National Commodity & Derivatives Exchange Limited (NCDEX), is launching two new contracts-Gold International and Silver International from December 29, a statement issued by the Exchange said. On account of persistent market demand and keeping in mind the fact that India has very high imports of bullion, NCDEX now introduces the two new contracts-gold and silver international, the release said. With the introduction of futures market in India, NCDEX started offering contracts in gold and silver. It currently offers futures trading in 1 Kg gold & 30 Kg Silver contracts. These contracts are available for trading during all 12-months of the year and are settled by compulsory delivery mechanism. Gold and silver (Bullion) are an inseparable part of Indian society. Bullion has religious and social significance and is valued both as a saving and investment vehicle. These factors have helped India to emerge as the largest importer of gold contributing to around 20 per cent of the world gold demand. Advantages of these two new contracts are that contracts expire on the last trading day of the month prior to the expiry of international bullion futures contract, settlement on expiry at import parity costing real time & transparent international price hedging contracts in rupees for importers and traders. The trading unit of Gold International contract is 1 kg, while Silver International is 30 kg, it said.

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