Is zerodha goldcase backed by real gold?

If it is backed by gold, how to verify?

Zerodha Gold ETF is backed by physical gold :slight_smile: Regarding verification, @VishalJain can explain this better

Yes, Zerodha GOLDCASE is backed by physical gold. These are 1kg LBMA approved gold bars stored in a vault. As per the regulatory framework, physical verification of gold needs to be conducted by the statutory auditors of the schemes half-yearly. Accordingly, statutory auditors of Zerodha GOLDCASE have concluded the physical verification and certified the same.

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Thank you for reply. Do share links for these audit reports, if available publicly.

The goldcase price has been oscillating in a range since Apr, whereas the gold price has increased by 25%. It is a huge loss with investment in Goldcase. Any reason and/or explanation from Zerodha, why Goldcase price is not increasing with the Gold price?

Hi @Sudipta_Guru

Domestic Gold prices fell by more than 8% after a 9% cut in import duty on Gold which was announced during the union budget this year. The outperformance that you’ve seen in International Gold prices as compared to domestic prices is precisely due to this reason.

Gold ETFs and SGBs track prices of physical Gold locally.

This is the performance comparison of GOLDCASE for your reference:

Thank you for the clarification

@VishalJain Thanks you for assurance that

Moreover, I have two queries

  1. whether can I get physical Gold whenever I wish to exit ? or I have sell it on exchange only?
  2. I want to understand methodology for GOLDCASE as all Gold ETF have their price allied with gold Rate with decimal whereas GOLDCASE stared with NAV Rs 10. So, can’t co-relate with gold current price? for example if gold price is Rs. 70,000/- then TATAGOLD have ETF price Rs 7 which is 0.0001% of Gold Price or GOLDBEES have Rs. 70 which is 0.001%…so it can correlate with gold price. but when in GOLDCASE hard to correlate.

Request you to please explain.

  1. As per regulatory mandate, large investors can directly purchase / redeem from the fund in “Creation unit size” subject to the value of transaction is greater than the threshold of ₹ 25 crores or such other amount as may be specified by SEBI from time to time.

  2. The methodology for determining the NAV of the Gold ETF depends on the creation unit size. As far as GOLDCASE is concerned, the ETF’s creation unit size is 6,30,000 units. Given we wanted to launch our ETF at ₹10 we fixed this particular creation unit size, as gold prices were trading around the ₹63,000 mark for 10 grams. While investing in Gold ETFs, better to look at value rather gms as correlation with gms and NAV will keep changing based on the expense ratio, tracking error of every Gold ETF.

Hope this helps!

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