ETF Securities’ gold holdings have soared to a record USD10.5bn after the gold price hit an all time high and inflows into its physically-backed gold exchange-traded commodities climbed nearly 600,000 ounces (USD746m) in four weeks, the largest monthly rise since August 2009.
Total settled gold holdings in ETF Securities physical gold ETCs stand at 8.4mn ounces (USD10.5bn), the largest gold ETF holdings in Europe and the second largest in the world.
The rapid deterioration of Eurozone sovereign fundamentals has renewed investor appetite for hard assets, particularly precious metals, as investors look to reduce their exposure to counterparty and currency depreciation risks.
The gold price has been hitting successive new highs in EUR, GBP and CHF but until 11 May had remained below its previous all-time high set in December 2009.
Trading volumes on ETF Securities’ ETC platform hit an all-time high of USD1.4bn.
Trading volumes in ETCs are up over 90 per cent over the past month. Seventy per cent of the rise is due to a surge in precious metals trading, with 50 per cent attributable to gold.
A wide range of ETCs saw turnover rise, ranging from platinum and palladium to livestock and industrial metals.
The rise appears part of a broader rise in market trading over the past few weeks and strong demand for gold exchange-traded funds.