homemarket Newscommodities NewsInvestment in efficient products like gold ETF rising, says Quantum AMC's Chirag Mehta
Investment in efficient products like gold ETF rising, says Quantum AMC's Chirag Mehta
Gold prices have remained volatile in the last week. After hitting a low at $1,675 per ounce, gold has again risen towards $1,780 per ounce. However, investors are opting for more efficient products like gold ETFs and sovereign gold bonds.
Gold prices have remained volatile in the last week. After hitting a low at $1,675 per ounce, gold has again risen towards $1,780 per ounce. However, investors are opting for more efficient products like gold ETFs and sovereign gold bonds.
In an interview with CNBC-TV18's Manisha Gupta, Chirag Mehta of Quantum AMC said that the physical buying in gold has slowed down over the last two years. However, the overall trend suggests that the buying is incrementally moving towards efficient products like gold ETFs, sovereign gold bonds etc.
"We have seen a significant rise in buying in gold ETFs. The number of investors has grown significantly this year as compared to last year. So we are seeing an incrementally good amount of buying. If you look at the flows also, they are all additive," Mehta said.
Also Read: Gold rate today: Yellow metal rises above 47,400 per 10 grams; US Fed policy minutes eyed
Last year, gold ETFs witnessed investments worth Rs 6,900 crore. This year the investment has already touched Rs 1,266 crore despite strong equity markets, he added.
"So if you were to see another crisis or another collapse in markets, I am sure the incremental buying that we are seeing is going to surge again. So the trend is suggesting that there is a move towards more formalisation of the gold market and more efficient products are being bought into," Mehta said.
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(Edited by : Ankit)
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