Gold holdings in exchange-traded funds climbed to a month-end peak, a sign that investor inflows are continuing to add fuel to bullion’s scorching rally.
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Total holdings by ETFs increased to 3,932 tons at the end of November, a sixth consecutive month of growth, according to data from the World Gold Council. With more than 700 tons of this total purchased in 2025, inventories are set for their biggest-ever year of growth, the WGC said in a report.
ETF holdings have risen every month this year except May, in both dollar and tonnage terms. Asia was the key driver of November inflows, with China the single biggest contributor to growth, driven by equity market weakness and geopolitical tensions. India has also recorded six straight months of net inflows, the WGC data showed.
Gold has been gaining steadily since late 2022, but its growth has accelerated dramatically this year. The precious metal is on track for its best annual performance since 1979, with investors seeking havens from risk and piling into alternative assets as part of a wider retreat from sovereign bonds and currencies.
This so-called debasement trade has benefited assets like precious metals and Bitcoin amid concerns about fiscal deficits in major economies. Investors have also been drawn to bullion as the Federal Reserve shows greater readiness to cut interest rates, with lower borrowing costs a tailwind for non-yielding assets like gold.
“ETF investors have been a price maker over the past four to six months, rather than a price taker,” said Rhona O’Connell, head of market analysis at StoneX Financial Ltd., adding that recent inflows are likely to continue given the general rotation into hard assets like gold.
Gold ETFs Hit Historic High: Why Investors Are Rushing to the Yellow Metal
Global gold holdings in Exchange-Traded Funds (ETFs) have climbed to a massive month-end record.
According to the latest data from the World Gold Council (WGC), investors are continuing to pour money into gold as prices keep rising. This marks the sixth straight month of growth for Gold ETFs, showing that the “bull run” (rising trend) is far from over.
Key Highlights
- Record Holdings: Total global gold ETF holdings jumped to 3,932 tonnes by the end of November 2025.
- Continuous Growth: This is the sixth consecutive month where buying has exceeded selling.
- Best Year Since 1979: The precious metal is on track for its best annual performance in over 40 years.
- Asia Leads the Way: A large chunk of this demand is coming from Asia, with India and China leading the charge due to market uncertainty and geopolitical tensions.
Why Is Everyone Buying Gold?
The “yellow metal” is shining brighter than ever for a few simple reasons:
- Safe Haven: When stock markets look shaky or global politics get tense, investors run to gold for safety.
- Interest Rate Cuts: With the US Federal Reserve showing signs of cutting interest rates, gold (which doesn’t pay interest) becomes more attractive compared to bonds or fixed deposits.
- Debasement Trade: Investors are worried about currencies losing value due to high government debts, making “hard assets” like gold and Bitcoin more popular.
Market Insight: “ETF investors have become ‘price makers’ in the last six months,” says Rhona O’Connell of StoneX Financial Ltd. This means the heavy buying by ETF investors is actually pushing the gold price up, rather than just reacting to it.
What This Means for Indian Investors
India has recorded six straight months of net inflows into Gold ETFs. For Indian investors, this global trend confirms that gold remains a strong part of a balanced portfolio.
- AUM Growth: In India, Assets Under Management (AUM) for Gold ETFs have recently crossed major milestones (over ₹1 lakh crore).
- Diversification: Experts suggest holding gold to protect your portfolio against inflation and stock market volatility.
Frequently Asked Questions (FAQs)
1. What is a Gold-Backed ETF?
A Gold Exchange-Traded Fund (ETF) is a type of investment that tracks the domestic physical gold price. One Gold ETF unit is equal to 1 gram of gold (usually). It allows you to invest in gold without the hassle of storing physical jewelry or coins.
2. Why are Gold ETF holdings increasing right now?
Holdings are rising because the price of gold is rallying (going up). Investors are seeking safe assets due to global tensions and expected interest rate cuts by the US Federal Reserve.
3. Is it a good time to invest in Gold ETFs in India?
While gold is at a high, many financial advisors recommend keeping 10-15% of your portfolio in gold for stability. Since the trend is currently positive (“bullish”), many are continuing to invest via SIPs (Systematic Investment Plans).
4. How does the global record affect gold prices in India?
Global trends directly impact domestic rates. When global ETF holdings and prices rise, the import cost of gold rises, leading to higher prices for 22K and 24K gold at your local Indian jeweller.
5. How can I buy Gold ETFs?
You can buy Gold ETFs just like shares on the stock market. You need a Demat account and a trading account. You can purchase them through stockbrokers or investment apps during market hours.
Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.
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