Indian Gold ETFs: 10 months of nothingness
Here is the 12-month chart for the most liquid gold ETF in India (Benchmark GoldBeES):
It’s been pretty much flat since February; note:
- Indian gold prices stayed firm despite the international drop, since the rupee significantly dropped vs. the $
- Compared to the 40% drop in Indian indices, gold investors certainly managed to keep their capital intact
- However, gold did not outperform fixed deposits and had the rupee weakened less, Indian gold ETFs wouldn’t even have worked well as an inflation hedge
- Gold’s volatility was extremely high over the past few months, not very comforting for ’safe haven’ investments
Like most other asset classes, even gold hasn’t managed to outperform the ‘king’ of 2008: cash.
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