2020 has been a record year so far for gold-backed ETF inflows, according to the latest ETF Flows reports from the World Gold Council.In H1, global net inflows reached USD39.5 billion – topping the previous annual inflow record (USD23 billion) from 2016. North American funds accounted for 80 per cent of global net inflows in June, adding USD4.6 billion (4.3 per cent) in AUM.
Furthermore, European funds added another 0.8 per cent AUM (USD745.7 million), led by Swiss- and German-based funds.
Juan Carlos Artigas, Head of Research, World Gold Council, says: “Gold ETF investment demand shattered numerous records this year as investors sought safety from the economic turmoil created by COVID-19. To put it in context, inflows in the first half of 2020 significantly exceeded multi-decade record levels of net gold purchased by central banks in 2018 and 2019.
“We expect gold ETF investment demand to continue its strong momentum in H2 as concerns over COVID-19 economic impact and infection rates linger, gold price performance remains solid and accommodative monetary policy heightens risk-off sentiment.”
