Gold ETF Inflows Surge Amidst Economic Uncertainty | 15 Feb 2024
In January 2024, Gold Exchange Traded Funds (ETFs) witnessed a remarkable surge in inflows, reaching Rs 657 crore. This influx contributed to a 1.6% rise in the assets under management (AUM) of gold funds.
- Experts attribute this surge to the enduring appeal of gold as a safe haven and hedge against inflation, particularly amidst ongoing geo-political tensions and elevated inflation in the US.
- Gold ETFs are passive investment instruments representing physical gold which may be in paper or dematerialised form. Each unit of a Gold ETF usually represents a fixed amount of gold, often 1 gram.
- Gold ETFs combine the flexibility of stock investment and the simplicity of gold investments.
- Investing in Gold ETFs entails acquiring gold in an electronic format, allowing individuals to engage in buying and selling activities just like stock trading.
- They offer liquidity and exposure to gold prices without the hassle of owning and storing physical gold.
Read more: Gold Exchange Traded Funds