Investors’ interest in investing in gold as a safe option has increased rapidly due to the Corona epidemic.
Investors’ interest in investing in gold as a safe option has increased rapidly due to the Corona epidemic. Investors from all over the world have attracted more investors from gold jewelery worldwide this year to gold ETFs (exchange traded funds), gold bars or gold coins. According to the data given on Goldhub’s website, 572 tonnes of gold was purchased as jewelery worldwide this year and investors invested in 1130 tonnes of gold (ETFs, bars, coins). Central banks purchased 233 tonnes of gold and industries bought 139 tonnes of gold. Gold purchases in the form of ETFs, bars or coins have almost doubled this year compared to last year.
Jewelery shopping reduced due to Corona epidemic
According to the deputy vice president (commodities and currencies research) of brokerage firm Angel Broking, worldwide markets were closed for a long time due to the Corona epidemic in 2020 this year. Due to this, the purchase of jewelery was affected. Talking about the last six years, the lowest jewelery was purchased this year. Apart from this, the trend of investors towards gold e-form is increasing because there is no need to worry about its security and it has to bear less charges. This year, around 572 tonnes of gold jewelery was purchased worldwide. According to Goldhub’s data, 1064 tonnes were purchased in 2019, 1051 tonnes in 2018, 1060 tonnes in 2017, 953 tonnes in 2016 and 2015 tonnes of gold jewelery. During this time, investment in ETF, coin or bar was invested in 485 tonnes in 2015, 1072 tonnes in 2016, 725 tonnes in 2017, 572 tonnes in 2018, 594 tonnes in 2019 and 1130 tonnes in 2020.
Decline in central bank purchases in 2020
Talking about government procurement, the central banks have reduced purchases in gold this year. According to Goldhub, this year, central banks across the world have bought only 233 tonnes of gold, compared to 385 tonnes last year. Talking about the Reserve Bank of India, RBI has increased purchases in gold for some time. Earlier, in the first quarter of 2000, RBI bought 357.76 tonnes of gold. After this, his purchases continued around this till the third quarter of 2009. In the fourth quarter of 2009, RBI purchased 557.746 tonnes of gold. After this, once again the RBI kept its purchase restrained. Then the RBI started increasing purchases from the second quarter of 2018. In the third quarter of 2020, RBI has procured 668.246 tonnes of gold. A table is given below, in which it can be seen that what has been the trend of gold shopping in the last few years.
Attraction increased in Gold ETF
The attraction of investors worldwide has increased in investment towards Gold ETFs. Talking about India, according to the data given on AMFI (Association of Mutual Funds of India), investment in gold ETFs continued continuously since March this year. There was an outflow of 194.95 crore in March followed by 730.93 crore in April, 815.03 crore in May, 494.23 crore in June, 921.19 crore in July, 907.85 crore in August, 597.26 crore in September and 384.21 crore in Gold ETF in October. Stayed. Some investors booked profit in November and had an outflow of Rs 141.09 crore. However, the trend of investors still remains on the Gold ETF.