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WGC Gold ETF Commentary : US leads multiyear record inflows

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February in review 

Global physically-backed gold ETFs1 saw significant inflows in February totaling  US$9.4bn, the strongest since March 2022. North American flows  flipped positive following two consecutive monthly outflows, recording one of its  strongest months on record. Asian demand was also strong while European  inflows narrowed. We have now seen three consecutive months of strong global  inflows which, combined an upward trending gold price, have lifted total assets  under management (AUM) to US$306bn, another month-end peak. Meanwhile,  holdings rose to 3,353t, the highest month-end level since July 2023.

Highlights

  • Global gold ETFs saw continued  inflows during February as  holdings across all regions grew.
  • The third consecutive monthly inflows lifted global gold ETFs’ total  AUM and collective holdings by  4.1% and 3.1% respectively in the  month.
  • Global gold trading volumes kept  rising: OTC markets led the charge.

Regional overview  

North American demand surged in February, adding  US$6.8bn. This was the largest single month inflow for the  region since July 2020 and the strongest February ever. As  physical shipments into COMEX vaults from London and  other markets made headlines, the positive gold market momentum also benefited North American gold ETFs.  

But there were other important contributors. For instance,  US Treasury rates trended down with various economic  signals flashing red.3 Lower yields, alongside a weaker dollar,  boded well for the gold price during most of the month – in  fact, it reached nine new record highs in February before  moving lower in the latter half.4 We believe reduced opportunity costs and a record-shattering gold price were  key in attracting inflows. Moreover, a pullback in equity  markets and fears of stagflation were also likely positive  drivers of demand. Lastly, we have observed significant inflows triggered by gold ETFs’ options expiry, signalling  further bullish sentiment from investors.  

While we would not be surprised to see a slowdown in  momentum, ongoing recession concerns and policy  uncertainties – geopolitical and economic – will likely  continue to provide a supportive floor for demand. 

Gold trading volumes rise Trading activities across global gold markets increased in  February, ending the month at roughly US$300bn/day on  average. OTC trading, dominated by the LBMA, rose further, as dealers moved gold in response to the US tariff concerns.  Gold futures trading volumes at COMEX were down while  Shanghai Futures Exchange saw a sizable increase, given the  strong local gold price performance. Additionally, gold ETF  trading activities also rose, led by North America.

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International News

Gemfields Resumes Emerald Mining in Zambia as Market for Premium Stones Rebounds

Following a four-month pause, the miner restarts operations at Kagem’s Chama pit amid rising demand and improving auction results.

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Gemfields has announced the resumption of open-pit mining operations at its Kagem emerald mine in Zambia, following signs of recovery in the global market for high-quality colored gemstones. The move comes after a four-month suspension of mining activities, which began on January 1, 2025, as part of a cost-control strategy during a challenging period for the gemstone sector.

During the suspension, Gemfields relied on processing material from existing stockpiles rather than extracting new ore. While the upgraded processing facility met expectations in terms of carat recovery, the company reported a lower yield of top-quality emeralds, citing the limited potential of stockpiled material compared to fresh ore from open-pit mining.

Encouraged by recent strong auction results and improving buyer sentiment, Gemfields will now restart mining in two high-potential zones within the Chama pit. The focus will be on minimal waste removal and targeted excavation to maximize recovery of premium-grade stones suitable for higher-end sales.

The company emphasized that this restart is a measured step, and it will continue to assess global market trends before making any decisions on returning to full-scale mining at Kagem. Gemfields holds a 75% stake in the mine, with the remaining 25% owned by Zambia’s Industrial Development Corporation (IDC).

The strategic restart underscores Gemfields’ confidence in the rebound of the premium emerald market while maintaining operational flexibility amid evolving global demand.

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WGC Gold ETF commentary:  Asia erupts as global momentum builds

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April in review 

Global physically backed gold ETFs1 added US$11bn in April, extending their  inflow streak to five months (Table 1, p2).2 Supported by a higher gold price and  continued inflows, global gold ETFs’ total assets under management (AUM) reached another month-end high of US$379bn. Meanwhile, holdings surged  115t to 3,561t, the highest since August 2022 and yet still 10% below the month end peak of 3,915t in October 2020.  

Asia led inflows, accounting for 65% of the net global total – their strongest month on record. North American demand was also sizable while European flows flipped negative. Other regions continued to experience positive demand,  albeit only mildly.  

Highlights 

Asia flows surged and North  America also saw robust demand,  while Europe witnessed mild  outflows. The strongest inflow since March  2022 and the continued gold price  surge pushed global gold ETFs’ AUM to US$379bn, 10% higher in  the month. Global gold trading volumes rose  significantly across all markets.

Regional overview 

Asia experienced record breaking inflows during April,  adding US$7.3bn, the strongest ever. The bulk of the  demand came from China marking the third  consecutive month of inflows and the strongest on record for the region. And more impressively, the April inflows have  now surpassed those in Q1 and in full year 2024. In addition  to the continued local gold price surge, demand was also driven by: 

• The ongoing trade dispute with the US, which has raised  fears of weaker growth, amplified equity volatility, and intensified expectations of the local currency depreciation 

• Lower government bond yields, amid rising rate cut  anticipations. 

