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Time of India
15-05-2025
- Business
- Time of India
Gold ETFs down up to 14% from peak. Is the best of yellow metal bull run over?
After a strong rally that saw gold prices hitting record highs earlier this year, Gold Exchange Traded Funds ( ETFs ) have corrected up to 14% from their recent peaks, prompting investors to question whether the bull run in the yellow metal is over or not. An analysis of data showed that SBI Gold ETF corrected the most by around 14% from its 52-week high level, followed by 360 One Gold ETF and Tata Gold ETF, which are down by around 12% each from their 52-week high level. Also Read | MF Tracker: Can this smallcap mutual fund add value to your portfolio? Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Around seven gold-based ETFs were down by 7% from their peak which includes LIC MF Gold ETF, Groww Gold ETF, Mirae Asset Gold ETF, HDFC Gold ETF , and Edelweiss Gold ETF. Kotak Gold ETF and DSP Gold ETF were down by 6% each from their peak, and lastly, Zerodha Gold ETF dropped by 5% from its peak. Live Events An expert believes that during uncertain periods, gold performs well as investors consider it a safe haven, and the past five years have seen a lot of volatility, starting with the pandemic and then, the geopolitical tensions concerning Russia-Ukraine, Israel-Hamas, and now India and Pakistan across the border have firmly pushed prices upward. 'They would usually be normalised upon the diffusion of those fears and the stabilisation of global sentiment. Prices are now dipping simply owing to this releasing-off effect after a strong rally, which for some time had even outshined long-term equity returns.' commented Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance. According to a report by ET, on Wednesday, gold and silver settled on a weak note in the domestic and international markets. Gold and silver prices were unable to hold their previous sessions gain and plunged again amid easing safe-haven demand due to US-China trade negotiations and major risk aversion in the global financial markets. The U.S. and China trade negotiations changed bullion markets sentiments and traders and investors are unwinding their long positions and booking profits, the report further added. In the last nine months, gold ETFs have offered upto 32.37% return with UTI Gold ETF being the topper, followed by Invesco India Gold ETF which has offered 31.68% return. Nippon India ETF Gold BeES, the largest gold ETF, offered 31.24% return. Edelweiss Gold ETF gave the lowest return of around 31.08% return. Also Read | Mutual funds use inflows to stuff another Rs 17,300 crore in their cash bag These ETFs gave upto 28.69% return in the last one year with UTI Gold ETF being the topper. LIC MF Gold ETF gave the lowest return of around 27.94% in the last one year. The expert firmly mentions that the recent dip doesn't mean the rally has necessarily completely ended-the gold remains topical as a long-term hedge and it is one investment that should be in a diversified portfolio rather than a core growth asset. 'One option is the ETFs, but investors can also take the flexible route like multi-asset funds-that adjust allocational emphasis based on market perception. Overall it can constitute about 8 to 10% of the total portfolio,' Minocha added. Gold ETFs are exchange-traded funds that track the price of physical gold. Each unit of a Gold ETF is backed by a specific quantity of gold, usually equivalent to one gram. They are listed on stock exchanges, and you need a demat and trading account to buy and sell them. If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
29-04-2025
- Business
- Economic Times
Gold's comeback: Why the world is turning to the yellow metal in 2025
Live Events 1) US-China tariff negotiations 2) Confidence in the US dollar 3) Fed autonomy & US interest rates What do North America, Europe, and Asia have in common right now? Well, apart from unnerving stock market volatility, it's their preference for gold. According to data from the World Gold Council, flows into Gold Exchange Traded Funds from these regions touched $21 billion in Q1 2025 — the largest quarterly inflow since the first quarter of the many economic and geopolitical differences between the regions, investors seem to agree on one thing — the relevance of gold in investment portfolios . And they have good reason recap, President Trump' s aggressive trade policies have stoked inflationary and recessionary fears in the United States, as well as world over, as disrupted supply chains and trade relations are expected to put upward pressure on commodity prices and hurt trade and commerce. Stock markets have sharply corrected in such equity market upheavals trigger a flow of investor money into the US dollar, US government bonds and gold which are considered relatively stable avenues to park funds. But this time, considering the policy uncertainty and grim economic outlook in the US, investors have been shunning US based assets and opting for gold and other leading international currencies and bonds. The result has been the remarkable ~25% rally in gold prices since the start of this calendar year - which has not only been rewarding from a