I'm trying to understand the current valuation of Gold Etfs like Gold BeES. The gap appears massive, and I feel I might be missing a critical piece of information regarding what these products are actually tracking.
Here are the data points I have right now (as of Jan 6, 2026):
IBJA 24K Physical Gold Price (995): ~₹13,636.1 per gram
Gold BeES ETF Price (on NSE/BSE): ~₹113 per unit
If I understand correctly, 1 units of Gold BeES are roughly equivalent to 1/100 gram of gold (995). This would price the ETF at ~₹136.36 per unit.
This shows a massive 20% difference in both prices.
My specific questions are:
1. Is Gold BeES trading at such a massive, persistent discount? Why isn't this gap closed by arbitrage?
2. What specific, real-time benchmark index are fund managers actually tracking to calculate the NAV (to be more specific i-NAV), and how does it fundamentally differ from the IBJA's calculation method?
IBJA link: https://ibjarates.com/
Any insights from the community would be greatly appreciated.
PS: Do not tell it is a market inefficiency caused due to buyers and sellers as the diff is too big here.
Thanks.