Gold is a valuable, yellow metal that has a bunch of fascinating properties. It is usually found naturally in an alloy form, and rarely in its pure state. It is extremely malleable and highly resistant to the corrosive elements in the air. These properties make it one of the most important raw materials for industries, dentistry and jewellery. Gold is also considered a very secure type of investment and is a popular choice for coverage in critical times. Its high value and singularity ensure that its prices remain perennially favourably, even in economically difficult times.
GoldM or gold mini is a type of gold contract. The trading unit is 100 gm, and the maximum order size is 10kg. A contract for GoldM starts on the 6th day of the month of the contract launch and the trading period is Monday to Friday. GoldM prices are displayed online on multiple websites. You can check the GoldM live price online daily, to grasp the trend the GoldM price is following currently. The GoldM live price is 38,121 per 10 gms, on 18th October 2019.
Types of Contracts
For the purpose of trade, gold is available in quite a few varieties one can choose from. If you are new to this, it is important to understand the difference between these contracts to select the one that best suits your needs. Even an experienced trader can benefit from skimming through the details of these contracts. The different types of gold contracts available are- Gold (the big gold), gold guinea, gold mini and the gold petal. The easiest way to understand the difference between these is by looking at the contract specificities of each. The lot sizes of the various types of contracts are; Gold for 1 kilogram, gold mini for 100 gm, gold guinea for 8gm and 1 gm for the gold petal.
The big gold contract orders a requirement for a hefty margin in Rupee value. This automatically restricts the number of merchants who can trade in big gold, and this might be the reason that the exchange introduced contracts with much lower margin requirements. The margins required for big gold and gold m contracts are almost identical, in terms of their percentage. This makes GoldM the ideal choice for investment.
If you are trading in gold, it is wise to go with either a big gold contract or a GoldM contract, majorly because the liquidity rates are quite low in the remaining contracts. To put things in perspective, these are the various liquidity rates on a normal trading day-
- Big gold contracts (12 – 13K lots)
- GoldM contracts (14-15k lots)
- Gold Guinea contracts (1-1.5K)
- Gold petal contracts (8-9K)
Note that the GoldM rate and big gold rate are almost identical.
Investors around the world display a fairly predictable behaviour- during times of economic uncertainty, they rush to buy gold. Gold has always been viewed as a secure asset that shields investments against any type of rough economic patch, and GoldM even more so. Some factors that influence GoldM price are consumption demands, inflation, the rupee-dollar relationship, weakening dollar, and geopolitical factors. These factors also impact the GoldM live price to quite an extent.