Gold ETFs drew largest inflow in three years in Q1

HalfDime

Physically backed gold exchange-traded funds (ETFs) registered the largest quarterly inflow in three years in January-March, 2025, data from the World Gold Council (WGC) showed on Tuesday.

Gold ETFs saw an inflow of 226.5 metric tons worth $21.1 billion in the first quarter, the largest amount since the first quarter of 2022, when global markets were grappling with the immediate consequences of Russia's invasion of Ukraine.

This raised their total holdings by 3% to 3,445.3 tons by the end of March, the largest since May, 2023. Their record was 3,915 tons in October, 2020.

U.S.-listed funds led the inflow with 133.8 tons in the first quarter, while Europe-listed funds drew 54.8 tons, WGC added.

The active start of the year follows a modest net inflow to gold ETFs in 2024 after three years of outflows caused by high interest rates.
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Many investors buy and sell gold ETFs instead of physical metal like coins. The chart of gold shows it may have over-extended in a near-term basis.

GoldFinger1969

Gold ETFs have disconnected from the gold price:

derryb

@GoldFinger1969 said:
Gold ETFs have disconnected from the gold price:

Chart is not clear on what "ETF holdings" are and who is doing the holding.

If the ETF itself has reduced it's physical holdings in the face of higher gold prices, then something will soon be blowing up. The ETF itself?

If the reduction in holdings mean customers are taking physical delivery then something will soon be blowing up. The ETF itself?

RedneckHB

@derryb said:

@GoldFinger1969 said:
Gold ETFs have disconnected from the gold price:

Chart is not clear on what "ETF holdings" are and who is doing the holding.

If the ETF itself has reduced it's physical holdings in the face of higher gold prices, then something will soon be blowing up. The ETF itself?

If the reduction in holdings mean customers are taking physical delivery then something will soon be blowing up. The ETF itself?

The price of the etf is determined by the price of gold. It doesn't matter whether the etf holds 10 ounces or 100 million ounces.

derryb

@RedneckHB said:

@derryb said:

@GoldFinger1969 said:
Gold ETFs have disconnected from the gold price:

Chart is not clear on what "ETF holdings" are and who is doing the holding.

If the ETF itself has reduced it's physical holdings in the face of higher gold prices, then something will soon be blowing up. The ETF itself?

If the reduction in holdings mean customers are taking physical delivery then something will soon be blowing up. The ETF itself?

The price of the etf is determined by the price of gold. It doesn't matter whether the etf holds 10 ounces or 100 million ounces.

My point is it matters a whole bunch if the ETF does not physically hold all the paper gold it is selling.

derryb

@derryb said:

@RedneckHB said:

@derryb said:

@GoldFinger1969 said:
Gold ETFs have disconnected from the gold price:

Chart is not clear on what "ETF holdings" are and who is doing the holding.

If the ETF itself has reduced it's physical holdings in the face of higher gold prices, then something will soon be blowing up. The ETF itself?

If the reduction in holdings mean customers are taking physical delivery then something will soon be blowing up. The ETF itself?

The price of the etf is determined by the price of gold. It doesn't matter whether the etf holds 10 ounces or 100 million ounces.

My point is it matters a whole bunch if the ETF does not physically hold all the paper gold it is selling.

HalfDime

The gold ETF holdings have nothing to do with the price performance of the ETFs themselves, it only shows the total amount in holdings for gold.

GLD is at record highs just like gold.

RedneckHB

@derryb said:

@RedneckHB said:

@derryb said:

@GoldFinger1969 said:
Gold ETFs have disconnected from the gold price:

Chart is not clear on what "ETF holdings" are and who is doing the holding.

If the ETF itself has reduced it's physical holdings in the face of higher gold prices, then something will soon be blowing up. The ETF itself?

If the reduction in holdings mean customers are taking physical delivery then something will soon be blowing up. The ETF itself?

The price of the etf is determined by the price of gold. It doesn't matter whether the etf holds 10 ounces or 100 million ounces.

My point is it matters a whole bunch if the ETF does not physically hold all the paper gold it is selling.

Just as it matters as it does.

jmski52

My point is it matters a whole bunch if the ETF does not physically hold all the paper gold it is selling.

Doesn't the prospectus require the fund to beef up holdings of physical gold as more shares are bought?

derryb

@jmski52 said:
My point is it matters a whole bunch if the ETF does not physically hold all the paper gold it is selling.

Doesn't the prospectus require the fund to beef up holdings of physical gold as more shares are bought?

Maybe they fudge the truth. Maybe they lease gold (another paper promise) that has also been leased to others. In the paper gold world it is all a shell game.