look news india
Mumbai: In the absence of Sovereign Gold Bonds (SGBs), gold exchange traded funds (ETFs) have seen inflows in the first nine months of the current year, more than double what was seen in the entire last year.
As per the data received, a total inflow of Rs 7367 crore has been seen till September of the current calendar year as against a total of Rs 2919 crore in 2023.
In view of the unprecedented rise in gold prices, the government's calculations behind issuing SGBs have gone awry. Only one SGB series was released in the current year while a total of four series were released in 2023.
Investors are also turning to gold ETFs after the announcement of early redemption of SGBs completing five years in August.
Gold prices are currently seeing a surge as a result of geopolitical tensions and widespread purchases of gold by global central banks. Gold is considered a safe investment in times of war and inflation.
In the financial year 2024, investors were given a return of more than 21 percent on investment in gold ETFs.
The AUM of India's gold ETFs stood at Rs 39,824 crore at the end of September, reflecting the growing attraction of investors towards gold in the country. There are currently 17 gold ETFs running in the country. Amidst the uncertain economic environment, investors prefer to invest in gold compared to other asset classes.