Gold ETFs Soar 35% in One Year: A New Route to Investing in Gold
Investors are increasingly turning to gold as an attractive investment option. The data shows that in August, investment in Gold ETFs rose to ₹2,596 crore from ₹1,558 crore in July. This surge is a testament to the growing appeal of gold among investors.
The Gold ETFs have delivered returns of more than 35% over the past year, making them an attractive option for those looking to diversify their portfolios. Chris Wood, Jefferies' global head of equity strategy, believes that gold prices could continue to rise, further fueling interest in these investment vehicles.
Gold ETFs work by tracking fluctuations in gold prices. They can be bought and sold on the BSE and NSE, just like shares, but unlike physical gold, investors do not receive actual metal when they purchase Gold ETF units.
To invest in Gold ETFs, one must open a demat account through their broker. The corresponding amount is deducted from the linked bank account, and the Gold ETF units are deposited into the demat account two days after the order is placed.