Buying silver becomes easier:Common man can now buy 100 gm of silver from govt assigned company – MCX

Buying silver is becoming easier day by day. Citizens in India will soon be able to buy and even sell silver of wieght of as low as 100 gram (gm) on the platform of the government-assigned commodity exchange, the Multi-Commodity Exchange (MCX). But, they will not be able to trade the white metal in physical form, but only in digital form. They will be able to buy and sell digital tokens of gold’s first cousin. Investors can sign a contract to buy and sell digital tokens of silver at predetermined prices. Even the dates on which they will enter into such a contract and when the agreement will expire will also be predetermined. These digital tokens are known as futures. MCX on Monday launched Silver 100 futures contracts, enabling retail investors and small jewellers to gain exposure to silver of 100 gram weight. According to the India Bullion and Jewellers Association (IBJA), the price of 1 kg of silver was ₹2.63 lakh and that of 100 gram was ₹26,300. Earlier, people had to buy minimum 1 kg of silver from MCX The new contract adds to MCX’s existing silver futures lineup of 30 kg, 5 kg and 1 kg contracts, and monthly options in 30 kg and 5 kg denominations. Clearing and settlement will be handled by the Multi Commodity Exchange Clearing Corporation Limited (MCXCCL). The Silver 100 futures contract helps businesses in India s silver industry protect themselves against price volatility. Local jewellery businesses can now hedge or take delivery in quantities that are better aligned with their inventory needs.” -Praveena Rai, Managing Director and CEO of MCX Reasons why MCX took such a step: The smaller denomination is designed to reduce capital requirements for small and medium enterprises (SMEs) and retail participants, while offering quality-assured physical delivery with transparent making charges at contract expiry. MCX said the contract was developed in response to market feedback from industry participants