Page 18 - Bullion World issue 2 June 2021

Bullion World | Issue 02 | June 2021

Want to buy physical

Gold? NSE 1 gram

deliverable Gold

Futures contract is

on the block.

Introduction of 1 gram Gold contract with

delivery-based settlement on

NSE Commodity Derivatives segment.

India is the second-largest consumer of gold in the world after China. NSE now launches its 1 gram Gold
Across the globe people buy gold for varied reasons which may include futures contracts with effect from June
the local market conditions, economic factors like inflation perceptions, 7, 2021. This is a seamless offering
hedging against economic uncertainty etc. In India, a significant portion of for investors who want to start small in
gold demand is derived from the emotional and cultural value associated gold. In India Gold coins are available
with it. The introduction of exchange traded commodity contracts gave a in several purity levels such as 916
structured mechanism for trading and hedging in commodities. However, (22 Carat), 995, or 999 and the prices
this was mainly for the larger players as the lot size for trading was vary according to the purity levels.
relatively large. In the bullion space NSE has been offering deliverable NSE offers its 1 gram Gold contract
commodity contracts namely Gold (1 Kg) Futures, Gold Mini (100 gms) with 999 purity. Thus, this may evolve
Futures and Options, Silver (30 Kg) Futures and Options. as one of the most transparent
ways to buy gold in its purest form
accompanied by a quality certificate.

Amidst the rising global uncertainties
and the economic impact of the
ongoing Covid-19 pandemic, the
demand for Gold ETFs in India has
witnessed a considerable increase.

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