Dhan Launches 'Gold Vault' for Seamless Gold Investment and Delivery
Dhan rolls out 'Gold Vault', brings MCX-priced bullion with delivery option
Business StandardImage: Business Standard
Dhan, an investment app, has introduced 'Gold Vault', allowing retail investors in India to buy gold and silver at live prices linked to the Multi Commodity Exchange of India (MCX) and opt for physical delivery. This service enhances transparency and investor protection while bridging the gap between derivatives trading and physical ownership.
- 01Dhan's 'Gold Vault' connects futures trading to physical gold ownership.
- 02Investors can buy gold at live MCX prices and choose physical delivery.
- 03The service aims to improve transparency and reduce costs associated with traditional gold purchases.
- 04Gold Vault operates within a regulated framework, enhancing investor protection.
- 05Investors should consider potential delivery charges and market volatility.
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Dhan has launched 'Gold Vault', a new service enabling retail investors in India to purchase gold and silver at live prices linked to the Multi Commodity Exchange of India (MCX) and opt for physical delivery. This platform serves as a bridge between derivatives trading and physical ownership, allowing users to engage in bullion futures contracts while having the option to take delivery of the underlying assets. The service is designed to address common frictions in gold purchasing, such as pricing opacity and high storage risks. By linking prices directly to MCX benchmarks, 'Gold Vault' aims to provide transparency and reduce arbitrary mark-ups typical in retail bullion markets. Transactions are conducted through a Sebi-regulated infrastructure, enhancing investor protection compared to informal channels. Unlike gold exchange-traded funds (ETFs) or sovereign gold bonds, investors can hold physical metal if they choose. However, potential investors should consider the costs associated with physical delivery, including storage and insurance, as well as market volatility affecting gold prices. Dhan's founder, Pravin Jadhav, emphasized the demand for this seamless access to physical bullion, while MCX's CEO, Praveena Rai, noted that the service could enhance transparency and security in gold investing.
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'Gold Vault' could make gold investment more accessible and transparent for Indian households, potentially reducing costs associated with traditional purchases.
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