The market's investment in gold ETFs hit a new high in 2020.

　　A few days ago, the World Gold Council disclosed that the net inflow of global gold ETFs (Exchange Traded Funds) in 2020 is as high as 877 tons (approximately US$47.9 billion), and its total holdings have increased by more than one-third, setting a historical record of 3,752 tons. new highs. The scale of gold ETF asset management in all regions has seen significant growth.

　　The surge in gold ETF holdings is mainly due to the outbreak of the new crown epidemic. The new crown pneumonia epidemic has caused the global economy to fall into the worst recession since the Great Depression. This prompted governments to announce unprecedented economic stimulus measures, pushing interest rates lower or even entering a negative range, all of which boosted the safe-haven attractiveness of gold.

　　In the second half of 2020, the risks are increasing. Governments of various countries have introduced stimulating fiscal and monetary policies to cope with the impact of the epidemic on the economy. Superimposed on the strong rise in gold prices, the net inflow of gold ETFs has been further driven. In early August, the price of gold once climbed to more than $2,000 per ounce, setting a record high. Since then, the growth rate of the global gold ETF has slowed down, and then the price of gold has fallen back to the level of US$1,900 per ounce.

　　Compared with other forms of physical gold investment, the strong performance of gold ETFs is particularly outstanding. Under the influence of the new crown pneumonia epidemic, global demand for gold bars and gold coins is mixed: the strong demand in the Western market is in sharp contrast to the sluggish demand in the Eastern market before it resumes in the third quarter of 2020. In the first three quarters of 2020, gold ETFs accounted for almost two-thirds of global gold investment demand, much higher than any previous year. At the same time, the demand for gold ETFs in 2020 has reached a quarter of the average annual output of gold in the past five years.

　　The World Gold Council stated that although 2021 has entered, many drivers of gold demand in 2020 will continue, such as lower interest rates and reduced opportunity costs, fiscal stimulus measures, excessive valuations in the stock market, and the impact of the new crown pneumonia epidemic. The continued impact of the economy.