India’s pension regulator has included gold and silver exchange-traded funds as permitted investments for the first time, unlocking about $1.7 billion of potential demand for the precious metals.
Under new guidelines issued on Wednesday, National Pension System funds — India’s government-regulated savings scheme — may allocate approximately 1% of their assets to approved gold and silver ETFs, giving investors exposure to the price of bullion. Gold and silver have enjoyed record-breaking rallies this year, surging 61% and 114%, respectively.