Aug. 1, 2010 (The Hindu Business Line) --
Our Bureau
Kolkata, Aug. 1
National Spot Exchange Ltd (NSEL) has tied up with Shree Ganesh Jewellery House Ltd (SGJHL) to launch electronic trading of gold bars and coins under the brand Gajagold.
The electronic trading service will begin on Monday, according to a press statement issued by Ganesh Jewellery House. In the first phase, the company will sell imported London Goods Delivery Bar with a minimum booking volume of 1 kg and 0.995 per cent purity.
While the booking could be made from across the country, the physical delivery of the gold would be possible across 19 districts of West Bengal on a T+1 basis (within one business day) to begin with.
The company will soon look at expanding its base to other States in collaboration with NSEL and also offer 0.999 per cent pure gold, the release said.
Growth prospects
The import and eSpot trading of gold is expected to help the company escalate its growth momentum by adding about 15 per cent (about Rs 200 crore) on its top-line by the next quarter. SGJHL will have to maintain a minimum corpus of 150 kg of gold at any given point of time.
The eSpot trading will help fulfil a major need gap of buying gold at an international market price. “Both retail as well as wholesale buyers will now have easy access to imported gold and its benefits of assured purity at competitive international prices against buying from banks at higher rates or from physical gold market where purity is questionable,” said Mr Nilesh Parekh, Chairman, SGHCL.
The company aims to sell about 1,000 kg of gold through this platform during the current quarter. “The boom in retail gold investments has just begun and more participants are expected to join the party very soon.
With increased availability of retail gold investment products in the market, Indian households, the largest consumers of gold in the world, are now becoming a potential class of retail investors,” he pointed out.
