Dhan, an investing platform has launched 'Gold Vault', is a product that facilitates investors to buy gold and silver directly from stock exchanges at live Multi Commodity Exchange prices, as per a press release from the company on Wednesday.
Investors can buy gold and silver coins or assets at MCX-linked rates using the service. Multi Commodity Exchange Clearing Corporation Ltd. undertakes the physical delivery of the purchased commodities using "institutional-grade secure vaulting".
"By routing every purchase through actual MCX futures settlement and MCXCCL clearing, we've eliminated the structural risks that have quietly plagued digital gold products in India. The price is exchange-benchmarked, the delivery is physically settled, and the storage is institutionally regulated. For the first time, a retail investor gets the same gold ownership framework that sophisticated market participants have always had access to," Jay Prakash Gupta, founder of Dhan, said.
The service offers direct price discovery on the exchanges along with purchases being transparent at real market prices.
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"Investors can choose to trade in Gold or Silver Futures contracts at live exchange rates, and then opt for physical delivery of these bullion assets," the release said.
All purchases are settled through MCX and MCXCCL. The price is given directly by MCX and is devoid of markups, hidden spreads and surprises.
The gold and silver contracts, post settlement are delivered and stored in vaults which are partnered with MCX and regulated by exchanges through ComRIS (Commodity Receipts Information System) accounts.
Interested users can access this product through the 'Dhan' app.
"By combining Exchange-led liquidity and price discovery with regulated infrastructure, investors can now invest in gold via futures with confidence, backed by transparent pricing, settlement, secure vaulting and seamless delivery,” Praveena Rai, managing director and chief executive officer, MCX said.
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