Monday, November 12, 2012

Gold ETF volumes on the rise on occasion of Dhanteras

Lot of Hindus consider buying gold auspicious on the occasion of Dhanteras. Gold has also performed very well over the last 5 years so it is an asset class preferred by many investors.

On the occasion of Dhanteras, investors or retail investors used to invest in physical gold like gold coins, bars , jewelry etc. However, oflate the trend is changing with lot of investors investing in Gold ETF. Even though Dhanteras fell on Sunday, an exchange holiday, the exchanges - NSE and BSE held a special trading session  between 11 AM to 3:30 PM on Sunday to give an opportunity to investors to invest in Gold ETF and give the traditional jewelers some competition. Not only that, the exchanges also waived off the transaction charges for all trades in gold ETFs to cash in on the investor demand.

The total traded value of gold ETF on the NSE stood at a record value of Rs 1,337 crore, while the BSE recorded a turnover of Rs 894.55 crore. In terms of volume, the number of gold ETF units traded went up by 81 per cent to 4,441 kg on the NSE over the same day last year. BSE's total traded volumes in the segment surged by 1,391 per cent over last year to Rs 894.49 crore on the occasion of Dhanteras indicating investors rising interest both in Gold as an asset class and Gold investment in DEMAT form rather than physical form.

We had done a post earlier to compare Gold ETF against physical gold: http://www.myfamilyinvestment.com/2010/11/gold-coins-vs-gold-exchange-traded.html. Have a look at it and let us know your comments!


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