Gold, Silver ETF Volumes Up 5-Fold In Dhanteras Compared To Last Year

This Dhanteras, the popularity of investing in gold and silver has significantly shifted toward digital formats, with a notable increase in exchange-traded funds (ETFs). The demand for gold and silver ETFs and fund of funds (FoFs) surged, with estimated combined net inflows of around Rs 250 crore, as revealed by assets under management (AUM) data.

On the National Stock Exchange (NSE), the trading volumes of gold and silver ETFs quintupled compared to last year’s Dhanteras, totaling Rs 428 crore this year, up from Rs 89 crore previously. Nippon India Mutual Fund’s gold and silver ETFs, which are the largest in the market, contributed Rs 228 crore to this volume.

Interest in these ETFs has surged in recent months, driven by rising commodity prices, a reduction in customs duty on gold, and changes in taxation. The lack of new issuances of sovereign gold bonds (SGBs) has also favored mutual fund offerings. Net inflows into gold ETFs have exceeded Rs 1,000 crore over the past three months, accumulating to a total of Rs 4,181 crore.

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