Exchange Traded Funds(ETF)-FAQ's
World of Finance by M.Vijaya Sai 1. Will gold ETF finally become part of the Indian investors' portfolio? India is one of the biggest gold markets in the world. Last year, gold worth Rs 70,000 crore (Rs 700 billion) was traded in India. However, the stipulate is now shifting from jewellery towards investment . Nearly 5 years ago, demand for jewelery was 90% and demand for gold as an investment only 10% of the total trade. Investment in gold has picked up and has reached 30%. Gold worth Rs 20,000 crore (Rs 200 billion) per annum is being sold in the figure of coins, biscuits or bars, while a lot of people are buying from banks. Banks have started selling gold in the precedent five years. Leading jewelers sell pure gold. There is an investment demand of Rs 20,000 crore for the gold. But when you go to the jeweler or the bank to buy gold coins, you have to pay 5-7% premium. When you go to a jeweller to sel...