Golden Opportunities

Consider this, despite a dwindling global demand, gold-backed Exchange Traded Funds (ETFs) broke all records, emerging as a safe haven during crisis. For the month of July 2020, the Indian Gold ETFs recorded a massive net inflow of `921.19 crore against the `494.23 crore in June, registering a stellar growth of 86 per cent shows the data by Association of Mutual Funds in India (AMFI). This year so far, Gold ETF category has received a net inflow of `4,451.9 crore. (See the table: Gold ETF) The World Gold Council (WGC), in its July report had stated that the first half (H1) of world gold demand was down by 6 per cent at 2,076 tonnes (t). Interestingly despite the global demand being down, the inflows into Gold ETFs recorded a breaking 734t. indicating the H1 inflows have even surpassed the 2009 annual record of 646t. So, what factors led to this trend where massive inflow in Gold ETF in...