The World Gold Council (WGC) released a report recently indicating that holdings in gold-backed ETFs reached an all-time high during March with net inflows up by 5% valued at $8.1bn. According to WGC, this capped a record-breaking quarter, as gold ETF holdings and assets added $23bn in net inflows, the largest quarterly gain in history. The WGC reports also noted that the growth was spread across all regions of the world, with Europe seeing a 5.8% increase in inflows, the US a 4% rise and Asia, primarily China, up 6.4% while other regions reported a rise of 9.4%.
The trend was also reflected in retail investor demand for bars and coins. According to Metals Focus, the US Mint silver Eagle coin sales surged to 5.48Moz in March from just 0.65Moz the prior month. The Perth Mint said its March gold bar and coin sales totalled 90koz, their highest since April 2013. On the whole, several mints have indicated that their order books are full for the next 1-2 months.
Metals Focus states that gold bullion imports into India in March dropped to a 6½-year low, with the lockdown from March 25 adding to the impact of a slowing economy and record-high rupee gold prices. The consultancy says that Q2 imports may suffer a far greater decline and that demand at Akshaya Tritiya, one of the most auspicious days in the Hindu calendar to buy gold is likely to be low.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
