Delhi, the national capital of India holding a huge population of the country is the largest consumer of gold. Commodities such as jewellery, coins, gold bars are traded from Delhi past many years. Influenced by various factors, the gold rates in the territory vary with the global implications. With a huge buyer-base or population in the area, trade and exchanges of this metal is often performed for various reasons.
Customer trade gold for numerous commodity exchanges such as Multi Commodity Exchange (MCX), National Spot Exchange (NSEL) and National Commodity and Derivatives Exchange (NCDEX). The transaction may be on the spot contracts or future contracts where the former is about exchanging gold then and there and later is about trading gold on a future date for the transaction taking place today.
The gold sales may be in physical gold or gold contracts. The physical exchange is popular for jewellery, ornaments, coins, gold bullion, etc.
The people of Delhi use a large amount of physical gold for jewellery and ornament making purposes encouraging huge demand of gold dealers in the territory. One can find the biggest gold dealers along with private institutions and banks in the city.
The gold contracts are bought from commodity exchanges in India. There might be contracts for varying quantities of gold such as 8 or 10 or even 100 grams, or measurement in kilos. The contracts purchased for the gold are further available in different purities such as 995 purity, 999 purity, etc.
Gold is a commodity sold in grams, kilos, tonnes, etc. The base price may be for 1 gram or 10 grams of gold.