According to the World Gold Council (WGC), ETF and Commodity Trust (ETC) gold reserves have hit new records. As of the end of August 2020, the total world gold reserves of these funds amounted to 3.844 tons - an increase of 39 tons compared to the previous month. At the same time, in August there was a minimum increase in comparison with the previous nine months
Since the beginning of this 2020, ETF gold reserves have grown by 957.5 tons worldwide. The situation is as follows in the regions of the world: North America (+622.1 tons), Europe (+278.6 tons), Asia (+ 36 t) and other regions (+20.7 t). However, in Europe there was also an outflow of funds in the amount of 11 tons. Most likely, we are talking about German commodity funds.
According to many analysts, the global situation will be favorable for the gold market, so the demand for shares of "gold" commodity and ETF funds will continue to grow. The fact is that these financial instruments are of great interest to institutional investors. With their help, they position themselves in the precious metals market. Of course, private investors also buy shares in these funds. But they shouldn't forget that this is a risky investment. Your best bet is to own physical gold and keep it close to you.