Crowne Gold
FAQ Sign In Open an Account
Overview Buy Gold Buy Silver Sell Gold Transfers & Exchanges Physical Delivery Referrals Merchants
Brokers
Fees and Costs
 
Live Gold Spot
SPOT MARKET IS OPEN
closes in 01 hrs.50 mins.
Nov 12, 2007 NY Time
bid 818.3
change 1.6
contractmonth 2007-11-11
high 819.8
open 816.7
openint
pctchangeS 0.20
prevclose 816.7
time_ymdhms 2007-11-12 01:50:09
volume
Silver & PGM'S
SPOT MARKET IS OPEN
closes in 01 hrs.50 mins.
Nov 12, 2007 NY Time
bid 15.16
change 0.06
contractmonth 2007-11-11
high 15.19
open 15.10
openint
pctchangeS 0.40
prevclose 15.1
time_ymdhms 2007-11-12 01:50:09
volume
 
India may be indifferent to gold ETFs without delivery of metal - mar - 22, 2007



India may be indifferent to gold ETFs without delivery of metal

Submitted by cpowell on 07:33PM ET Wednesday, March 21, 2007. Section:

Gold ETFs May Not Be A Big Hit

By Ashutosh Joshi
Business Standard, Mumbai
Thursday, March 22, 2007

http://www.business-standard.com/common/storypage.php?autono=278490&left...

MUMBAI -- The launch of the country's first exchange-traded gold fund by Benchmark Mutual Fund has paved the way for investors to invest and trade in the yellow metal just like in any other equity investment.

But the scheme, called Gold BeES, may not attract investors in large numbers as having a demat account is mandatory for investing in the ETF. Besides, investors may not be keen to invest in this product since on redemption the repayment is done in cash and there is no physical delivery of gold.

These requirements hit fund houses' plans to garner big investments for such schemes as number of demat account holders in the country is small compared with the that of bullion investors. Traditionally gold has been a safe investment for future.

In a bid to overcome this issue, the fund houses are tying up with depository participants (DPs) and offering demat account services to investors, said officials.

"We have tied up with a few top DPs who on request by the investor would open a demat account within 24 hours," Rajesh Bhojani, president for sales, UTI Mutual Fund, said. The MF is expected to list its gold ETF scheme by the end of the month.

At present India accounts for 23 percent of the world's jewellry demand and around 35 percent of global investment in gold comes from the country.

However, a large number of investors put their money in gold not only to see value of their investment grow but also to use the metal for making jewelry later.

The MFs are also working out a strategy to pay back investors in the form of bullion.

"The physical delivery of gold on redemption is possible. New regulations are to be put in place," Sanjiv Shah, executive director of Benchmark Mutual Fund, said.

Benchmark BeES has collected around Rs 100 crore during its new fund offer period and received applications from 22 states in the country.

The minimum subscription for the scheme was Rs 10,000, while it is Rs 20,000 for the UTI's GETF scheme.

Besides Benchmark and UTI, five other MFs have also lined up to launch their gold ETF schemes.

* * *

Help Keep GATA Going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at www.GATA.org. GATA is grateful for financial contributions, which are federally tax-deductible in the United States.

Contact GATA

info@gata.org

Gold Anti-Trust Action Committee
7 Villa Louisa Road
Manchester, Connecticut
06043-7541 USA

www.gata.org



 
  International Customer Service: 1-869-466-4977USA Customer Service: 1-775-841-3573