Goldguinea Price Today

What is MCX Gold Guinea?

Gold Guinea is a gold contract traded on the commodity exchange Multi Commodity Exchange (MCX). Unlike regular gold contracts that are often larger in quantity, the Gold Guinea contract represents 8 grams of gold, making it a more accessible and affordable option for retail investors.

Understanding Gold Guinea Contracts

Historically, the term "guinea" comes from the weight of gold coins that were minted in England in the 17th century. These coins were initially made from gold found in the Guinea region of West Africa. Over time, guinea became a unit of measure, particularly in the British monetary system.
One gold guinea is equivalent to approximately 8 grams of gold, making it a more practical unit for smaller gold investments. Gold guinea coins are quite popular in India and gold guineas are often bought for investments or gifting purposes, especially during weddings and festivals like Dhanteras. Gold guinea coins are made of 22-karat gold, ensuring high purity.
In the MCX, Gold Guinea contracts are traded in terms of 1 guinea or 8 grams of 995 purity gold. Unlike other gold contracts, such as Gold Mini and Gold Standard, which have bigger lot sizes, Gold Guinea offer investors a lower entry point.
Since the Gold Guinea prices are derived from gold prices today, they are influenced by several factors that affect gold prices like supply and demand, inflation, economic and geopolitical environment and the movement in the US dollar.

Key Features of Gold Guinea on MCX

• Lot Size: As established above, one of the main features that differentiates Gold Guinea from other gold contracts is its lot size. The lot size of Gold Guinea on the MCX is 8 grams of gold, which is smaller than most other gold contracts, allowing for more affordable and accessible trading. The maximum order size for Gold Guinea on MCX is 10 kg.
• Price Quotation: Gold Guinea is quoted in Indian rupees per gram, and its price is derived from the current market price of gold. The MCX provides real-time price quotes for the Gold Guinea contract, allowing traders to stay updated and make timely decisions. Apart from MCX, you can also check Gold Guinea prices on various business websites like the Livemint, Economic Times or Bajaj Finserv.
• Settlement Type: Gold Guinea contracts on MCX are generally settled in cash upon expiry, meaning that no physical delivery of gold is involved. However, if you wish to receive the delivery of the commodity, you must express your intention to do so before the expiry. Investors who trade Gold Guinea contracts are typically looking to profit from price movements rather than owning physical gold.
• Leverage: Like other commodities, MCX allows traders to take advantage of leverage when trading Gold Guinea. Leverage enables traders to control larger positions with a smaller margin. However, leverage also amplifies risk, making it important to trade Gold Guinea with caution.
• Timings: Gold Guinea is traded on the MCX from Monday to Friday, between 9:00 AM and 11:30 PM or 11:55 PM during daylight saving time, providing ample time and opportunity to investors.

Benefits of Trading Gold Guinea

• Accessibility and Affordability: One of the key reasons investors are attracted to Gold Guinea is its low investment requirement. The smaller lot size of 8 grams makes it cheaper for retail investors to access the gold market, as opposed to larger contracts, which require higher capital investment. Therefore, smaller investors can gain exposure to gold in a more affordable way.
• Diversification: Gold is often considered a safe-haven asset that can be used to diversify an investment portfolio. By adding Gold Guinea to your portfolio, you gain exposure to gold without a larger investment or hassles of physical storage.
• Liquidity: As a product listed on the MCX, Gold Guinea benefits from the exchange's deep liquidity. This ensures that investors can easily enter and exit positions with minimal price slippage. Liquidity is a key factor when trading commodities.
• Transparency and Regulation: The MCX, one of India's leading commodity exchanges, provides a highly regulated and transparent trading environment. This offers traders confidence in the price discovery process, ensuring that prices are set by supply and demand dynamics rather than manipulation.

Gold Guinea vs Other Gold Contracts

Gold Guinea prices today varies from other gold contracts on the MCX. Here’s a quick comparison:

• Gold Standard: The standard gold contract on the MCX represents 1 kilogram (1000 grams) of gold, a significantly larger contract compared to Gold Guinea. For larger institutional investors or those with higher capital, the Gold Standard contract is more suitable. However, its higher value means it might not be as accessible to retail investors.
• Gold Mini: The Gold Mini contract represents 100 grams of gold, making it a mid-range option for investors. This is more suitable for those who find the Gold Standard contract too large but still want to trade a significant amount of gold.