The preference for the
yellow metal continued this Dhanteras though investors preferred instruments like gold
exchange-traded funds (ETFs) and coins over traditional jewellery.
Dhanteras is very important for jewellery markets as it is considered very auspicious for buying gold. Seeing the huge surge in demand, most exchanges held a
special trading session for gold ETFs from 11 am till 3.30 pm on Sunday to mark Dhanteras.
Gold ETF units worth 4,441 kg were traded on Dhanteras (each unit is equal to a gramme of gold), an 81-per cent increase from last year. Total 70,440 investors traded in gold ETF units.
"...recorded the highest-ever traded value on a single day in gold ETFs. The traded value was Rs 1,337 crore at the close of trading today," the National Stock Exchange (NSE) said in a statement.
GOLD ETF
Gold ETF units worth 4,441 kg were traded on the NSE on Dhanteras, an 81-per cent increase from last year
Year-on-year assets under management of gold ETFs has grown by 37 per cent from Rs 8,173 crore last September to Rs 11,198 crore as on September 2012
The biggest advantage is that gold ETFs come with an assured purity of 99.5 per cent and there are no premium charges involved which have to be paid while picking up gold coins or jewellery
|
Last Dhanteras, the NSE had recorded a traded value of Rs 636 crore in gold ETFs. This year's Rs 1,337 crore is a 110-per cent increase from last year's level.
"There has been a
change in the consumer's behaviour. Investors prefer gold ETFs and funds to physical gold. Among asset classes, gold is considered the most robust as it counters the effects of inflation and exchange rate fluctuations. We have seen huge surge in demand for gold ETFs," said Lakshmi Iyer, head, fixed income and product, Kotak Mahindra.
The biggest advantage is that gold ETFs come with an assured purity of 99.5 per cent and there are no premium charges involved, which have to be paid while picking up gold coins or jewellery.
According to NSE, year-on-year assets under management (AUMs) of gold ETFs has grown by 37 per cent from Rs 8,173 crore last September to Rs 11,198 crore as on September 2012.
"High price has hampered gold sales this festive season," said Suresh Hundia, head leading gold trading firm Hundia Exports and former president of Bombay Bullion Association.
"Investors are waking up to idea of investing in gold ETF and funds rather than jewellery. The reason is simple. In last one year, gold ETFs have delivered 29-per cent annualised returns when compared with equities, which have delivered around three per cent returns in the past five years," Sandeep Sikka, CEO, Reliance Mutual Fund, said.
"Anyone who has assets, including gold worth more than Rs 30 lakh, has to pay a 1 per cent wealth tax. However, if an investor buys units of gold ETFs, no wealth tax involved," a senior expert from Angel Brokings said.
In association with Mail Today 
Special 
