Global investors channelled a record US$89bn into physically-backed gold ETFs in 2025 – the largest on record – as the gold price delivered its strongest performance since 1979.
Surging demand for safe-haven assets last year pushed gold prices to new highs, lifting assets under management (AUM) and trading liquidity to record levels, according to the latest report from the World Gold Council. The review comes after a year dominated by gold-related market noise, with effects also seen in silver.
Over the year, the gold price broke records 53 times to close out at US$4,368/oz. In turn, global gold ETFs’ AUM doubled to an all-time high of US$559 billion ($834 billion), with holdings reaching a historic peak of 4,025 tonnes, up from 3,224 tonnes in 2024.
December was found to extend the trend, delivering a seventh straight month of inflows and adding US$6 billion, led by North American funds amid central banks, tariff and trade risks, strong market activity and a weaker greenback. Australia recorded US$62 million in inflows for the month, ranking 10th globally for flows.
Aided by both the continued strength in the gold price and consistent inflows, global gold ETFs AUM rose 5 per cent in December, while holdings increased by 2 per cent. Meanwhile, overall gold market trading volumes remained steady during the month, ending 2025 with a record US$361 billion per day.
After a year marked by fluctuations, the data suggest the precious metal may be settling into a period of balance and consolidation.
Global X analysis shows the surge was reflected in gold ETF performance, with precious metals – along with copper miners and critical minerals – dominating the year’s top-performing ETFs.
Betashares’ Global Gold Miners Currency Hedged ETF led the pack, posting a 148.8 per cent year-to-date return, followed by VanEck’s Gold Miners ETF at 138.7 per cent. The Global X Physical Precious Metals Basket Structured ETF and Betashares Gold Bullion Currency Hedged ETF also ranked in the top ten, returning 72.2 per cent and 62.7 per cent, respectively.
Echoing the World Gold Council, senior product and investment strategist at Global X, Marc Jocum, attributed the surge to a combination of strong central bank demand, persistent geopolitical tensions, elevated fiscal deficits, fears around US currency debasement and strong safe-haven buying.
He added that Australian retail investors contributed to strong inflows, buying not only physical gold – evident in the famous queues at ABC Bullion stores in Sydney – but also gold ETFs.
“While some of the rally was driven by retail fear of missing out (FOMO), gold’s recent healthy consolidation and finding technical support levels suggest positioning is becoming more balanced,” Jocum said.
All but one of the top ten ETFs were concentrated in precious metals, copper and critical minerals. The exception, the iShares MSCI South Korea ETF, secured sixth place with an 80.5 per cent return, driven by rallies in areas including arms exporters, AI, and beauty stocks.
Looking ahead, Jocum said ongoing geopolitical risks, strong central bank demand and concerns around the US dollar would continue to support real assets, with 2026 shaping up as a repeat.
“Notably, many investors were under-allocated to gold in 2025, including some large superannuation funds that have historically had little or no allocation to precious metals.
“Looking ahead, investors are likely to reverse this under-positioning in 2026 given the strong performance of gold and silver,” he said, adding that ETFs offer a convenient and low-cost method to increase exposure.
According to Jocum, the trend toward precious metals, particularly in ETF form, reflects a structural, long-term shift rather than just short-term market fluctuations.
