Gold – The Shining Metal

Gold , a shining metal and as always in great demand during festive and marriage season in India, is  globally glittering from last one year, resulting great appreciation during this period and is still in SHINE. Commodity Pandits expects further rise in the metals of Gold and Silver.

People used to hold physical gold in form of jewellery and gold biscuits, but at different time, formation and presentation differs and due to security reason metal is taking shape in different format.  Mutual Funds in India launched ETFs (exchange traded fund) equivalent to 1 gram gold and they trade with respect to their launch price and market price of gold.

Now a small investor can trade and accumulate gold units applying SIP investments through these units without the risk of expiry, badla, carry forward system. The above units will come in DP account with only fluctuations of metal movements. The negative part of these gold units is that investors cannot get dividends out of these units.

Recently Mutual Funds have launched to Gold Regular Funds in which any investor has entry/exit/SIP options and as time will pass, mutual funds may pass on the dividends to investors after generating distributable surplus. In this format a small investor may enter with SIP of Rs 1000/- per month as well.

Looking to the changing scenario, NSE (National Stock Exchange) has started giving reports for Exchange Traded Funds. Recently, NSE has issued ETF turnover report on GOLD covering all concerned mutual funds that have launched gold funds.

• Gold Accounted for over 78% of total ETF Turnover on NSE in September’2011

• In September’2011, Gold ETF total turnover went up several times

• Among 11 Gold ETFs the top 3 gold ETF contributed 89.81% of the total trading volumes during the month. The total trading volume for the month was ` 191058.63 lacs and the top 3 securities were GOLDBEES, KOTAKGOLD & RELGOLD.

There were several other records made by Gold ETF trading in September 2011. Download the complete report or check latest Gold schemes here

Source: NSE India press release

Category: Blog, Gold Units