Goldman Sachs Gold ETF arbitrage opportunity

POSTED BY Anshuk Jain ON December 10, 2013 10:42 am ONE COMMENT

Goldman Sachs Gold ETF shows the Friday price as 2544.6099 (on amfiindia.com) but on Friday it was trading at 2845.95 on NSE. I know that the NSE price will depend on buy/sell activity on NSE and the price released by AMC is the actual price of Gold.. But I never thought difference will be so huge..

WHY?

Is this an excellent arbitrage opportunity for people who can afford to buy from AMC directly?

One reply on this article “Goldman Sachs Gold ETF arbitrage opportunity”

  1. ashalanshu says:
    December 10, 2013 at 10:35 pm

    Dear Anshuk, due to the application of expense ratio, the NAV of the fund ‘ll go away from the actual price and that’s the reason of such high difference. Please do note as you are not purchasing directly from the AMC and not selling back either, there ‘ll not be such arbitrage opportunity.

    thanks

    Ashal

    Reply

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