Retail gold insights 2019
Gold-backed ETF demand remained strong despite stock market all-time highs in October
Holdings in global gold-backed ETFs and similar products rose by 69 tonnes(t) to 2,440t in 2018, equivalent to US$3.4bn of inflows. Global gold-backed ETFs grew 3% in 2018, driven by strong growth in European funds and increased global inflows during December.** This is the first time since 2012 that the value of total gold-backed ETF holdings has finished the year above US$100bn.
Webinar: Gold Demand Trends, Q3 2019
Watch today’s Gold Demand Trends webinar where we discussed the key shifts in gold demand during Q3 2019 as the price reached a six-year high.
Gold Demand Trends Q3 2019
Surge in ETF inflows supports Q3 gold demand growth. Gold demand grew modestly to 1,107.9t in Q3 thanks to the largest ETF inflows since Q1 2016
The need for bullion banking in India
The global bullion banking industry is large and well-established with annual revenues estimated at more than US$1.5bn. The market includes both international banks and smaller local players.
Chinese gold ETFs’ AUM reached all-time high in September while physical demand remains soft
- The Shanghai Gold Benchmark price saw a modest decline in September, with the local gold premium falling sharply due to the stabilising currency and increasing gold imports.
- Led by the declining gold price and the soft physical demand, both Au(T+D) and Au9999’s trading volume dropped last month while loadouts from the Shanghai Gold Exchange (SGE) levelled off.
- After hitting the lowest level since 2017 in July, gold imports to China rebounded in August.
- The People’s Bank of China (PBoC) added another 6t to its gold reserves in September. After ten consecutive purchases, the PBoC now holds 1,948t gold in its reserves.
Gold demand in India continues its downward trajectory in September
- Indian gold imports reached just 26.3t in September 2019 – 61% lower than the same month last year.
- The domestic gold price was 2.4% lower in September compared to August, but 18.7% higher y-t-d.
- With weak physical demand, the discount in the local gold market reached a peak of US$55/oz in September, but narrowed to US$29.5/oz by the end of the month.
- Monsoon levels in 2019 are the highest for 25 years; Kharif sowing almost flat y-o-y.
Gold-backed ETFs holdings hit record highs in September
Holdings in global gold-backed ETFs and similar products rose by 69 tonnes(t) to 2,440t in 2018, equivalent to US$3.4bn of inflows. Global gold-backed ETFs grew 3% in 2018, driven by strong growth in European funds and increased global inflows during December.** This is the first time since 2012 that the value of total gold-backed ETF holdings has finished the year above US$100bn.
