Gold ETF outlook bullish! Know here how to invest in this instrument

Gold ETF has seen great traction over the last few months and in August alone, this instrument has seen investments worth Rs 900 cr. This is the fifth straight month to see a rise in investments. The reason behind this is because of the price of this precious metal has appreciated significantly during the period. The investment is also considered safe. If you want to know the outlook and how to invest in Gold ETF, here is your guide!   

There is a paradigm shift in Gold investments now after the introduction of paper gold or gold in demat form as it has become very easy to invest in gold, Ravindra Rao, head of commodity research at Kotak Securities said. He said that the investment in Gold ETFs will likely continue, going forward.  

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This instrument has lent liquidity and also ensured ease of transaction and is therefore being increasingly preferred now, Rao said adding that it is easy to sell Gold ETF and come out of the investment. 

Gold has seen an upward move over the last two years coupled with the existing uncertainty. This has led to diversification in investment portfolio. 

Around 10-15 per cent of portfolio accounts for gold investments and till the time this uncertainty continues, investment in Gold ETF is expected to grow, he said. 

The view on Gold is also bullish going forward, he further said. 

Gold ETFs can be purchased on stock exchanges and are available in different denominations, Chirag Mehta of Quantum Gold ETF said. It can be 1 gm or 0.5 gm which are relatively small denominations. Investors can buy a single unit.  

He further said that there are no issues related to liquidity or purity of the gold at the time of delivery unlike in the physical gold. This instrument is very price efficient. He expects Gold ETF investment to grow.  

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After a dull beginning on Wednesday, the MCX Gold prices saw some movement gaining by Rs 200 in an intraday trade hitting the Rs 52000 levels while Silver crossed Rs 69000.