Which is the Best Gold ETF in India?

[parth.sab]

I have already invested in Gold Bees :thumb:

 

[sumit.kalra]

Yes,

I think Gold BeEs is the best option.

 

[blitz2280]

Also go for the one which has highest liquidity (read volumes) Gold Bees is usually traded well.

brainz

Many people have mentioned the advantage of buying a Gold ETF fund having more volume as Liquidity will be high.

I do not think so. Gold ETF is like a mutual fund, the price is fixed by the Institution which is managing that fund. And buy/sale of the gold ETF happens between the investor and the institution.

So even if one day maybe the volume is 10 times the usual volume, there will be no change in the price and everybody will get the required units, as the institution bringing out the ETF will simply issue some more units to the market.

In the same way even if everyone wants to sell there Gold ETF the price will not fall. The institution will accept back their certificate from everybody at the price on that day.

ETF in India are a very small part of the Global trading market on Gold. So our actions will not impact world gold price. Which means that our action will not impact the price of Gold ETF held by us.

Please tell if I have understood the s/m incorrectly.

 

[devangbadiyani]

HDFC GOld ETF Launch
http://www.docstoc.com/docs/44274509/Hdfc-Gold-Exchange

is it good ?

 

[sln1941]

Many people have mentioned the advantage of buying a Gold ETF fund having more volume as Liquidity will be high.

I do not think so. Gold ETF is like a mutual fund, the price is fixed by the Institution which is managing that fund. And buy/sale of the gold ETF happens between the investor and the institution.

So even if one day maybe the volume is 10 times the usual volume, there will be no change in the price and everybody will get the required units, as the institution bringing out the ETF will simply issue some more units to the market.

In the same way even if everyone wants to sell there Gold ETF the price will not fall. The institution will accept back their certificate from everybody at the price on that day.

ETF in India are a very small part of the Global trading market on Gold. So our actions will not impact world gold price. Which means that our action will not impact the price of Gold ETF held by us.

Please tell if I have understood the s/m incorrectly.

I don't think that Gold ETF or any other ETF is bought and sold like MFs on the basis of NAV or a price fixed by the MF. It is just like any stock where the product is traded on the basis of bid and offer and hence the market determines the value of the unit. Exchange traded Fund is so called because you trade in the exchange. Mr. Nikrod or some senior members can clarify for authoritative interpretation.

S.Lakshminarayanan

 

[sln1941]

HDFC GOld ETF Launch
http://www.docstoc.com/docs/44274509/Hdfc-Gold-Exchange

is it good ?

I don't know if anyone can authentically say if HDFC ETF will be good or not. My view is that though HDFC is a well known and proven organisation it will still be a trial for now. It will be trial because there is already one proven performer in Benchmark MF Gold ETF. Why take a chance now ?
I would rather prefer to invest in Benchmark Gold ETF for now and wait to see the performance of HDFC Fund as no advantage seems to be there in choosing that Fund.

S.Lakshminarayanan

 

[alroyraj]

Many people have mentioned the advantage of buying a Gold ETF fund having more volume as Liquidity will be high.

I do not think so. Gold ETF is like a mutual fund, the price is fixed by the Institution which is managing that fund. And buy/sale of the gold ETF happens between the investor and the institution.

So even if one day maybe the volume is 10 times the usual volume, there will be no change in the price and everybody will get the required units, as the institution bringing out the ETF will simply issue some more units to the market.

In the same way even if everyone wants to sell there Gold ETF the price will not fall. The institution will accept back their certificate from everybody at the price on that day.

ETF in India are a very small part of the Global trading market on Gold. So our actions will not impact world gold price. Which means that our action will not impact the price of Gold ETF held by us.

Please tell if I have understood the s/m incorrectly.

While it is true that all ETFs invest in Gold,just demand and suppy of the particular ETF in question need not be the only reason for fluctuation in tracking the underlying Gold price.
The other thing to consider is the tracking error that occurs due to costs associated with managing the fund. Other factors like dividend etc which also contribute to tracking error may not be relevant here.

 

[jradha]

I suggest you to invest in eGold & eSilver thatn Gold ETFs. eGold & eSilver is offered by National Spot Exchange (NSEL), which is trust worthy. No need for commodity demat account, with ordinary demat account it can be purchased. only restriction your broking house should have tie up with NSEL, pls check with ur broker.


http://www.nationalspotexchange.com/eseries.htm

I did some research on these. Maina dvantages:

1) Physical delivery of Gold is not is avaialble with ETF. but NSEL does physical delivery of Gold in major cities with 99.99% purity. It is your choice physical gold/money.

2) EFT normally has around 2.5% as annual maintenance, It is included in ETF NAV calculation. whereas only 60 paise annally charged for eGold 1gram/year, its negligible.

 

[stockwatch871]

For more informations on this you can also refer gold.org...this is also good site

 

[sumosanammain]

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