Ahmedabad: With prices and demand for gold increasing, assets under management (AUM) by gold exchange-traded funds (ETF) for investors in Gujarat hit a record of Rs 342 crore in October.
According to data from the Association of Mutual Funds in India (AMFI), gold ETFs AUM rose by 8% from Rs 316.9 crore in September and 23.86% from Rs 276 crore in October 2022. The previous record for gold ETFs was Rs 337 crore in April last year.
The price of gold hit Rs 64,000 per 10g in the Ahmedabad market on Monday, a six-month high. Analysts attribute the increase in ETF asset value to high gold prices and fresh investments during the festive season.
“If we compare asset classes such as bullion, mutual funds, bank fixed deposits and stocks, gold has by far delivered the greatest returns over the past year. Gold has remained the preferred asset for investors, especially after Covid, as returns were high. Driven by the rally in prices and fresh investments ahead of Diwali, the uptake of gold ETFs remained high,” said Haresh Acharya, director of India Bullion, and Jewellers’ Association (IBJA).
Gold prices have risen by 22% since Diwali last year. Analysts said geopolitical factors have led to the rally in international gold prices over the past year.
“The rise in gold price can be attributed to factors such as inflation, global uncertainty, escalating geopolitical tensions and currency depreciation, among others,” Acharya said.
Across India, assets under management of gold ETFs stood at Rs 26,163 crore this October.
People across India have a penchant for gold. With improved awareness and more digital gold products available, these have seen growing traction in the form of ETFs, sovereign gold bonds (SGB) and gold mutual funds.
Analysts also attribute the traction in gold ETFs to the returns on sovereign gold bonds.
“On November 30, the first tranche of SGB investments will mature. As the Reserve Bank of India (RBI) recently announced the final redemption price of the first ever tranche, SGB-2015, investors have got returns of up to 128%, excluding interest earned on SGBs. These returns and the strong performance of gold have led to renewed traction,” said Jayesh Vithalani, an Ahmedabad-based financial consultant.
“A growing number of young investors are choosing digital gold over physical gold for investment purposes,” Vithalani added.
We also published the following articles recently
According to data from the Association of Mutual Funds in India (AMFI), gold ETFs AUM rose by 8% from Rs 316.9 crore in September and 23.86% from Rs 276 crore in October 2022. The previous record for gold ETFs was Rs 337 crore in April last year.
The price of gold hit Rs 64,000 per 10g in the Ahmedabad market on Monday, a six-month high. Analysts attribute the increase in ETF asset value to high gold prices and fresh investments during the festive season.
“If we compare asset classes such as bullion, mutual funds, bank fixed deposits and stocks, gold has by far delivered the greatest returns over the past year. Gold has remained the preferred asset for investors, especially after Covid, as returns were high. Driven by the rally in prices and fresh investments ahead of Diwali, the uptake of gold ETFs remained high,” said Haresh Acharya, director of India Bullion, and Jewellers’ Association (IBJA).
Gold prices have risen by 22% since Diwali last year. Analysts said geopolitical factors have led to the rally in international gold prices over the past year.
“The rise in gold price can be attributed to factors such as inflation, global uncertainty, escalating geopolitical tensions and currency depreciation, among others,” Acharya said.
Across India, assets under management of gold ETFs stood at Rs 26,163 crore this October.
People across India have a penchant for gold. With improved awareness and more digital gold products available, these have seen growing traction in the form of ETFs, sovereign gold bonds (SGB) and gold mutual funds.
Analysts also attribute the traction in gold ETFs to the returns on sovereign gold bonds.
“On November 30, the first tranche of SGB investments will mature. As the Reserve Bank of India (RBI) recently announced the final redemption price of the first ever tranche, SGB-2015, investors have got returns of up to 128%, excluding interest earned on SGBs. These returns and the strong performance of gold have led to renewed traction,” said Jayesh Vithalani, an Ahmedabad-based financial consultant.
“A growing number of young investors are choosing digital gold over physical gold for investment purposes,” Vithalani added.
We also published the following articles recently
Wedding sales hit as gold price touches all-time high of 63,250
Gold buying in Kolkata for the upcoming wedding season has hit a hurdle due to the record high price of Rs 61,540 per 10 grams. The increasing gold price has led to lower footfall and prompted people to gift other lifestyle goods at weddings. The price of 24-carat gold has increased by Rs 3,170 in the past six months, influenced by the Russia-Ukraine war and the Israel-Hamas conflict. The commodity market expects both gold and silver to remain strong due to the weakening rupee and the anticipation of a higher interest rate by the US federal reserve to counter inflation. The spike will impact sales for the next wedding season, with buyers possibly compromising on the amount of gold purchased. Some people are opting to buy holiday packages as gifts instead of gold, which has affected sales. However, there is hope that gold rates will stabilize by the middle of next year.
Gold buying in Kolkata for the upcoming wedding season has hit a hurdle due to the record high price of Rs 61,540 per 10 grams. The increasing gold price has led to lower footfall and prompted people to gift other lifestyle goods at weddings. The price of 24-carat gold has increased by Rs 3,170 in the past six months, influenced by the Russia-Ukraine war and the Israel-Hamas conflict. The commodity market expects both gold and silver to remain strong due to the weakening rupee and the anticipation of a higher interest rate by the US federal reserve to counter inflation. The spike will impact sales for the next wedding season, with buyers possibly compromising on the amount of gold purchased. Some people are opting to buy holiday packages as gifts instead of gold, which has affected sales. However, there is hope that gold rates will stabilize by the middle of next year.
Babu breaks record to win gold in Nepal
Babu Gaonkar won gold in the senior category of UIPM Global Laser Run City Tour 2023 with a record-breaking time. He made his debut for India and finished on top in the laser run category. Ramin Ahmedi won silver while Ram Bahadur settled for bronze. Shivnath Majik won silver in the junior category, finishing behind Rahul Darshan and ahead of Amrut Jong Dang. Babu was among three Goans who represented India in the event.
Babu Gaonkar won gold in the senior category of UIPM Global Laser Run City Tour 2023 with a record-breaking time. He made his debut for India and finished on top in the laser run category. Ramin Ahmedi won silver while Ram Bahadur settled for bronze. Shivnath Majik won silver in the junior category, finishing behind Rahul Darshan and ahead of Amrut Jong Dang. Babu was among three Goans who represented India in the event.
72 sovereigns of gold jewellery stolen from house near Madurai
Burglars broke into the house of a paint shop owner near Nagamalai Pudukottai in Madurai district and escaped with 72 sovereigns of gold jewellery. S Rameshkannan, 54, of Venkatachalapathi Nagar, Thuvariman, is running a paint shop at KK Nagar in Madurai city. On November 23, Rameshkannan stayed in his house in Thuvariman and then left for KK Nagar the following day. Gold jewellery weighing 72 sovereigns and a few silver items were stolen. The Nagamalai Pudukottai police registered a case and were investigating.
Burglars broke into the house of a paint shop owner near Nagamalai Pudukottai in Madurai district and escaped with 72 sovereigns of gold jewellery. S Rameshkannan, 54, of Venkatachalapathi Nagar, Thuvariman, is running a paint shop at KK Nagar in Madurai city. On November 23, Rameshkannan stayed in his house in Thuvariman and then left for KK Nagar the following day. Gold jewellery weighing 72 sovereigns and a few silver items were stolen. The Nagamalai Pudukottai police registered a case and were investigating.
