IndianMoney.com Research Team | Updated On Saturday, September 27,2014, 10:53 AM
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Constituents of Bullion market are:
Mutual Fund (Gold-ETF)
Facilities for banks and nominated agencies
Since this is not a futures contract, banks can directly become members of NSEL, otherwise they can participate as constituents
Banks can sell bullion at multiple locations electronically in risk free environment with payment guarantee given by NSEL
They can incorporate suppliers’ quote plus margin forming orders to be submitted on NSEL Located at one place, they can sell bullion at various locations across the country in risk free environment without any capital investment in setting up offices
Freedom from credit risk and counter party defaults in these impulsive markets
Banks must prepare themselves to compete against intra-day and overnight volatility leading to customer’s defaults by using NSEL secured platform
Facilities for Bullion dealers
Get a ready market to sell gold and silver
Development of trading and delivery business at various locations across the country using our platform
Take membership of NSEL and give client id to your customers.
Customers can place orders in NSEL terminal any time till 11.30 pm
As an alternative of creating your own B2B portal, use the structured platform created by NSEL
No capital investment
Safe and secure mechanism
Increase size of business
Increase area of operation without investment
Facilities for Jewelery merchants
Authority to quote your own buying price
Simplicity of quoting price at any point of time during your business hours
Easy buying even 1 Kg or 100 grams of gold at parity price
Receiving the most competitive quote on a single platform in your computer without making telephone call
In times of parity as well as disparity, our prices will be closer to physical market price
A yardstick spot price available for making your business decisions to buy or sell and also to fix your own price in your shop
Facilities for Traders / Brokers
Potential for introducing a fully fledged broking business in bullion market
Budding clientele and earning handsome brokerage
Simplicity of trading seamlessly at least cost
Book profit based on intra-day trading
Facilities for Retail investors
NSEL provides an investment stage for HNIs and Retail investor
Invest your savings in gold, hold gold in demat form, whenever you desire, liquidate your stock and realize full appreciation value
For Gold 1 Kg ( Rs. 12 -13 lacs) storage cost Rs 7.50 per day
Facilities for Arbitrageurs
Arbitrage between futures and spot
Delivery fungible between futures and spot
Operational comfort: Spot and futures available in one platform through CTCL
Canvass of commodity trading becoming absolute with both cash and futures on electronic platform just like stock market
In present day context, the following statements hold true:
Gold is being valued in India as a less important source of investment after bank deposits.
India is the major investor in gold jewelery.
Domestic consumption is responsive to monsoon, harvest and marriage seasons.
Indian jewelery off take is sensitive to price increases and more so to instability
Thus the Bullion Market in India even after experiencing several corrections has retained its status of being a recognizable index highlighting the economic growth of the nation in recent times.
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IndianMoney.com Research Team
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.