European ETP jumps a record high
ETP records 1121.4t in Q1 2019 Since the start of 2016, assets in European gold-backed exchange traded products (ETPs) have grown rapidly, hitting a record high of 1,121.4t (US$48bn) in Q1 2019. Now accounting for 45% of the global gold-backed ETP market, they have transformed gold investment in Europe. This update summarises the growth in AUM since 2016, the factors behind it, and the outlook for European gold-backed ETPs. Stellar growth since 2016: Since their emergence in 2003, gold-backed ETPs (exchange-traded products) have transformed the European gold investment market. At the end of 2012, when the gold price hit a record high around €1,400/oz, assets under management (AUM) were just shy of 1,000t (~US$50bn). After falling back between 2012-2015, as the gold price came off its highs, inflows into European gold-backed ETPs surged by an annual record of 281t in 2016. The value-eroding negative yield environment, as well as spate of political worries, not ...