Even at the current high gold prices, investor demand for gold exchange traded funds (ETFs) would be robust in Indian market, informed global indices player, S&P Dow Jones Indices. As per the data provided by S&P DJI, gold holding under gold ETFs in India over the past four quarters has stood at 165 tonnes.
"We see significant investor interest coming up for gold ETFs in India. Demand for gold varies by region. In India, gold demand has increased from 46% to 55% of world demand," said Jodie Gunzberg, director, commodity indices, S&P Dow Jones Indices.
"Gold demand in India and China has grown more than the five-year average demand growth in these countries. In US, the growth has declined from the five-year average," informed Gunzberg in a conference call with the media on Tuesday.
Speaking on the exchange-traded products in India, Koel Ghosh, head - business development (South Asia) S&P Dow Jones Indices noted that the growth of India's gold ETF market has been robust over the past couple of years.
As per the data compiled by Association of Mutual Funds in India (AMFI), fund inflows in gold ETFs during the last 3 months were recorded at Rs 500 crore.
"ETF market in India has grown by about 87% since September 2009, while number of investors has grown by 71% during the same period. There are about 34 ETFs in India with Goldman Sach, Reliance, Kotak and Motilal among the major players," said Ghosh.
Commenting on the global gold investment scenario, Gunzberg noted that a concept called inflation protection is gaining momentum to safeguard against inflation.