Gold futures trading is aimed at making it the gold price determining country for the world's gold market. India is the world's largest consumer of gold at 800 tonnes. Though some players in the bullion market hedge their positions on international commodity exchanges, a large number of them do so through illegal routes.
Internatinoally, gold and silver futures are traded on NYMEX or COMEX, TOCM and the Istanbul Gold Exchange. China has its Shanghai Gold Exchange, Unlike the large contract size of many international commodity exchanges, NMCE's unit of trade and delivery is a 100 gm bar of .999 fineness. This small contract size is expected to attract large numbers of small and medium investors for whom gold is already an integral part of their portfolio, albeit in an unorganised manner. Thus, all quarters feel that gold futures trading has enormous scope in the country.
GOLD FUTURES TRADING
