The world of gold investment is experiencing a remarkable transformation, driven primarily by an uptick in gold prices and substantial net purchases of gold exchange-traded funds (ETFs). As of now, the total scale of gold ETFs within China is approaching an astounding 70 billion yuan, having doubled since the end of last yearAmong this, commodity gold ETFs are leading the charge with an impressive scale exceeding 65.8 billion yuan, and three standout ETFs boast individual scales exceeding 10 billion yuan.

Looking ahead, experts within the industry opine that in light of a prevailing downtrend in U.SFederal Reserve interest rates coupled with a decline in the dollar's strength, gold remains a highly valuable asset class for long-term investment.

The growth trajectory of gold ETFs has been significantOn December 10th, Eastern Time, gold prices surged, reaching 2,720 USD, a near two-week high, thereby achieving a three-day upward trend

This increase in international gold prices has significantly buoyed the performance of commodity funds, particularly gold ETFs throughout the year.

As per the statistics available, by December 10th, the collective scale of 14 gold ETFs within commodity funds hit 65.856 billion yuan, soaring from 29.038 billion yuan at the end of the previous year, marking an impressive increase of over 126%. With the latest fund share figures at 11.084 billion shares, this also signifies an almost 80% increase since last year.

It's worth noting that in the realm of gold ETFs, three funds have achieved the notable benchmark of over 10 billion yuan eachTopping this list is Huaan Gold ETF, with a current scale of 27.115 billion yuan—almost twice the size it was at the end of last yearThis ETF’s latest shares total 4.548 billion, representing a 50% increase from the end of last year

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Following closely, the Bosera Gold ETF stands at a size of 14.343 billion yuan, nearing double its scale within the year, with latest shares at 2.406 billion, reflecting a 52% increaseAdditionally, E Fund Gold ETF has reached a scale of 12.674 billion yuan, with a phenomenal increase exceeding 160% this year, and its share count doubling to 2.148 billion.

In terms of performance, gold ETFs have delivered an impressive average annual return of 28.05%, significantly outperforming other broad asset typesThis remarkable performance underscores the enduring appeal of gold as a reliable investment in volatile market conditions.

In the contemporary financial product ecosystem, while commodity gold ETFs garner significant attention from investors, gold stock ETFs are also emerging as crucial players in the marketCurrently, there are six versions of gold stock ETFs available for investors looking to diversify their portfolios.

Out of this select group, only two have successfully posted positive returns this year, a commendable achievement in the ever-competitive financial market landscape

Analyzing the standout performers up to December 11th, data shows that the Huaxia Gold Stock ETF has been on an impressive growth trajectory since its launch on January 11th, accumulating a return of 24.71%. Investors who dared to invest early on have essentially seen their investments grow from a mere seed into a towering tree, signifying remarkable returns over nearly a year of market fluctuations.

Similarly, the Yongying Gold Stock ETF has also demonstrated great performance, achieving a return of 16.09% this yearWhile this figure is slightly lower than that of the Huaxia ETF, within the vast sea of financial investment products, it remains an attractive outcome that promises satisfactory returns for investorsThe success of this ETF can be attributed to the professional team's in-depth research and precise selection of various stocks within the gold industry, along with their adept ability to navigate and adjust during market volatility, and meticulous optimization and management of their investment portfolio.

Adding to the intrigue surrounding gold is the recent behavior of global central banks in purchasing gold

According to the latest data, as of the end of November 2024, China's official gold reserves reached 72.96 million ounces, an increase of 160,000 ounces (approximately 4.54 tons) from the end of October, marking the first increase in six months by the People's Bank of China.

On December 5th, the World Gold Council revealed that in October, the net gold purchases by global central banks amounted to 60 tons, the highest single-month net purchase figure for 2024. October’s purchases have nearly doubled the average monthly buying rate over the past year.

In response to these developments, Haitong Securities has noted that the potential for intensified de-globalization following the election of Donald Trump may further motivate central banks to increase their gold purchasesFurthermore, the division in global economic cycles provides additional support for gold prices.

Since the third quarter of this year, the gold market has seen heightened volatility, with prices reaching annual highs near 2,800 USD around the time of the U.S