NCDEX launches `Gold Now’, a new online platform for gold trading

Commodity exchange NCDEX on Thursday announced the launch of a new national market for gold, `Gold Now', which it claims to be the first transparent and convenient online market for buying and selling gold.

The `Gold Now' platform is aligned with the government's gold monetisation scheme (GMS), announced on 19 May and is intended to reduce the dependence on imports.

With 'Gold Now', NCDEX hopes to bring out 2-5 per cent of the 20,000 tonnes of gold lying idle in homes and lockers, NCDEX stated in a release.

This is also expected to give a boost the government's `Make in India' campaign as the platform will accept gold recycled in exchange-approved refineries as `Good Delivery'.

''With the launch of the Gold Now national marketplace, we are creating an ecosystem that is at par with international standards and which will help the bullion and jewellery industry improve its efficiencies,'' Samir Shah, MD and CEO of NCDEX, said.

To ensure quality of the recycled domestic gold, NCDEX has accredited four refineries - MMTC Pamp, Kundan, Shirpur Gold Refinery and Edelweiss Gold Refinery - as 'Good Delivery' gold refiners.

NCDEX said it accorded approval to the four refiners after a year-long exhaustive and meticulous accreditation process. The domestic recycling industry at present consists of 17 refineries.

`Gold Now' will offer bullion in 1-kg and 100-gram forward contracts for six centers with daily delivery facility through T+1 and T+2 settlement system. Delivery will be available in cities such as Ahmedabad, Mumbai, Delhi, Kochi, Hyderabad and Chennai.

Approximately 20,000 tonnes of gold is estimated to be lying with Indian households, temples and trusts. If mobilised effectively, this could create a domestic supply of gold, while reducing dependence on imports, in line with the government's proposed gold monetisation scheme, the NCDEX release added.