Review Paper
Year: 2021 | Month: March | Volume: 8 | Issue: 3 | Pages: 731-736
Impact of Corona on Gold Rates
Seema Mridha
Assistant Professor, G.S. College of Commerce and Economics, Nagpur
ABSTRACT
The corona pandemic has impacted each and every sphere of human life. Its impact on investment decisions can also be felt. For long term benefit and risk-free investment, gold is always considered as a safe zone. Even small investors such as household prefer it rather investing somewhere else. With the beginning of the pandemic, when the whole nation went into complete lockdown, many investors and institutional investors especially from Europe and America invested huge capital in Gold backed ETFs. As per the World Gold Council review, after China, India is the second largest consumer of gold but the demand for them reduced drastically during these challenging times. But the price for gold reached a historic high at Rs.53,250 per 10 gram. Gold backed ETFs and similar products (gold ETFs) had a remarkable year in 2020. Data from World Gold Council, Bloomberg was studied Globally, gold ETFs had record annual net inflows of US$47.9bn or 877 tonnes. Gold rose 25% during 2020, hitting a historical high of US$2067.15/oz on August. It was found that when economy was worst affected, production stopped, many people lost job, share prices crashed, gold became very lucrative and showed how its rate is inversely related with the economic growth.
Keywords: Gold rates, corona pandemic, ETF (Exchange Traded Fund).
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