MMTC plans spot trading in gold coins

"We are in talks with NCDEX to start spot trading in gold coins of 8 grams. If everything goes fine, spot trading should begin in another two months," the company's Chairman and Managing Director Sanjiv Batra told reporters on the sidelines of the launch of Festival of Gold here.

Demand for gold coins is surging in India and the company expects the spot trade to give a better price to investors, he said. Currently, gold futures are traded in variants of 10-gram, 1-kg and 8-gram coins on NCDEX.

 

To cash in on the gold demand during the festive occasion of Akshay Tritiya, an auspicious day for gold buying, MMTC on Friday launched a nine-day, exhibition-cum-sale in the national capital along with the World Gold Council (WGC) and the Gitanjali Group.

"Last year, total gold consumed during Akshay Tritiya was around 50-60 tonnes across the country, which was a 30 per cent growth over the previous period," the company said, adding, ൰-45 per cent of the gold was consumed in south India followed by the North and West."

According to WGC, similar consumption patterns are expected and hopefully if gold prices stabilise, the quantities could be even higher than last year's.

MMTC said if prices remain stable, it would expect a business of over Rs 12 crore during the May 2-11 sale period.

The company said the country's gold imports during the current financial year would be around 700-750 tonnes. MMTC plans to buy about 140 tonnes.