InvestorQ : Is it true that Indian investors are increasingly investing in gold?
rhea Babu made post

Is it true that Indian investors are increasingly investing in gold?

Answer
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3 weeks ago


It would not be wrong to say that there is a virtual gold rush among investors in India. Just look at the data. In the first five months of the fiscal year between April and August 2020, investors bought Rs.10,130 crore of Sovereign Gold Bonds from the gold bond series.

In addition, they also infused close to Rs.3900 crore into gold ETFs as per data put out by AMFI. If you add these up, it means that Rs.14,000 crore of investor money has actually gone into non-physical gold investments during the first five months of this fiscal year.

Things become a lot clearer when you compare this with the corresponding period last year when the total inflow into gold was just about Rs.5700 crore. This is happening despite the fact that gold prices have been at a peak in Indian markets as well as global spot markets.

The consistent loosening of monetary policy by central banks, COVID uncertainty and the ongoing trade war between the US and China has created renewed demand for gold as an asset class. Investors are increasingly buying gold to hedge portfolio risk.