Global gold-backed ETF outflows contracted by 4%
2022 likely increase the need for a high-quality liquid asset such as gold Physically backed gold ETFs saw global outflows of 173 tonnes (t) (-US$9.1bn, -4.0% AUM) in 2021. Collective gold holdings were down 5% to 3,570t for the year, while assets under management (AUM) in value terms dropped 9% to US$209bn as net outflows were compounded by a 4% contraction in the gold price. Despite considerable outflows for the year, gold ETF holdings remain significantly above pre-pandemic levels, as they posted record inflows of approximately 875t (US$49bn) during 2020. Losses in 2021 were driven by North American funds, which never recovered from their significant outflows in Q1, ultimately registering outflows of nearly US$11bn (-200t) by year-end. The bulk of these outflows were from large US funds whose assets fluctuated in tandem with the gold price. Conversely, European ETFs turned positive in the second half of 2021 amid rising inflation expectations, ending the year with marginal gains o