The Hindu Business Line : Gold ETFs turn active

Chennai April 19 Akshaya Trithiya, an auspicious day for gold buying according to the Hindu calendar, showered its luck on gold exchange traded funds (Gold ETFs) too. Buying gold is a popular activity on Akshaya Trithya. Now that Indian investors can purchase gold ETFs as a proxy for buying physical gold, the two exchange-listed Gold ETFs saw a spike in volumes that can be directly attributed to this religious occasion.

Benchmark's Gold ETF, which was launched exactly a month ago, saw its traded volumes jumping sharply; it witnessed a volume of 36,561 units on the NSE on Thursday against the average one-month volumes of 9,740 units. This was only the fifth occasion since it's listing that the counter saw its volume recording five-digit number. And more importantly, today the deliverable ratio was also the highest at 78.11 per cent considering only the high trading volumes day.

The Gold BeEs got listed on March 19 at Rs 1,000.30 a unit, or a gram, to Rs 1,104, and closed Rs 947.80 on Day 1. Today, it closed at Rs 951.35.

The three-day-old GoldShares of UTI that made a debut at Rs 950, recorded a volume of 64,996 units out of which 68.22 per cent was presented for delivery on the NSE.

This occasion is being turned into a money-spinner by not just the mutual funds but brokerage outfits too.

Geojit Securities is trying to corner a large chunk of this event-oriented buying of the gold ETFs by offering zero per cent brokerage on purchases of the "Gold BeES" made on April 19 and 20.The company will not charge brokerage for Gold BeES bought for delivery. Other costs, taxes, exchange levies will be charged as applicable.

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