returns perspective but has also cushioned multi-asset portfolios from sharp with Akshaya Tritiya 's gold-buying tradition around the corner, the question is what next for gold? Has gold run up too much and is a correction on the cards? Or is the outlook still promising? Well, three key global factors are set to impact international gold prices and in turn domestic gold prices in the near to medium term:With the two largest economies embroiled in a tit for tat trade war, a mutually beneficial trade deal will not be easy to arrive at. If unexpectedly productive negotiations ease tensions, gold prices may face pressure in the short run. But if there is a prolonged period of friction or if talks collapse and tensions escalate, risk sentiment will be hurt, stock markets may tumble and gold will continue to United States has been the leader of the liberal, globalized world. But that seems to be changing with the country, under Mr Trump's presidency, opting out of geopolitical partnerships, international cooperation agencies as well as free trade agreements. This has put a question mark on the US's and thus US dollar's decline in confidence has been underway since the Russia-Ukraine war broke out and led the US to freeze Russia's US-based assets. This made other countries nervous about holding reserves in the form of US assets and resulted in a strategic change to diversify reserves away from the US dollar and into central banks have bought over 1,000 tonnes of gold for three consecutive years since 2022, and the buying momentum is strong in 2025 too, creating a structural tailwind for gold prices. If policy making in the US continues to increase trust deficit, dollar assets held by foreigners may leave US shores where gold can be one of the US central bank - the Federal Reserve - which determines US interest rates is in a tricky spot. With higher tariffs on imported goods, inflation in the US is expected to go up. At the same time, expectation of higher prices is likely to slow down consumption of goods and services and the policy uncertainty is expected to weigh on business sentiment – both slowing down the the Fed were to cut interest rates now, inflation could get fired up on the back of lower borrowing costs. But lower borrowing costs are needed to support consumption and business investment and avoid a US recession. With President Trump pressuring the Fed to cut rates, Fed independence is in question, and lower US interest rates and thus potentially higher US inflation are on the horizon – both being bullish for non-yielding while gold has taken a breather for now, fundamentals are looking supportive of gold and investors would do well to buy the dip this Akshaya Tritiya. A 10-15% portfolio allocation to Gold Exchange Traded Funds or via the Gold Savings Fund is ideal to navigate this complex geopolitical and macroeconomic environment, marked with equity market volatility. Because as POTUS recently said, 'he who owns the gold makes the rules.'(Author of the article is Chirag Mehta , CIO at Quantum AMC): Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
29-04-2025
- Business
- Time of India
Gold's comeback: Why the world is turning to the yellow metal in 2025
What do North America, Europe, and Asia have in common right now? Well, apart from unnerving stock market volatility, it's their preference for gold. According to data from the World Gold Council, flows into Gold Exchange Traded Funds from these regions touched $21 billion in Q1 2025 — the largest quarterly inflow since the first quarter of 2022. #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" Despite the many economic and geopolitical differences between the regions, investors seem to agree on one thing — the relevance of gold in investment portfolios . And they have good reason to. To recap, President Trump' s aggressive trade policies have stoked inflationary and recessionary fears in the United States, as well as world over, as disrupted supply chains and trade relations are expected to put upward pressure on commodity prices and hurt trade and commerce. Stock markets have sharply corrected in response. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Man Revealing His Strategy To Earn 3K-5K Daily Income thefutureuniversity Learn More Undo Usually, such equity market upheavals trigger a flow of investor money into the US dollar, US government bonds and gold which are considered relatively stable avenues to park funds. But this time, considering the policy uncertainty and grim economic outlook in the US, investors have been shunning US based assets and opting for gold and other leading international currencies and bonds. The result has been the remarkable ~25% rally in gold prices since the start of this calendar year - which has not only been rewarding from a returns perspective but has also cushioned multi-asset portfolios from sharp drawdowns. Now with Akshaya Tritiya 's gold-buying tradition around the corner, the question is what next for gold? Has gold run up too much and is a correction on the cards? Or is the outlook still promising? Well, three key global factors are set to impact international gold prices and in turn domestic gold prices in the near to medium term: Live Events 1) US-China tariff negotiations With the two largest economies embroiled in a tit for tat trade war, a mutually beneficial trade deal will not be easy to arrive at. If unexpectedly productive negotiations ease tensions, gold prices may face pressure in the short run. But if there is a prolonged period of friction or if talks collapse and tensions escalate, risk sentiment will be hurt, stock markets may tumble and gold will continue to benefit. 