WGC: Global Gold ETFs Post Outflows Of 5.1 Tonnes In Feb.
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(Kitco News) - Worldwide gold holdings ofexchange-traded funds slipped by 5.1 tonnes during February, the World GoldCouncil reported Tuesday.
Holdings stood at 2,393.4 tonnesat the end of the month, valued at $101.4 billion, the organization said.
The ETFs trade like a stock buttrack the price of a commodity, with metal put into storage to back the shares.Proponents say this creates a form of physical demand and also gives investorsexposure to gold prices without having to deal with factors such as assayingand storing of metal.
“Flows were negative as the priceof gold decreased and its volatility increased,” said the Gold Council in amonthly report on ETFs. “This was reflected by higher trading volumes globallyin ETFs and futures.”
Asian-listed ETFs added 7.9tonnes to their holdings during February, while flows across the rest of theglobe were negative, the WGC said. European funds lost 7.3 tonnes, while NorthAmerican-listed funds had outflows of 5.1 tonnes. Funds in other regions had amarginal outflow of 0.7 tonne.
In Asia, China’s still-smallBosera Gold Exchange Traded Open-End Fund ETF continued to grow, accumulating7.4 tonnes, thereby increasing its assets 207% month-over-month.
“Its sister funds - the I sharesand the D shares - were closed to new money and inflows from investors buyingshares through Alipay were directed into the listed fund, which is a reason forthe growing inflows,” the WGC said.
In Europe, currency-hedgedgold-backed ETFs continue to dominate inflows, the WGC said. Xtrackers PhysicalGold ETC EUR added 6.8 tonnes. Meanwhile, Gold Bullion Securities in London ledEuropean outflows by losing 8.1 tonnes.
The iShares Gold Trust led NorthAmerican inflows with 4.7 tonnes, while SPDR Gold Shares led global outflows bylosing 10.3 tonnes.
By Allen SykoraFor Kitco News
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