MCX to launch futures trading in Platinum

MUMBAI: Do you want to trade in platinum futures in India? Yes, it is possible from today onwards. Multi Commodity Exchange, India's largest commodity bourse, is launching platinum futures on Thursday.

MCX, the leader in futures trading in gold, silver and crude oil, is adding another precious commodity by facilitating trading in platinum from today.

Platinum is a heavy, malleable, precious, gray-white transition metal. It is resistant to corrosion and occurs in some nickel and copper ores along with some native deposits. Platinum is used in jewelry, laboratory equipment, electrical contacts, dentistry, and automobile emissions control devices.

Platinum is actively traded abroad at Tokyo Commodity Exchange in Japan and New York Commodity Exchange (NYMAX).

According to MCX Managing Director Joseph Massey, futures trading in platinum is an important step for the exchange. "We are currently the leader in future trading in gold and silver. We are adding platinum to these precious metals group," he said.

He said with presence of a precious metal like platinum, investors will now have more opportunities for investment and the industry can hedge their requirements.

Compared to 2006-07, when 9 tonnes of metal was consumed, the fiscal 2007-08 witnessed utilisation of 10 tonnes of metal. India imports 2 tonnes of metal every year.

MCX said four contracts, each in January, April, July and October will be on offer and the trading lot will be 500 gm. The maximum order size would be 5 kg and the price quote will be ex-Mumbai. The delivery will be made only through designated warehouses from Mumbai.

The price rise witnessed in platinum since 5 years was five times. In 2003, the rates were hovering around $600. The metal at Tokyo Commodity Exchange touched its highest peak of $2,299 per ounce on April 3.

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