Gold ETFs or exchange traded funds came to life in Canada years ago with the first Gold ETF product named “Central Fund of Canada”. It was a closed-ended fund founded in 1961. Its articles of incorporation were amended later in 1983 to provide investors with an exchange trade-able product for ownership of gold and silver bullion. It has been listed on Toronto Stock Exchange since 1966 and the AMEX since 1986. Though Indians’ affinity for gold dates back to centuries, it was only in 2007 when the country launched its first Gold ETF (GoldBeES) with gold as the underlying asset. The gold ETF was conceptualized in India in the year 2002 by the Benchmark Asset Management Company Pvt. Ltd. when they filed a proposal with the Securities Exchange Board of India (SEBI). Few years later, this proposal was finally approved and the first Indian gold ETF was unveiled in 2007. At present, India’s National Stock Exchange alone lists over a dozen separate gold ETFs, which are traded daily and are managed by India’s leading Asset Management Companies. Will you ever consider an investment into Gold ETFs in place of physical gold?
