Outflow from global gold ETFs continues despite gold at all-time high
Collective holdings of global gold ETFs are down 7% to 3,236 tonne on back of $14 billion outflows from gold funds
Collective holdings of global gold ETFs are down 7% to 3,236 tonne on back of $14 billion outflows from gold funds
Year-to-date global Gold ETF outflows stand at $11 billion and total holdings have fallen by 189 tonnes at the end of September 2023.
The clamour for passive fund schemes — exchange-traded funds — is on the rise in India. Assets under management for ETFs have grown from around ₹5,400 cr as of 2014 to around ₹4 lakh cr currently.
A lot will depend upon how interest rate hikes impact asset prices and whether corporate earnings are revised downwards if GDP growth is revised downwards
These debt ETFs and index funds could be corporate debt indices, G-sec indices, or hybrid debt indices.
Gold exchange traded funds added a record 877 tonnes during 2020, nearly 231 tonnes more than the 2009 record of 646 tonnes. Experts argue much of gold's growth drivers will continue in 2021 too.
According to CRISIL Research, the Indian mutual fund industry’s assets under management can touch the ₹50 lakh crore mark by March 2025, and multiple triggers will aid this massive growth.
At a time when India’s benchmark equity indices are hitting fresh highs every week, statistics show that gold is losing its safe haven sheen.
A World Gold Council report says global demand for gold has taken a beating, falling by as much as 19% in the third quarter of this year.
According to the World Gold Council, global gold-backed ETFs added 298 tonnes during January-March 2020, the highest quarterly addition since 2016.