Exchanges in drive to tap household gold

Exchanges in drive to tap household gold
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First Published: Tue, Jun 30 2009. 09 11 PM IST
Updated: Tue, Jun 30 2009. 09 11 PM IST
Mumbai: The country’s biggest bourse for trading physical gold, National Spot Exchange Ltd, has begun offering contracts in small denominations, aimed at households in the world’s largest consumer of the precious metal.
The exchange will offer contracts in sizes from 8g to 1kg, managing director Anjani Sinha said on Tuesday. At present, the bourse only trades imported gold bars in sizes of 100g and 1kg, he said.
Multi Commodity Exchange of India Ltd and National Commodity and Derivatives Exchange Ltd, the country’s biggest commodity bourses, only trade gold futures.
That forces individuals to buy or sell bullion through jewellers and banks in physical form. Households in India, where women are the biggest consumers of gold, have as much as 25,000 tonnes of the metal locked away in family vaults, according to National Spot Exchange.
“Our main aim is to tap the huge household stock,” said Sinha in a phone interview. “There’s no transparent, electronic market with a nationwide reach for spot gold in India.”
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First Published: Tue, Jun 30 2009. 09 11 PM IST