Hey Saurabh, too early for me to comment on the product strategy but have noted your suggestions. Rgds
Hi Vishal,
Is there any approximate relation between iNAV of GOLDCASE and price of gold?
How many units of GOLDCASE do I need to buy to consider it as 1gm of gold (I know it’s approximate due to expense ratio, etc)
I believe for GOLDBeES it is 100 units ~ 1gm
Hi, GOLDCASE tracks LBMA 1kg bar of gold with 99.5% purity. What goes into iNAV calculation are the live LBMA Prices (USD prices), FX, Customs Duty. Another factor that goes into the NAVs is the prem/disc to domestic prices which is usually as of yesterday. So in a volatile market the prem/disc can vary and may not be easy to figure out even for us as India does not have a spot exchange and the domestic spot prices are a poll. With the liquidity increasing sharply in Gold & Silver ETFs, and the increase in number of market makes, the traded prices are generally fair and reflect realities of the spot market unless there is intense stress in the underlying market.
Second, one unit of Goldcase equates to approximately 0.00157 grams of Gold. Hence, to consider 1 gram, one needs to buy approximately 637 units. Please note that these calculations are done on the basis of previous day’s valuations and NAV.
Hope this helps!
So do you mean LBMA * Currency conversion * customs (approx)?
I read recently appon Nippon moving to tracking domestic gold prices? What would this mean? IBJA?
Thank you
LBMA * Currency conversion * customs (approx) and prem/disc to MCX spot and the relevant creation unit for the day which is available on our website for which the cash component needs to be adjusted. Every AMC is pegging their NAVs buy adjusting the prem/disc based on available MCX spot prices. This is done because we do not still have a spot exchange for commodities. Rgds
Hey Anil, this is WIP, will come back. Rgds