Although, there has been some redemption of gold exchange-traded funds (ETF), Sanjiv Shah of Goldman Sachs AMC tells CNBC-TV18, the total amount that has gone out is about Rs 200 crore, whereas the ETF size is more than Rs 10,000 crore. Hence, it is a marginal amount and he does not see any significant pressure on gold ETFs.
Shah further adds that gold ETFs are the only option to invest in non-rupee assets for an Indian investor who wants to play in the currency market. The best bet for him is to buy gold either in the physical form or as ETFs, as the golden metal acts as a very good hedge to invest in a non-rupee asset.
Below is the edited transcript of the interview on CNBC-TV18. Also watch the accompanying video.
Q: What is happening with gold, we are seeing quite a bit of redemption from gold exchange-traded funds (ETF) and withdrawal of money. Just profit taking or something else?
A: If you look at the total amount which has gone out is about Rs 200 crore and given