Leading commodity bourse MCX today said its new one-kg silver contract has clocked a record delivery of 1,010 kg silver bars.
The Silver 1000, a monthly contract launched by Multi Commodity Exchange of India Ltd (MCX) on September 27, is a first of its kind deliverable 1 kg silver contract with New Delhi as the base delivery centre.The exchange said in a statement that the contract has been receiving impressive response from market participants, especially small investors located in North India.
The contract witnessed an average daily open interest of 1,516 lots, of which 1010 kg of kilo bar was delivered, with 66% of the open position resulted in delivery.
Commending on the record volumes, MCX Managing Director and CEO Shreekant Javalgekar said that MCX is the world's first exchange to launch a kilo-bar deliverable contract in silver.
"The open interest witnessed by Silver 1000 contract demonstrates the commitment and conviction of the market participants in it," he said.
For delivery, MCX has notified one-kilo 999 purity silver bullion bar of MMTC-PAMP India private limited, a joint venture between Government-run MMTC Limited and PAMP SA of Switzerland.
MMTC-PAMP Director Rajesh Khosla said this is the first instance where products manufactured by a domestic refinery-cum-mint are listed as deliverable on the exchange.
Over the years the demand for silver has been increasing owing to the good returns generated by the precious metal.
Globe Capital Market Limited Founder Ashok Agarwal said that MCX's Silver 1000 contract has enabled its retail customer base in North India to take delivery of the product and it would make New Delhi one of the largest delivery centres of silver in India.
Riddhi Siddhi Director Mukesh Khotari said that market participants had to earlier take delivery of 30 kg silver bars, but MCX's Silver 1000 contract has elped them take delivery of one kg silver bar at lower margins.
Mumbai-based MCX is India's first listed, demutualised nationwide electronic commodity futures exchange and the various commodities traded on its trading platform include bullion, energy, metals and agri commodities.
