India’s NSEL to launch platinum trade soon

India’s National Spot Exchange Ltd (NSEL), the pan-India electronic spot market for commodities, is planning to launch metal contracts in platinum soon, said Chief Executive Officer Anjani Sinha.

He said the exchange will trade a 1-gram contract aimed at retail investors and plans to set up a coin market.

“It is cheaper than gold and therefore people feel it is better to buy platinum rather than investing money into gold,” Sinha said. “The potential for going up is more in the case of platinum than in the case of gold.”

At present, NSEL has four contracts namely e-gold, e-silver, e-zinc and e-copper under the present e-series with a combined turnover of Rs 700 crore -Rs 800 crore on daily basis. The spot exchange is also planning to come up with e-series contracts for different agri-commodities.

National Spot Exchange accounts for more than 98 per cent of the country’s electronic spot market in commodities, according to its website. Physical raw-material bourses operate separately from futures exchanges in India. The country is the world’s biggest user of gold.

Platinum has traded at a discount to gold since September, as demand for a store of wealth and a slowing global economy stoked demand for bullion as a haven and reduced consumption of platinum. – BullionStreet

Tags: platinum, platinum futures, platinum futures prices, platinum price, platinum price 2012, platinum prices

Posted by admin on Feb 1 2012. Filed under Platinum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry