Demand for Gold ETF, Sovereign Gold Bond rises on Dhanteras
Mumbai, Oct 28 (IANS) The demand for Gold Exchange Traded Fund (ETF) and Sovereign Gold Bond (SGB) zoomed on Friday, as investors sought to buy the investment instruments on the auspicious occasion of Dhanteras.
“ETF sales were a bit lower than last Dhanteras, but if you include Gold Sovereign Bonds along with it, the sales in Gold assets this Dhanteras have gone up significantly,” Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services, told IANS.
The segment had increased by 30 per cent till around 5.00 p.m.
According to Devendra Nevgi, Chief Executive of ZyFin Advisors, the Gold ETF and GSB will remain attractive given the uncertainties around global growth.
“Gold will remain an attractive asset in the longer run given the uncertainties surrounding the global growth and unexpected outcome of the US Presidential elections,” Nevgi said.
The key indices — the wider 51-scrip Nifty of the National Stock Exchange (NSE) and the barometer 30-scrip sensitive index (Sensex) of the BSE — had earlier decided to extend the Live trading session in Gold ETF and SGB securities in the equity segment.
Trading in gold ETFs resumed after the closing of the regular market. The trading restarted at 4.30 p.m. and continued till 7.00 p.m.
Gold ETFs are traded on the cash market like any other company stock, and can be bought and sold continuously at market prices. They are passive investment instruments that are based on gold prices and invest in gold bullion.
Meanwhile, sales of physical gold also increased on the auspicious occasion on Dhanteras.
The occasion of Dhanteras is considered to be auspicious for purchase of gold.
‘Dhan’ in Hindi means wealth, and ‘Terah’ means number 13th. Dhanteras is, accordingly, derived to mean the day devoted to wealth that falls on the 13th day of the Krishna Paksha (waning moon period) in the Hindu calendar month of Ashwin.
People seek to usher in wealth into their homes and buy gold, silver and utensils as a sign of good luck on this day. In some parts of the country, people also worship Goddess of Wealth, Lakshmi.