Even as gold prices are running high currently, investor demand for gold exchange traded funds (ETFs) will be robust in the Indian market, said S&P Dow Jones Indices (S&P DJI), a global indices player.
According to S&P DJI data, gold holding under gold ETFs in India over the past four quarters has stood at 165 tonnes. This is roughly a fifth of India’s import of gold this year. Over the past four quarters, India has imported 761 tonnes gold, according to World Gold Council figures.
Gold demand in India and China has grown this year more than the five-year average demand growth in these countries. In the US, the growth has declined from the five-year average,” said Gunzberg in a conference call on Tuesday.
“ETF market in India has grown by about 87 per cent since September 2009, while the number of investors has grown by 71 per cent during the same period. There are about 34 ETFs in India with Goldman Sachs , Reliance , Kotak and Motilal among the major players,” said Ghosh.
