The passage to India just got a little wider and more glittery, thanks to the exchange traded fund (ETF). India’s top lender, State Bank of India, is planning to launch a gold-focused ETF (available in India only) while hoping a booming economy will boost demand for the precious metal. A few gold ETFs are available in India but are less than a year old. The big news is the three providers already have more than 3 tonnes of gold, reports Reuters press release. State Bank is aiming high, with "nothing less than two billion rupees."
Gold prices have jumped 30% in 3 months. Likewise, wider media coverage of high prices also attracted money into ETFs allowing people to buy the metal on an exchange without physical delivery. streetTracks Gold Shares (GLD), the world’s largest gold ETF, rose to a record 599.50 tonnes earlier this month.
On a side note, iPath MSCI India Index (INP) is the only way to invest in India with an exchange traded product in the United States. That may change sooner than we think.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.