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Gold as an Asset for the Indian Investor


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1 Indian Institute of Foreign Trade, New Delhi, India
     

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Gold is a much sought-after asset by investors, being especially popular among Indian investors, who look at gold for security, returns as well as for investment risk diversification. Investing in gold is integrated into the Hindu tradition, and strict followers of the tradition invest in gold with consistency at least twice a year. However, investing in physical gold has its downsides. The booming Indian economy with a well-regulated financial sector has developed a number of alternatives for investing in gold without holding it in its physical from. This paper examines the alternatives accessible to investors in India so that investment in gold is made possible without the complications associated with holding physical gold, and the expected future products that will widen the choices available to Indian investors. Among the alternatives discussed are Gold ETFs, Sovereign Gold Bonds, Gold Futures and E-Gold.


Keywords

Physical Gold, Gold ETFs, Sovereign Gold Bonds, Gold Futures, E-Gold.
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  • Gold as an Asset for the Indian Investor

Abstract Views: 373  |  PDF Views: 1

Authors

Niti Nandini Chatnani
Indian Institute of Foreign Trade, New Delhi, India

Abstract


Gold is a much sought-after asset by investors, being especially popular among Indian investors, who look at gold for security, returns as well as for investment risk diversification. Investing in gold is integrated into the Hindu tradition, and strict followers of the tradition invest in gold with consistency at least twice a year. However, investing in physical gold has its downsides. The booming Indian economy with a well-regulated financial sector has developed a number of alternatives for investing in gold without holding it in its physical from. This paper examines the alternatives accessible to investors in India so that investment in gold is made possible without the complications associated with holding physical gold, and the expected future products that will widen the choices available to Indian investors. Among the alternatives discussed are Gold ETFs, Sovereign Gold Bonds, Gold Futures and E-Gold.


Keywords


Physical Gold, Gold ETFs, Sovereign Gold Bonds, Gold Futures, E-Gold.

References