Investors Flocked to Gold ETFs in August | SchiffGold
According to a report from the World Gold Council, global investors poured another US$5.5 billion into physically backed gold exchange-traded funds (ETFs) during August, extending a three-month buying streak and pushing total assets under management (AUM) to a record US$407 billion. Holdings climbed by 53 tonnes to 3,692 tonnes—the highest month-end tally since mid-2022—even as the metal itself briefly pierced $3,600 per ounce on Friday. Year-to-date inflows now stand at US$47 billion, the second-biggest January-through-August haul on record, eclipsed only by the frantic pandemic rush of 2020. In an era when policymakers insist inflation is “well-anchored,” investors appear unconvinced.
North America did the heavy lifting. U.S.-listed products absorbed US$4.1 billion—helped along by Federal Reserve Chair Jerome Powell’s unexpectedly dovish tone at Jackson Hole, which knocked rate-hike expectations and even sparked chatter of a September cut. Low-fee vehicles (charging 0.20 percent or less) are enjoying their strongest calendar year ever, hinting at a gradual but deliberate build-up of long-term safe-haven positions rather than a speculative burst. With average daily turnover in the global gold market steady at roughly US$290 billion, liquidity is ample, and investors seem willing to exchange fiat paper for a tangible store of value before the next round of monetary experimentation begins.
Source: World Gold Council
Europe accounted for another US$1.9 billion of August inflows, led by the U.K., Switzerland, and Germany. A surprise 39 percent U.S. tariff on Swiss goods jolted confidence in the once-placid alpine economy and nudged local savers toward bullion. German inflows accelerated after Berlin’s second-quarter GDP was quietly revised lower on 22 August, reigniting recession talk in the eurozone’s engine room. For investors wary of negative real yields and ballooning public debt, gold’s lack of counter-party risk retains its old-fashioned charm.
Still, the global picture remains one of steady accumulation. Total ETF holdings are only 6 percent below the all-time high set in November 2020, and August’s 5 percent AUM jump came without the panic atmosphere that characterized that earlier peak. Sound-money advocates note that the Fed’s balance sheet is still swollen and Washington now flirts with industrial-policy tariffs, hardly a recipe for lasting price stability. In that context, today’s gold buying looks less like a trade and more like an insurance policy.
If policymakers continue to test the limits of easy money and protectionism, investors may keep voting with their wallets regardless of how soothing the official rhetoric sounds.
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