| The contracts will be ready for trade as early as December expiry. An Ncdex official said, "We started facilitating trade in precious metals with 100 gm and 5 kg of gold and silver and continued for about one and a half years. Later, on market demand, we revamped the sizes of the contracts. Now, we are coming back to the old trade size again." |
| "Commodities are offered for trade on market demand. Now, we see the demand for smaller lots is growing, mainly owing to huge interest of average investors in gold," he added. |
| Those who can enjoy the ownership of gold with a piece of paper or an electronic form can do so, otherwise exchange will facilitate the physical delivery of goods from the nearby stockists for these contracts. |
| The aim for launching these contracts was to target small investors, who could save at least 15 per cent of their monthly income and had keen interest in saving for the future, sources said. |
| To tap the ongoing retail boom and overall bullish trade trend in the country, the exchange is contemplating the idea to launch small and mini gold contracts for consumers as well. |
| "We consider gold buyers not as consumers but as traders. So, we are internally debating to launch mini contract as small as 5 gm for them. But, delivery will be a major challenge, as logistics is a major problem in remote areas of the country," the official said. |
| The whole purpose of launching these contracts was to reach out to many more capable investors with a transparent business system, he added. |
| For small traders and consumers, gold means only jewellery. Every time a consumer goes in for a re-making of his jewellery, he loses 10-15 per cent in charges related to re-making etc. |
| Besides, barring branded jewellery, purity levels, most often, are misstated, while traders always wish to buy or sell through a transparent mechanism with defined purity levels. |
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