InvestorQ : How have been the flows into gold ETFs, in the midst of the gold price rally?
Moii Chavate made post

How have been the flows into gold ETFs, in the midst of the gold price rally?

Answer
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Sam Eswaran answered.
2 months ago


Although gold ETF investing in India is nowhere close to what it has been in Western nations, it is surely building up. For example, gold ETFs saw net inflows of Rs.3500 crore in the Jan-Jun 2020 period. This has been largely to hedge the risk of equities and also to participate in one of the best performing asset classes over the last one year.

In fact, from August 2019, gold ETFs received net inflows of Rs.3723 crore. A better picture is available if you look at it month-wise. In Jan-20 the gold ETF inflows were Rs.202 crore, Feb-20 it was Rs.1483 crore but outflows were seen to the tune of Rs.195 crore in Mar-20. Inflows resumed in April at Rs.731 crore, May at Rs.815 crore and June at Rs.494 crore.

Gold functions as a strategic asset class in an investor's portfolio and it can be a solid and effective diversifier in the midst of volatile times. The gold prices have scaled close to the highs of September 2011 and most of the global players like Goldman Sachs and Morgan Stanley are pegging the price of gold at closer to $3000/oz by the end of 2021.