Gold is regarded as one of the essentials that measure one’s wealth, in India. In fact, one may not be cash-rich, but in some form or the other gold is stacked somewhere. Through centuries owning gold has been a matter of pride and enhancing one’s self respect. Till date in the rural regions of India, one’s wealth is measured in terms of the gold and jewels one has been able to invest in. This tradition carries forth today in the form of bullion trading.
Bullion is defined as gold or silver, as well as other precious metals that are in the solid form being a biscuit, slab or coins. Gold is considered a primary asset with high appreciation value and ready convertibility at any given point. In India, marriages are fixed in accordance to the gold the bride takes to her in-laws home.
People from every stature of Indian society invest in bullion. They prefer this over property as in times of a crisis it is not all that simple to convert property to liquid cash, but the bullion can be sold within a couple of hours, and the recipient would be cash-rich, almost instantly.
There are various factors that contribute to the variability of bullion rates, amongst them the prime being:
-Stock equilibrium, implying the amount that is stocked up
-The flow equilibrium, which means the amount that is flowing in the economy, or the volume of bullion
India is ranked as the largest bullion consumer in the world. It records an approximate annual demand of 800 tons.
The following are some of the major bullion exchanges in the India:
-Multi Commodity Exchange of India Limited: 102 A, Landmark, Suren Road, Chakala, Andheri (East), Mumbai. Tel: 022 66494000; Fax: 022 66494151
-National Commodity & Derivatives Exchange Limited: Exchange Plaza, C- 1, Block G, Bandra (East), Mumbai. Tel: 91-22-5640 6789; Fax: 91-22-5640 6899
-Contact India Commodities (P) Limited: 27 J, Zamrudpur, Kailash Colony Extension, New Delhi. Tel: 91 11 26296606-10, Fax: 91 11 26296607
-MMTC Limited: Core – 1 SCOPE Complex, 7 Institutional Area, Lodi Road, New Delhi. Tel: 24362200; Fax: 24360724