Sign In
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
Kolkata: Data of the mutual fund industry for June 2025 revealed by AMFI (Association of Mutual Funds in India) has revealed a surging tide of investments in gold exchange traded funds. The price of gold has reached the dizzying heights of Rs 1 lakh per 10 gms but has climbed down a bit after the cessation of hostilities between Israel and Iran. A report by ICICI Bank Global Markets has said that the price of the yellow metal is expected to experience an upward pressure in the second half of this calendar year and reclaim the psychologically crucial mark of Rs 1 lakh per 10 gms.
Though the price of gold inched down in the global markets, the price of the safe-haven metal rose 0.6% in June, reports said. One of the catalyzing factors was the value of the rupee declining by 0.2% against the US Dollar.
The northward march in the price of gold triggered robust investor interest in June, a month when the net inflow in gold ETF was recorded at Rs 2,080.85 crore, which is the peak since January this year. The rise was dramatic compared to where it stood in May -- a mere Rs 291.91 crore in May.
Volatility in the equity markets and resilient gold prices pushed a large number of investors towards gold. The continuing geopolitical and trade-related uncertainties continued to add momentum. As a result, despite the record price levels, net inflows in gold ETFs this year have crossed Rs 8,000 crore.
The first condition to invest in gold ETFs is that the investor must have a demat account. Gold ETFs are listed on stock exchanges and, therefore, one needs a demat account to buy or sell ETFs. There are more than a dozen gold ETFs in the country.
Gold ETFs closely track the price of physical gold in the market. Therefore, any rise or fall in gold prices is closely reflected in the price of gold ETFs. The advantage of investing in a gold ETFs is that since these are in dematerialized form, there is no headache to ensure safekeep of these instruments unlike metallic gold. It is far more convenient compared to gold jewellery as no making charges are deducted from ETFs unlike jewellery.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.)
