<p>Exchange traded funds (ETFs) storing gold for investors shrank for a second month in December, but nevertheless grew more than ever before in 2020 thanks to massive stockpiling earlier in the coronavirus outbreak, the World Gold Council said on Wednesday.</p>.<p>Gold is traditionally used as a safe store of wealth, and investors rushed to hoard it as the pandemic swept through the global economy.</p>.<p>It also benefits from low interest rates, because these drive down returns on bonds, a competing asset class, and the virus forced central banks to slash rates and commit to keeping them low.</p>.<p>ETFs grew their holdings by 876 tonnes in 2020 - equivalent to around a quarter of the annual output of the world's gold mines, the World Gold Council (WGC) said.</p>.<p>That far outstrips the previous record of 646 tonnes, set in 2009, and took total ETF holdings to 3,751 tonnes, worth around $225 billion at current prices, according to the WGC.</p>.<p>However, momentum turned late in the year as coronavirus vaccines were rolled out and investors refocused on assets that benefit from economic recovery and growth.</p>.<p>Gold prices have fallen to around $1,850 from a record high of $2,072.50 in August, and ETF holdings fell by 109 tonnes in November and 40 tonnes in December, ending a year-long run of growth.</p>
<p>Exchange traded funds (ETFs) storing gold for investors shrank for a second month in December, but nevertheless grew more than ever before in 2020 thanks to massive stockpiling earlier in the coronavirus outbreak, the World Gold Council said on Wednesday.</p>.<p>Gold is traditionally used as a safe store of wealth, and investors rushed to hoard it as the pandemic swept through the global economy.</p>.<p>It also benefits from low interest rates, because these drive down returns on bonds, a competing asset class, and the virus forced central banks to slash rates and commit to keeping them low.</p>.<p>ETFs grew their holdings by 876 tonnes in 2020 - equivalent to around a quarter of the annual output of the world's gold mines, the World Gold Council (WGC) said.</p>.<p>That far outstrips the previous record of 646 tonnes, set in 2009, and took total ETF holdings to 3,751 tonnes, worth around $225 billion at current prices, according to the WGC.</p>.<p>However, momentum turned late in the year as coronavirus vaccines were rolled out and investors refocused on assets that benefit from economic recovery and growth.</p>.<p>Gold prices have fallen to around $1,850 from a record high of $2,072.50 in August, and ETF holdings fell by 109 tonnes in November and 40 tonnes in December, ending a year-long run of growth.</p>