Global trade risks and the gold price surge also boosted gold  ETF demand in Japan, their seventh consecutive month inflow. India also recorded steadily positive flows, following net outflows last month.  

North American investors continued to buy gold ETFs,  adding US$4.5bn in April. Although flows moderated  compared to February and March, this month marked the  second strongest April on record. And net cumulative flows  through the first four months of the year have already  outpaced 2020’s historical performance.  

April and y-t-d 2025 regional flows* price momentum – albeit less pronounced compared to  March – together with ongoing financial market turmoil amid  trade policy uncertainties led investors in the region to gold.  

Near-term momentum may ebb and flow, but expectations  for continued market volatility – driven by concerns such as  future trade policy and inflation – should provide a level of  support to flows over the medium-to-long term. 

Europe saw modest outflows of US$807mn in April,  reversing course slightly. Outflows for the region were  primarily concentrated in the UK, which were partially offset  by inflows into Switzerland and France.  

Nonetheless, the region witnessed healthy demand during  most of April as the gold price rallied. Lower opportunity  costs, fuelled by another rate cut from the ECB,3 and  intensified expectations of a BoE reduction in early May 4 supported gold ETF buying. But late-month gold price  declines sparked investor selling, likely profit-taking, erasing  earlier gains. Sharp stock market rebounds may have further  reduced gold’s appeal. 

With the local currency strengthening against the dollar, FX hedged products, mainly in Switzerland, saw additional  demand, curbing other outflows.  

Funds in other regions posted their fifth consecutive month  of positive demand (US$213mn) – Australia and South Africa  continued to drive gold ETF inflows in the region. 

Gold trading volumes boom 

Global gold trading volumes across various markets  rocketed in April, averaging US$441bn/day, 48% higher  m/m. Amidst the strong gold price rally, all markets  witnessed significant m/m rises in trading activities. LBMA  OTC turnovers reached US$181bn/day, 31% higher m/m and notably higher than the 2024 average. Exchange-traded  activities jumped by 67% compared to March, with the  COMEX (+42% m/m) and the Shanghai Futures Exchange (+122% m/m) leading the charge. Although gold ETF trading  volumes are smaller than other sectors, they saw the  greatest m/m increase of all, surging 120%. 

Total net longs of COMEX gold futures fell 30% m/m to 566t  by the end of April. Net long positions held by money  managers moved lower almost each week, reaching 360t by  the end of the month and 35% below the 2024 average. This  is mainly driven by a sharp decline in total longs – likely due  to profit taking as gold refreshed new records – and a mild  rise in shorts. 

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International News

Gold vs. Bitcoin – The Defining Investment Debate

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The ongoing debate between gold and Bitcoin has become central for investors navigating today’s uncertain markets. Gold, long regarded as a safe-haven asset, is being challenged by Bitcoin, whose rapid ascent and digital nature offer high-growth potential. As both assets reach new price milestones-gold surging to record highs and Bitcoin attracting institutional capital-the choice between them is increasingly consequential

Accessibility and Storage:
Gold’s physical form (coins, bars, jewelry) provides tangible security but comes with challenges: purity checks, storage costs, and liquidity issues. Selling physical gold may involve discounts and finding buyers, which can restrict quick access to funds. Bitcoin, by contrast, offers 24/7 global access via digital exchanges, with no need for physical storage. However, the responsibility of securing private keys and navigating digital wallets can be daunting for newcomers, introducing its own risks

Competitive Dynamics:
Gold’s appeal lies in its stability and long history as a store of value, especially during inflation and geopolitical crises. It has delivered steady, moderate returns and is supported by central bank demand. Bitcoin, while far more volatile, has demonstrated exponential returns in recent years and is increasingly viewed as a hedge against monetary instability. Its digital, decentralized nature and capped supply have attracted both retail and institutional investors. Other cryptocurrencies like Ethereum, Dogecoin, and XRP add diversity but also complexity to the crypto landscape

Investment Prospects:
Gold continues to serve as a conservative, inflation-resistant asset, especially favored during economic stress. Bitcoin, though highly volatile, offers outsized growth potential and is gaining legitimacy through institutional adoption and regulatory clarity. A diversified approach-combining gold’s stability with Bitcoin’s growth-can balance risk and reward in a modern portfolio.

Long-Term Value:
Gold’s enduring role as a wealth preserver contrasts with Bitcoin’s speculative, high-reward profile. Gold is trusted for crisis resilience; Bitcoin is favored for its upside and innovation. Ultimately, the gold vs. Bitcoin decision hinges on an investor’s risk appetite and financial objectives: gold for stability, Bitcoin for growth126.

Conclusion:
The gold or Bitcoin debate is a choice between tradition and innovation. Gold offers physical dependability and historical security; Bitcoin provides digital accessibility and the potential for exponential gains. Many investors now opt for both, leveraging gold’s stability alongside Bitcoin’s growth to navigate an evolving financial landscape

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