Gold ETFs See Record Inflows in 2020
Gold had a strong year with 25% returns, and gold ETF inflows followed, reaching a new record high of $47.9 billion in 2020.
Gold-backed and gold ETFs have increasingly become a vital part of the gold investment market, making up around two-thirds of global net inflows for investment demand in the precious metal.
While gold set new all-time highs around $2,075/oz in 2020, gold ETF inflows ($47.5B) almost doubled the previous record-year of inflows (2016, $24.1B), and eclipsed 2013’s record year of outflows ($-41.6B).
|Year||Total Flows in Tonnes||Total Flows in USD|
Gold futures also saw increased participation in 2020, with aggregate open interest reaching yearly record-highs of $120.9B as investors and traders sought gold exposure.
North American Funds Represent Most Gold ETF Inflows
In terms of regionality, North American funds accounted for almost two-thirds of global net inflows from Q1-Q3’2020, reaching a total inflow of $31.9B for the year.
SPDR Gold Shares (GLD), the first U.S. gold ETF launched in 2004, made up the majority of North American inflows at $15.4B. Interestingly, this one ETF alone eclipsed Europe’s entire inflows for 2020 ($13.3B).
While Gold ETFs in Asia only reached $1.9B last year, their holdings saw the greatest percentage increase of all regions (49%) with seven new Chinese funds listed in 2020.
Gold ETFs are Driving Gold Investment Demand
Although flows turned negative in November ($-6.8B) and December ($-2.2B) of 2020, Gold ETF flows have returned positive for the first couple of weeks of 2021, with a $2.1B inflow as of Jan 15, 2021.
This return to positive ETF flows came as gold fell more than 5% from its $1,950 highs reached in early January. This could be a sign of gold ETF investors buying the dip, as gold potentially begins to turn upwards for the final two weeks of January.
Since gold ETFs make up such a large part of gold investment demand, keeping an eye on ETF flows can offer insight into where the precious metal might be headed.
»If you found this article interesting, you might enjoy this post on the ETFs: Visualizing the Expanse of the ETF Universe
Charting the Continued Rise of Remote Jobs
Remote job postings are up nearly across the board, but a few key industries are have seen a significant shift over the last year.
Charting the Continued Rise of Remote Jobs
When the pandemic first took hold in 2020, and many workplaces around the world closed their doors, a grand experiment in work-from-home began.
Today, well over a year after the first lockdown measures were put in place, there are still lingering questions about whether remote work would now become a commonplace option, or whether things would generally return to the status quo in offices around the world.
New data from LinkedIn’s Workforce Report shows that remote work may be here to stay, and could even become the norm in a few key industries.
Broadly speaking, 12% of all Canadian paid job postings on LinkedIn offered remote work in September 2021. Prior to the pandemic, that number sat at just 1.3%.
While this data was specific to Canada, the country’s similarity to the U.S. means that these trends are likely being seen across the border as well.
Which Industries are Embracing Remote Work?
The nature of work can vary broadly by job type—for example, mining is tough to do from one’s living room sofa—so remote jobs were not distributed equally across industries.
Here are the numbers on job postings that were geared towards remote work:
|Industry||% Remote (Sept 2020)||% Remote (Sept 2021)||Change (p.p.)|
|Software & IT Services||12.5%||30.0%||17.5|
|Media & Communications||12.5%||21.3%||8.8|
|Wellness & Fitness||3.3%||21.2%||17.9|
|Hardware & Networking||2.2%||12.9%||10.7|
|Recreation & Travel||0.2%||3.7%||3.5|
|Energy & Mining||1.0%||2.7%||1.7|
Tech and healthcare industries are showing big shifts towards remote work, with the latter being influenced by a number of tech-driven changes, including telemedicine.
Physical distancing measures forced some industries to pivot quickly. Whether virtual fitness and wellness options (e.g. Peloton and Headspace) would remain popular beyond the pandemic was a big question mark, but this jobs data seems to indicate continued digital growth in these industries.
What the Future Holds
Since COVID-19 outbreaks are still underway, the true test for this trend will be whether these numbers hold up a year or two from now. When offices and gyms are reliably open again, will companies dial back the work-from-home options?
Today, hybrid solutions are proving popular amidst worries that fully distributed teams suffer from lower levels of collaboration and communication between colleagues, and that innovation could be stifled by lack of in-person collaboration.
Of course, employees themselves are reporting being more productive and happy at home, with 98% of people wanting the option to work remotely for the rest of their careers.
It’s clear that the culture of work is undergoing an evolution today, and companies and employees will continue to seek the perfect balance of productivity and happiness.
Print Has Prevailed: The Staying Power of Physical Books
When e-books hit the mainstream in the early 2000s, many predicted they’d eventually make print books obsolete. So far, that prediction has not come true.
The Staying Power of Print Books
E-books are certainly not a new phenomenon. In fact, they’ve been around longer than the internet.
Yet, while the emergence of e-books dates back to the early 1970s, they didn’t hit the mainstream until the 2000s, when big companies began launching their own e-book readers, and digital libraries started to become more accessible to the public.
Around this time, sales for e-books started to soar, and by 2013, e-book sales made up 20% of all books sales in America. Many wondered if this was the end for print books.
But fast forward to 2021, and e-books haven’t made print books obsolete. At least, not yet.
E-book versus Print Book Purchases
A recent poll found that people still favor print books over e-books, at least when it comes to their purchasing behavior.
Of the 10 countries included in the survey, an estimated 42% of people had purchased at least one print book in 2020, while only 15.5% had bought an e-book that same year.
Here’s a look at all 10 countries, and the estimated share of their population who bought physical versus e-books in 2020:
|🇺🇸 United States||44.5%||22.7%|
|🇬🇧 United Kingdom||48.7%||20.0%|
|🇰🇷 South Korea||34.6%||16.8%|
China had the highest portion of e-book lovers—an estimated 24.4% of its population purchased an e-book in 2020, which is more than 8 percentage points higher than the average across the whole list.
On the other end of the spectrum, e-books are least popular in India, where an estimated 5.6% of the country’s population purchased an e-book in 2020. Keep in mind, the country has a lower percentage of book purchasers in general.
Why Print Has Prevailed
Why are print books still more popular than e-books? There are many theories. One study suggests that readers retain information better from a print book versus an e-book, while other consumer surveys found that e-books haven’t yet managed to fully simulate the tactile experience of a print book.
However, while e-books might not eradicate print books entirely, the market for digital books is expected to grow in the near future. By 2025, global revenue from e-books could reach $18.4 billion, with 1.2 billion users across the globe.
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