Gold may have experienced turbulent months, when prices plummeted from $2,000. But now, the Royal Mint says investment demand is increasing, especially for gold-backed ETCs.

In a report released last week, HANetf said Royal Mint Physical Gold ETC (RMAU) exceeded $600 million, up 115% year-to-date. This increased its holdings of gold by 169,392,822 units this year.

Analysts note that the primary reasons for strong investment demand are growing inflationary pressures and geopolitical uncertainty due to ongoing hostilities in Ukraine.

Europe was particularly, especially affected since disruptions to the global supply chain sent food and energy prices to record highs. Some economists even say that rising inflation threatens to plunge Europe into recession.

According to HANetf CEO Hector McNeil, gold has become more attractive in recent months because of the economic and geopolitical background. He added that just two years ago they launched The Royal Mint Physical Gold ETC (RMAU), but in such a short period of time, it already exceeds $600 million.

The fund also includes recycled gold as part of its assets. Citing a United Nations report, HANetf said a record 53.6 million tons of e-waste was generated in 2019, and only a sixth was recycled.

ETC gold is stored in the vaults of the Royal Mint.