The Multi Commodity Exchange (MCX), which launched the gold futures contract for the small retail investors on Akshaya Tritiya on May 8, reported a first day volume of Rs 21.5 crore. The contracts worth of 181 kg of gold was awarded for the July delivery on the launch day.
According to a MCX official, the gold guinea contracts would ensure greater participation of small investors in the gold futures market. ?The mini contract ensures participation of small investors in gold,? a MCX official told FE.
This is for the first time a commodity exchange in the country has launched a contract that caters to smallest of retailers. ?The gold unit size at 8 grams is being purchased by retail consumers for investment or ornamental usage,? the MCX official said.
The gold guinea, which was traded at Rs 9,900 per 8 gram on May 9th, was at Rs 9,740 per 8 gram at MCX on Tuesday. Traders claim that the gold guinea was being traded at 12- 14% below the physical market prices. The rates of gold at physical market are ranging between Rs 10,500 per 10 grams to Rs 11,500 per 10 grams.
?Small investors, who want to take less risk, would be benefited with the launch of mini-gold contract,? Delhi-based trader said. According to the mini contract, the maximum order size of the 24 carat gold would be 10 kg. The exchange charges only 4% on the contract price. MCX has set up delivery centres at Ahmedabad, Delhi, Mumbai, Hyderabad, Chennai, Bangalore and Kolkata, for physical delivery of gold guinea. ?We are exploring possibilities of opening more such delivery centres across the country,? a MCX official said.
At MCX, gold is amongst the top three traded commodities. Gold business on MCX during the first fortnight of April 2008 stood at Rs 50,268.8 crore compared with Rs 18,893.28 crore during the corresponding period last year. India tops the list of gold consumption in the world with an annual demand of 773.6 tonne in 2007.