InvestorQ : With gold prices rising globally and in India, how are gold ETFs doing right now in India?
Debbie Mascarenhas made post

With gold prices rising globally and in India, how are gold ETFs doing right now in India?

Answer
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Crowny Pinto answered.
7 months ago


Yes of course, gold ETFs are picking up once again, although it is not even a patch on what we saw in 2012 and 2013. At least, investors are taking out their shopping baskets and again buying Gold ETFs. The total AUM of the Gold ETFs at Rs.6200 crore is still half of the level of Rs.12,300 crore that the gold ETF AUM touched in January 2013. However, there is some good news in Jan-20 as per AMFI data. The good news is that for the month of January, the gold ETF saw a sharp spike in AUM by Rs.220 crore; the best monthly inflow in nearly 7 years. The inflows into gold ETFs are driven by the rising price of gold and also as a hedge against the volatility of equities. The Chinese virus scare has positioned gold as a safe haven asset. However, it has been seen in the past that the moment interest in equity revives, Indian investors tend to dump gold for equity and equity MFs.