Gold ETFs shine as investors gear up for Dhanteras 2024

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Gold ETFs Experience Explosive Growth as Investors Seek Safe-Haven Asset and Diversification.

This remarkable growth can be attributed to the increasing popularity of gold as an investment option among investors.

The Rise of Gold ETFs

In recent years, gold ETFs have experienced a significant surge in popularity, with their assets under management (AUM) increasing by over seven-fold in the last five years.

Key Factors Contributing to the Growth of Gold ETFs

Several factors have contributed to the growth of gold ETFs in recent years. Some of the key factors include:

  • Increasing demand for gold as a safe-haven asset: Gold has traditionally been seen as a safe-haven asset, providing investors with a hedge against inflation, currency fluctuations, and market volatility. As investors become increasingly risk-averse, the demand for gold as a safe-haven asset has increased.

    The Rise of Gold ETFs

    In recent years, the demand for Gold ETFs has seen a significant surge. This is largely due to the increasing preference of investors to park their funds in Gold ETFs over physical gold.

    The Allure of Gold ETFs

    Gold ETFs have become a popular choice for investors seeking to diversify their portfolios and hedge against inflation. The reasons behind this preference are multifaceted and compelling.

    Key Benefits of Gold ETFs

  • Liquidity: Gold ETFs offer investors the ability to buy and sell their holdings easily, making them a liquid asset. Transparency: Gold ETFs disclose their holdings and pricing daily, providing investors with real-time information about their investments. Cost-effectiveness: Gold ETFs are often less expensive than buying physical gold, with lower fees and commissions. * Ease of trading: Gold ETFs can be traded on major exchanges, making it easy for investors to buy and sell their holdings.

    The Gold Market in India

    The gold market in India is a significant sector that plays a crucial role in the country’s economy. With a rich history dating back thousands of years, gold has been an integral part of Indian culture and tradition. The country’s affinity for gold is evident in its vibrant gold jewelry industry, which is a major contributor to the country’s GDP.

    Key Statistics

  • India is the second-largest gold consumer in the world, accounting for around 12% of global gold demand. The country’s gold demand is expected to increase by 10% in 2024, driven by the festive season and the government’s import duty cut. The Indian gold market is valued at over $100 billion, making it one of the largest gold markets in the world.

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