Global gold exchange-traded funds (ETFs) saw their largest monthly inflow in September, contributing to the most active quarter on record, according to the World Gold Council.
This trend indicates a significant increase in investor interest in gold, which is most likely driven by a variety of market factors that influence asset allocation strategies.
The surging gold price and hefty inflows brought global gold ETFs’ total AUM to another record high.
Q3 in review
Global physically backed gold ETFs recorded their largest monthly inflow in September, resulting in the strongest quarter on record of US$26bn, reports WGC.
North American investors led the charge for most of the quarter; at US$16.1bn, the inflow represents the largest Q3 and second largest quarter on record.
European funds also saw hefty buying and registered the region’s second-strongest quarter (US$8.2bn), coming in just US$74mn shy of their record set in Q1 2020.
Asia buying slowed during the quarter (US$1.7bn), while funds in other regions (US$28.2mn) were relatively flat.
By the end of Q3, global gold ETFs’ total assets under management (AUM) reached US$472bn (+23% q/q), reaching another record high.
Holdings rose 6% q/q to 3,838t, only 2% shy of the peak of 3,929t, recorded in the first week of November 2020.
Gold Prices
Gold prices today stand at $3,965, marking a significant increase from $3,000 recorded on April 1. This latest surge of $1,000 in gold prices has occurred within a timeframe of approximately 210 days.
Gold prices are poised for a historic breakout, rising 50% by 2025 to about $4,000 per ounce as central banks boost up purchases and investors leave the collapsing US currency.
With a $1,000 increase in just over 7 months, gold is beating fiat currencies and US Treasuries, fueled by global economic concerns, trade disputes, and the impending US government shutdown.
Gold exchange-traded funds(ETFs) have gold as the underlying asset and are traded on stock exchanges.
The primary advantage of Gold ETFs over physical gold lies in the lower cost of ownership. The expense ratio for Gold ETFs is approximately 0.8%, significantly cheaper than the making charges associated with jewellery. Although there are additional costs, such as Demat charges and the tracking error of the fund, these expenses remain considerably lower than those incurred in the ownership of physical gold.
Net inflows for Gold ETFs saw a significant increase, rising from Rs 1,050.28 crore in August 2023 to Rs 2,189.5 crore in August 2025. Currently, there are 21 Gold ETFs in the Indian market, collectively managing an Assets Under Management (AUM) of Rs 72,495 crore.