New Investment Avenue - Gold Exchange Traded Funds (GETFs)

Gold is the world’s oldest international currency and an important element of global monetary reserves. Gold ETF (GETF) is one of the smart way of buying the gold in paper form. The study is an attempt to explore the concept of GETF with primary and secondary information. As a part of the study, the residents of Ahmedabad and Gandhinagar are surveyed to understand their awareness as well as willingness for investing in GETF. The findings are supplemented with the help of a study to determine how the prices of gold are influenced at macro level with the help of secondary information. Further, the correlation between the prices of physical gold and the Net Asset Value (NAV) of GETFs listed on National Stock Exchange (NSE); was checked. The findings suggested that Sensex, US Dollar, Crude, Repo rate, Inflation rate and US Unemployment rate influenced the price of gold. Many respondents of Ahmedabad and Gandhinagar showed their willingness to invest in GETFs provided they are given proper financial literacy. Further, the correlation analysis suggested that the prices of GETFs moved in tandem with the physical gold prices during the period of the study