0%) to 80.2t
  • Funds in other regions had a marginal loss of 1t or 3.0% of assets

Year-to-date trends

  • North American funds continue to account for the overwhelming majority (54%) of gross global inflows, led by iShares Gold Trust (45t, US$1.9bn), SDPR® Gold Shares (33.7t, US$1.5bn). Elsewhere, Xtrackers Physical Gold (15.6t, US$0.7bn) and Bosera Gold (11.7t, US$0.5bn) have also captured significant flows
  • Holdings in Asian gold-backed ETFs remained in the red, down 1.4t so far this year – this has been primarily the result of Bosera migrating assets from its non-listed to its listed fund
  • Despite seeing little movement in assets during Q1 2018 (-1t, US$0.2bn), European holdings are now comfortably up since the end of December mostly as a result of 26t of inflows in April