2) Confidence in the US dollar The United States has been the leader of the liberal, globalized world. But that seems to be changing with the country, under Mr Trump's presidency, opting out of geopolitical partnerships, international cooperation agencies as well as free trade agreements. This has put a question mark on the US's and thus US dollar's hegemony. This decline in confidence has been underway since the Russia-Ukraine war broke out and led the US to freeze Russia's US-based assets. This made other countries nervous about holding reserves in the form of US assets and resulted in a strategic change to diversify reserves away from the US dollar and into gold. Global central banks have bought over 1,000 tonnes of gold for three consecutive years since 2022, and the buying momentum is strong in 2025 too, creating a structural tailwind for gold prices. If policy making in the US continues to increase trust deficit, dollar assets held by foreigners may leave US shores where gold can be one of the beneficiaries. 3) Fed autonomy & US interest rates The US central bank - the Federal Reserve - which determines US interest rates is in a tricky spot. With higher tariffs on imported goods, inflation in the US is expected to go up. At the same time, expectation of higher prices is likely to slow down consumption of goods and services and the policy uncertainty is expected to weigh on business sentiment – both slowing down the economy. If the Fed were to cut interest rates now, inflation could get fired up on the back of lower borrowing costs. But lower borrowing costs are needed to support consumption and business investment and avoid a US recession. With President Trump pressuring the Fed to cut rates, Fed independence is in question, and lower US interest rates and thus potentially higher US inflation are on the horizon – both being bullish for non-yielding gold. So, while gold has taken a breather for now, fundamentals are looking supportive of gold and investors would do well to buy the dip this Akshaya Tritiya. A 10-15% portfolio allocation to Gold Exchange Traded Funds or via the Gold Savings Fund is ideal to navigate this complex geopolitical and macroeconomic environment, marked with equity market volatility. Because as POTUS recently said, 'he who owns the gold makes the rules.' (Author of the article is Chirag Mehta , CIO at Quantum AMC) ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Hans India
22-04-2025
- Business
- Hans India
Spurred by demonetisation, the ‘gold rush' is booming now
In 2016, when the Indian government announced demonetisation in an overnight decision, ₹500 and ₹1,000 notes were no longer valid. This led to shock and confusion among people and institutions alike. With limited time to deposit or exchange cash, people began looking for ways to protect their money, especially the unaccounted black money. At that precise moment, the most viable option that stood out was going for gold. Indians, known for their traditional attachment to gold, saw the yellow metal as a safe and reliable way to convert currency into value. The result was a rush to buy gold in large quantities. This sudden and large-scale demand created a wave that still influences gold investment trends today. The strong demand for gold during the demonetisation period wasn't just about buying jewellery. Wealthy individuals, business owners, and institutional investors looked for other gold-related options, including Gold Exchange Traded Funds (ETFs), Sovereign Gold Bonds (SGBs), and gold-based mutual funds. Asset Management Companies (AMCs) began to actively promote gold as part of investment portfolios. Fund managers saw gold as a hedge to protect wealth from sudden economic changes or currency risks. It became clear that gold was not just a cultural symbol but a practical investment choice. Presently, we are again seeing a sharp rise in the price and popularity of gold. The price has touched record levels and shot to over ₹90000 per 10 grams in India this month. Internationally, it exceeded $3,400 per ounce. The reasons for this rise are both global and domestic. Global economic uncertainty, including wars, inflation concerns, and changing interest rates in developed countries, has made investors cautious. When investors fear instability, they often turn to gold, which for centuries together, has been considered a 'safe haven' asset. Even when stock markets fall, or currencies weaken, gold tends to hold or increase in value. That is exactly what is being enacted today. Another reason for the rise in its prices is the weakening of the Indian rupee against the US dollar. Since gold is traded internationally in dollars, any drop in the rupee's value makes it more expensive in India. But instead of a slowing down in demand, this has encouraged more people to buy gold. Many