January 11, 2011 / 20:51 IST
Gold volumes in Exchange Traded Funds (ETF) in India, the world largest consumer, surged 74.3% in December, when the yellow metal struck its record high, data from funds showed.
Volumes surged to 14.403 tonnes in December, a never-seen-before level since its launch four years ago.Front-month gold contract on the Multi Commodity Exchange (MCX) was at 20,430 rupees per 10 grams on Tuesday, down over 2.5% from the all-time high of 20,924 rupees struck on December 7."Investors can invest in gold in a phased manner on corrections," said a fund manager with one of the mutual fund, which offered the gold ETF. "ETF may grow to 25 tonnes by next year."Though gold collections under ETFs are growing, they remain miniscule against India's imports of about 800 tonnes annually.Gold ETFs -- instruments that can be traded like shares and are backed by physical gold holdings -- is a segment in India that may get crowded with some other funds planning forays. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
