Also, the investment in these gold products reached 146 tonnes in the initial six-month period of the current year, WGC report noted.
SEATTLE (Scrap Monster): The World Gold Council (WGC) has released gold investment update report for the European region.
According to the report, the accommodative monetary stance of the European Central Bank (ECB) since the outbreak of the Covid-19 pandemic has boosted gold investment in the region. The Europe-listed gold exchange-traded products (ETPs) recorded inflows of 256.3 tonnes valued at $13.8 billion last year, lifting the net holdings to 1,583.1 tonnes. In value terms, the inflows recorded historic high level.
The gold bar and coin demand remained robust throughout the pandemic period, as investors wary of inflation and low interest rates flocked to gold assets seeking security. The annual demand for gold bars and coins in Europe stood at 249 tonnes in 2020. Also, the investment in these gold products reached 146 tonnes in the initial six-month period of the current year, WGC report noted.
The ECB is feared to tighten monetary policy, mainly due to rising inflation across Europe in the recent months. A shift to higher interest rates may create headwinds for gold investment in the region. However, the WGC report noted that the pace of policy change is likely to remain slow.
The Council expects gold to continue to remain as a key strategic asset to European investors.