Indians see gold as the best bet to protect their savings from inflation and currency depreciation, given that gold often gives better returns than other investments. The government's launch of Sovereign Gold Bonds (SGBs) has played an essential role in making gold investment safer and more productive. SGBs are backed by the Government of India and allow people to invest in gold without keeping it in physical form. These bonds offer an annual interest rate of 2.5 per cent, apart from the increase in gold price. They are also free from capital gains tax if held until maturity. Investors like them because they are secure, easy to buy and sell, and have no risks of theft or loss. Since 2016, the subscription to these bonds has steadily grown, and in the past couple of years, they have seen even higher demand. Another popular option for investors is Gold Exchange Traded Funds (ETFs). These financial products represent physical gold and can be bought or sold on stock exchanges. They are highly transparent and reflect real-time gold prices. Unlike physical gold, there are no worries about purity, making charges or storage. Many investors now prefer Gold ETFs as a more innovative and flexible way to invest in gold. According to data from the Association of Mutual Funds in India (AMFI), gold ETFs saw strong inflows in 2023 and 2024, with individuals and institutional investors showing confidence in these products. At the same time, we are also seeing a rise in the use of gold for loans and mortgages. Banks and non-banking financial companies (NBFCs) offer gold loans at competitive interest rates. It has become a popular way to raise money without selling gold, which stays with the bank or lender as collateral, and returned once the loan is repaid. Such methods are easier and quicker for many households to access credit, especially during emergencies or for small business needs. Even fintech platforms have joined this trend, making gold-backed lending faster and more convenient. The Reserve Bank of India (RBI) has occasionally relaxed rules related to the loan-to-value ratio of gold loans, making it even more attractive for borrowers. Interestingly, another trend gaining popularity is the ability to buy gold through monthly instalments using credit cards or through dedicated gold subscription schemes. Many well-known jewellery brands now allow customers to purchase gold in instalments through EMI. It implies that even those who cannot afford to buy large quantities of gold in one go can still become gold investors. These plans especially appeal to young working professionals, who see gold as jewellery for weddings and festivals and as part of their financial planning. These options have made gold more accessible to middle-class families and retail investors. Several jewellers also run monthly gold-saving schemes where customers can deposit a fixed amount. The accumulated value can be used to buy gold at the end of the savings period, sometimes with bonus benefits or discounts. These schemes are usually promoted during festive seasons like Akshaya Tritiya or Diwali. But beyond cultural reasons, they are now also seen as disciplined investment plans, especially for women and families looking to save regularly. Fund managers across India advise their clients to keep five to 10 per cent of their investment portfolio in gold. It's a significant shift from earlier views, where gold was often treated as an unproductive asset. The experience of demonetisation, the Covid-19 pandemic, inflation fears, and recent global events have made everyone more cautious. In such times, gold shines—not just literally, but financially. Many balanced advantage funds and multi-asset funds now include gold as a core component, offering investors protection against volatility in equity and debt markets. India remains one of the largest consumers of gold in the world. But what is changing is the way Indians are investing in gold. From buying jewellery to investing through digital apps, mutual funds, and government bonds, it is now viewed as a traditional asset and a modern financial tool. What began as a rush during demonetisation has become a strong, steady trend. Today's rise in gold prices and the wide variety of investment options reflect a more profound change in India's financial behaviour. As we look forward, gold will likely remain essential to Indian households and investment strategies. Whether for cultural, emotional, or financial reasons, gold continues to hold its ground. The government and financial institutions must continue to provide safe, transparent, and convenient ways for people to invest in gold. Educating the public about the various gold-related products and their benefits will also help improve financial literacy and inclusion. Demonetisation, per se, was perhaps short-lived, but its long-term impact on the Indian economy and investor mindset is clear. It showed us the importance of having flexible, reliable, and safe avenues to protect and grow our wealth. In that journey, gold has once again proved that it is not just a precious metal but a timeless asset. (The writer is Associate Professor, Program Head, PGDM Banking & Financial Services, Institute of Public Enterprise, Hyderabad)
