Gold exchange-traded funds (ETFs), which are backed by physical gold reserves, significantly drive gold demand. It has been discovered that the UK holds the second-largest amount of gold ETFs in the world, surpassed only by the USA.
New research shows that the UK has the second-largest amount of gold ETFs in the world, underscoring its significant role in the gold market, second only to the USA.
Exchange-traded funds (ETFs) provide a straightforward way to trade on stock exchanges, similar to stocks, making it easy for investors to access the UK market. As a result, the UK has accumulated 595 tonnes of gold ETF holdings, placing it among the countries with the largest reserves.
This reflects the UK’s robust investment environment, where a significant number of individuals participate in various investment activities, including stocks and bonds.
Countries with the largest gold ETF holdings:
1. United States 1,518
2. United Kingdom 595
3. Germany 336
4. Switzerland 319
5. France. 65
6. China. 63
7. Canada. 63
8. India. 45
9. Australia. 41
10. Japan. 31
The United States has the largest amount of gold ETFs globally, significantly surpassing other countries. The ETF sector in the U.S. has experienced robust growth, largely due to favorable tax conditions.
Currently, the U.S. holds a total of 1,518 tonnes in ETF holdings, having diversified its investments across various asset classes, including stocks, bonds, and commodities.
The United States is the world’s largest holder of gold, with reserves totaling 8,133 tonnes, valued at $507 billion (£398.5 billion).
India has demonstrated an increasing interest in gold reserves, evidenced by 29,300 Google searches for ‘gold reserves’ in February 2024.
China’s demand for gold bars and coins is the highest globally. This intense investment interest has led to the country accumulating 280 tonnes of gold bars and coins.