- Global gold crosses 2700 dollars, domestic bullish as rupee weakens
Bullion market continues to be bullish. With gold crossing $2,700 in the international market, the rupee weakened further against the dollar in the forex market, touching 84.07 by Rs.300 per 10 grams to a new high of Rs.79,300 at Ahmedabad. While silver was maintained at Rs.92000 per kg. Bullion analysts are predicting gold to touch Rs 80000 before Diwali and silver to touch Rs 1 lakh before Christmas. Gold's aggressive rally has also led to attractive returns for investors in gold ETFs. Investors in gold ETFs have received an average return of 29 percent in one year, 17 percent in the last three years and 13.6 percent in five years.
Gold ETF is a passive mutual fund scheme. Which invests in 99.5% pure gold. This tracks the price of gold in the local market. Nippon India ETF Gold BES, HDFC Gold ETF and SBI Gold ETF are the top-3 gold ETFs in the country in terms of assets. But LIC FM's Gold ETF tops in terms of returns according to rating agency Icra. It has returned 30% in one year, 17.50% in three years and 14% in five years.
Physical gold returns slightly higher The Icra report says that those who invested directly in gold (physical gold) had slightly higher returns than gold ETFs. For example, physical gold gave an average return of 30% in one year, 18% in three years and 15% in five years. It may increase till Dhanteras. The demand for gold SPDR traded funds, ETFs and investors has opened due to the fear of political instability in the elections to be held in the month of November in America.
Gold ETF's AUM grew sevenfold in five years Investors' enthusiasm for gold ETFs in the country continues to grow, which is indicative of the rise in their Assets Under Management (AUM). Their AUM has grown sevenfold in the last five years. In September 2019, AUM of gold ETFs stood at Rs. 5613.22 crore which has increased to Rs.39,823.50 crore in September 2024. Physical gold returns slightly higher The Icra report says that those who invested directly in gold (physical gold) had slightly higher returns than gold ETFs. For example, physical gold gave an average return of 30% in one year, 18% in three years and 15% in five years.
Investments in gold ETFs rose 88 percent this year
- Gold ETFs have been very attractive this year. So far investments in it have grown by an average of 88%
- In January Rs. 657 crore in September against an investment of Rs. 1233 crore investment was recorded
- Gold has rallied since the US interest rate cut to 0.50%
- Gold price may touch 80000 by Dhanteras which will increase ETF returns.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
