Rising gold exchange-traded pdt demand not to hit bars, coins - Metals Focus
This story was originally published at 20:11 IST on 27 February 2026
Register to read our real-time news.Informist, Friday, Feb. 27, 2026
MUMBAI – Rising demand in India for gold exchange-traded products, which surpassed inflows into equities last month, is unlikely to hurt demand for gold bars and coins materially, global precious metals research consultancy Metals Focus said in a report Friday. A substantial base of investors continue to prefer physical gold, including those who value holding physical metal and purchases funded through unaccounted income, the report said.
Gold exchange-traded products have been available in India since March 2007 but holdings remained modest for most of that time. That changed in 2024, when they began to gain meaningful traction. Total holdings rose sharply to 110.5 tonnes in January from 42.3 tonnes in December 2023. Several factors have supported this growth such as the discontinuation of sovereign gold bonds. The launch of several new multi-asset funds, which allowed for 15-20% allocations to gold, created an additional channel supporting inflows, the report said.
"As a result, inflows into gold ETPs (exchange-traded products) have surpassed equities for the first time in January 2026. More recently, the government's decision to allow pension funds to allocate up to 1% of assets to gold could generate further incremental demand for ETPs," it said. Structural features have also improved accessibility. With each exchange-traded product unit typically representing 0.01 gram of gold, investors allocating through systematic investment plans can deploy fixed amount without worrying about minimum quantities, unlike physical gold where even 1g purchases require a higher ticket size, it added. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Ashutosh Pati
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
