InvestorQ : Have gold ETFs demand been picking up in India with gold prices at such a high level?
Dawn Cherian made post

Have gold ETFs demand been picking up in India with gold prices at such a high level?

Answer
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Dilmini Mercia answered.
5 months ago


Gold ETFs in India are yet to pick up despite having such a huge opportunity. This is when global gold ETFs have seen record gold AUM of 3185 tonnes. However, the good news is that the trend is just about picking up in India too. After a gap of nearly 6 years, the inflows into gold ETFs have turned positive in FY20 with the total AUM increasing by 79% on a YOY basis to Rs.7949 crore. However, for a nation where households are sitting on nearly 22,000 tonnes of gold, this kind of AUM for gold funds is just a pittance. From the fiscal year 2013-14 onwards, gold ETFs in India have consistently seen outflows. However, the Indian gold market is extremely price sensitive and that would mean any spurt in buying at the current levels is quite unlikely.