Global Gold-Backed ETF Holdings Decline By 23.7 Tonnes In September - WGC
(Kitco News) - Holdings in global gold-backed exchange-traded funds (ETFs) andsimilar products fell by 23.7 tonnes in September, equivalent to $932 millionin outflows, the World Gold Council (WGC) said Thursday.
This was the fourth straight monthly decline, leaving totalholdings at 2,329 tonnes. When combined with a 1.1% drop in the gold pricesduring September, gold ETF assets under management in U.S. dollars fell by2.3%.
The ETFs trade like a stock but track the price of the commodity,with metal put into storage to back the shares. They give investors exposure tothe price of gold without taking on certain costs, such as assaying andstorage.
ETFs posted net outflows of gold in all regions of the worldduring September, the Gold Council said. Holdings in European-based ETFs fellby 10.2 tonnes, while those based in Asia decreased by 6.5 tonnes. NorthAmerican ETFs recorded outflows of 6.1 tonnes, while the rest of the worldposted outflows amounting to a tonne.
“Flows in North American gold-backed ETFs were mixed, butultimately negative; funds with lower management fees had robust inflows thatwere offset by outflows in SPDR Gold Shares (GLD),” the WGC said. “In our view,this highlights appetite for buy-and-hold investing versus selling pressurefrom short-term tactical positions.”
Gold Council data showed that SPDR Gold Shares posted outflows of12.9 tonnes of gold. Meanwhile, iShares Gold Trust added 4.1 tonnes, U.K.Source Physical Gold added 3.6 tonnes and SPDR Gold MiniShares Trust added 3tonnes.
For the year to date, the Gold Council reported outflows of 42.3tonnes.
By Allen SykoraFor Kitco News
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