There are three main opportunities to issue shares with gold and live shares, funds traded on the Golden Exchange (ETF) and funds allocation with multiple assets. However, experts suggest that the best way to play gold at this intersection is through funds with multiple assets with cautious allocations of yellow metal.
“Direct direct gold exposure through ETF or physical shares may not be suitable at current levels,” said Mint Taher Badshah, Chief Investment Director of Investco Asset Management (India). “Yet one should also be aware of insufficient allocation, because the trend (for gold) is still up. Funds with an exposure of gold 15-20% are now a sweet place.”
Pankaj Pandey, head of retail research on ICICE Securities, said that the company proposes only 5% of gold exposure in funds with multiple assets compared to 15% earlier. “Especially during the last stage of (gold) correction, depreciation Rupee prevented reduced domestic (gold) prices. This time, however, we do not expect any similar depreciation of rupees,” Pandey said.
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As for the Golden ETF, Invesco’s Badshah believes that investors should only look at them if there are sharp repairs of gold prices. But he’s not too excited about the jewelry stocks. “I’d wait for another quarter,” he said. “Either their award will fix sharply, otherwise I am in a hurry to buy jewelry.”
The main stock of jewelry was now traded over their annual average award.
Decoration
Stable gold prices, however, would be a blessing for home jewelry shoppers, according to AKSHA Carten, vice president of India Bullion and Jewelers (IBJA). “If gold prices remain stable in the next few months, we can expect a stronger increase in buying consumers, especially during the upcoming festive and wedding season.”
Lower and stable gold prices support buying items with large tickets, especially wedding and investment jewelry. This is reflected in higher volumes for jewelry. Devarsh Vakil, head of the main research on HDFC Securities, expects a slight recovery of jewelry volume-MID to high-Single Digies-V Q1FY26.
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Stable prices would make sense to customers at level 2 and level 3, who are more sensitive to the price and see gold as a traditional investment vehicle, Vakhil noted. Sub- £50,000 jewelry category, a psychological sweet place for customers with medium income, now disappears for several quarters.
High gold prices damage the demand of jewelry. Titan Co., the owner of Tanishq and Bellwether for the Sentiment of Consumers, showed a damn demand in the quarter of March, which influenced its volume growth. Its jewelry sales increased by 20% year-on-year, especially on the back of 30-40% higher gold prices.
But their dizziness of the April peak £1,00,000 per 10 grams, retail gold prices dropped by 5%. Experts in the field now predict a more comfortable price and hover around £93 000-96,000 brands. The jewelers waited for the prices to cool down. Ibja Kartja says any further prices correction can strengthen the demand for spying jewelry, real money for jewelry creators.
Since the gems are relatively cheaper to gold, teased jewelry has higher profit margins, because the gold content is lower than pure golden products. Gold is therefore a key control driver in the segment, especially in the bulk category.
Yet even this category with a high margin content was not immune to falling. Increased gold prices also led to a supposed demand for boarded products, which has led to the inferior mixes of products for jewelry creators. The falling gold prices from here would improve the perceived value of customers’ product and increase the profitability of jewelry companies, Kartoj said.
Vakhil of HDFC Securities said: “The nature of this category with a high number of margins means that even a modest increase in volume can significantly help profitability.”
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However, the demand for jewelry has so far been subdued in Q1 and experts are cautious for substantial recovery. The growing competition also joined the margin of suffering for organized retailers because they continue to invest in marketing and promotion, Vakhil said.
Bull pause
In addition, this recent cooling seems to be a mere pause. UBS assumes that gold prices consolidate at current levels over the next three months.
By the end of 2025, international gold prices are likely to affect $ 3,500 per OZ, because weak global economic growth and fragile cross -border relations would continue to support the safe demand for gold, she said in the report. The ongoing purchase of the central bank and sovereign wealth and the lower aggregated exposure of investors compared to the peak observed in 2012–2013 will further support gold prices, the UBS noted.
Experts believe that expensive metal has more space for growth, because the combination of persisting geopolitical instability and uneven business signals continues to support long -term attraction of gold.
(Tagstotranslate) GOLD ETF
