ETFs Amass Record 1,003 Tonnes of Gold
in Year to End September – WGC
(Reuters) – Gold-backed exchange traded funds (ETFs) added more than 1,000 tonnes of bullion worth $60 billion at current prices to their stockpile in the first nine months of 2020, driving a sizzling price rally, the World Gold Council (WGC) said.
ETFs, which store gold for investors, added 68.1 tonnes of gold to their hoard in September, taking their purchases so far in 2020 to 1,003 tonnes, the WGC said. The hoarding far exceeds any previous full year – though outflows may yet be seen before year-end – and takes the total amount of gold held by more than 120 funds tracked by the WGC to 3,880 tonnes, worth $235 billion. Investors looking for a safe store of value amid the pandemic propelled gold prices from around $1,500 an ounce at the start of the year to a record high of $2,072.50 in early August.
But prices have since slipped to around $1,900 an ounce as the pace of ETF purchases slowed, jewellery sales remained weak and central banks released metal onto the market.
Central banks have been major buyers of gold in recent years but in August sold more than they bought, the WGC.
Total annual demand for gold globally is around 4,000- 4,500 tonnes a year.
GOLD STOCK NEWS
NOTE: Gold Stock News does not itself endorse or guarantee
Gold Stock News is published by
Website Designed & Maintained by Gemini Communications
PLEASE READ DISCLAIMER