National Spot Exchange Ltd. (NSEL) has started trading platinum electronic spot contracts for jewelers and retail investors with its e-Platinum platform in denominations of 1 gram for retail investors and 100 grams for jewelers, the exchange said.
“The option of physical delivery in coins or bars in multiple locations makes this product all the more attractive for retail investors, apart from its other benefits like no storage issues and ease of trading,” said Anjani Sinha, the managing director of NSEL.
Spot exchanges are an alternative electronic platform to domestic physical markets. NSEL currently offers dematerialized account based instruments called e-Series for commodities such as gold, silver, copper, zinc, nickel and lead.
NSEL stated that demand for platinum has been steadily increasing in India due largely to strong industrial demand and a growing preference for platinum jewelry in urban areas.
The exchange estimated that India’s platinum demand has grown by more than 20 percent a year, driven by record sales by automakers and growing investment demand. India’s platinum jewelry consumption has seen a strong growth of 45 to 50 percent in the past year, it added.
Sinha said that e-Platinum will be available to retail investors at the same price across the country with the option of physical delivery in Delhi, Mumbai, Jaipur, and Hyderabad.