Gold ETFs try to lure Indians away from metal and into paper

Section:

SEs to open shop for Gold ETFs on Akshaya Tritiya

From The Hindu, Chennai (Madras), India
Thursday, May 13, 2010

http://www.thehindubusinessline.com/2010/05/14/stories/2010051453561001....

MUMBAI -- Stock exchanges are all geared up to snatch a few glitter from jewellers this Akshaya Tritiya. Both Bombay Stock Exchange and National Stock Exchange will keep the markets open from 9 a.m. to 3.30 p.m. on Sunday for a special trading session in the seven gold exchange-traded funds traded on the exchanges' equity trading platform.

Akshaya Tritiya is considered an auspicious occasion to buy gold. "Market participants may note that except for the seven gold ETFs, none of the other securities shall be available for trading on that day," NSE said in a press release on Thursday. Online commodity exchanges such as MCX, NCDEX, NMCE, and ICEX, which also trade in gold, are yet to decide on keeping their exchanges open on Sunday.

Though gold ETFs do not attract big trading volumes on a normal day, a few brokers expect Akshaya Tritiya to change the trend and keep their terminals open for investors.

Mr. Motilal Oswal, chairman and managing director of Motilal Oswal Financial Services, said, "We will keep our head office open and some of the retail branches will also operate to depending on client needs."

Mr. Rakesh Goyal, senior vice president of Bonanza Portfolio, said that all their branches will be open and most of dealers, branch managers, and relationship managers have been asked to come.

Gold sales this Akshaya Tritiya may be more in value terms, but in volume it may fall shorter than last year as prices have touched new highs in the last few days.

Mr. C.J. George, managing director at Geojit BNP Financial Services, said, "Our branches will not be open this Sunday as gold ETFs do not attract many investors. However, our Internet trading facility and toll-free numbers will be available for those who want to trade."

Mr. Prashanth Bhansali, managing director of Mehta Equities, said their offices and branches will be closed, as people prefer to buy gold by giving cash and not cheques. Moreover, most consumers feel more comfortable buying gold in the physical form than on paper.



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