Gunning For Gold: Gold ETFs That Gave 20% Returns In 6-months

Gold has hit a record high and the precious metal is truly living up to its reputation as a "safe haven" asset, simply because of the fact that the banking crises has made sure investors take shelter in gold. Apart from this, expectations that the US Fed would dramatically reduce the pace of interest rate hikes has also bolstered gold investment. As an investor in gold, a question that often arises in ones mind is:

Why is physical gold still favoured over Gold ETFs?

As an invest physical gold is a strict "no". Arguably, physical gold can adorn the body, while Gold ETFs cannot. But, even those who want to invest in gold invest in physical gold. What happens when you invest in physical gold is that you get prices that are not attractive when you sell, as compared to gold ETFs. Apart from this, there is no theft worries as in physical gold and no bank locker charges as well. Gold ETFs track gold prices and if you are still investing in gold and not gold ETFs, you need to think again.

Returns from Gold ETFs

Name	6-months returns	1-year returns
Invesco Gold ETF	20.09%	13.67%
IDBI Gold ETF	20.45%	14.08%
Sbi ETF Gold	19.99%	13.53%
Birla Sunlife Gold	19.87%	13.52%

One of the top performers from the segment has been the IDBI Gold ETFs. Since ETFs invest money in gold, generally speaking if gold prices tend to move higher, these ETFs tend to generate similar returns. It is hard to find returns that do not match gold price movement. Sometimes, most of the gold ETFs tend to give similar returns. Please note that returns from Gold ETFs are not certain and we are just highlighting certain facts and the above are not our recommendations. To buy gold ETFs you need a trading and demat account and you can buy it in the manner of buying shares and stocks.

Disclaimer

Investing in Gold ETFs like any other commodity has its own risks. Please consult a professional advisor before investing. Neither Greynium Information Technologies Pvt Ltd, nor the author should be held responsible for losses based on a decision from the article.