DELIVERY BE MADE MUST IN GOLD SILVER TRANSACTIONS IN COMMODITY EXCHANGES

DELIVERY BE MADE MUST IN GOLD SILVER TRANSACTIONS IN COMMODITY EXCHANGES

TRADERS WORRIED OVER MAJOR FALL IN PRICES OF GOLD SILVER


The recent major fall in prices of Gold and Silver has worried the
traders dealing in Jewellery and Bullion which has caused immense loss
to not only the small traders but even people in general have been
greatly effected with the price fall- said the Confederation of All
India Traders (CAIT) today. The transactions of Gold and Silver
conducted in Commodity Exchanges are purely of speculative nature and
there is no provision of mandatory delivery which often causes
instability in the prices. The Government should tight the rope in
order to control the business of commodity exchanges. CAIT Secretary
General Mr. Praveen Khandelwal said that to protect the public and
small traders from the clutches of speculative trading in commodity
exchanges, the Government should take action to monitor the business
done in Commodity Exchanges.


Mr. Khandelwal and Mr. Bimal Goel, President, Delhi Bullion &
Jewellers Association said that small traders who have bought Gold and
Silver at higher rates have become victim of major price fall and
since they have limited capital, it has wreck their bone. They dnt
have any other way but to suffer huge losses. Generally traders have a
profit margin ranging from 1% to 2% in Gold and Jewellery but the
steep fall of about 20% in prices of Gold and Silver have brought much
instability in their business.


Mr. Khandelwal and Mr. Goyal have suggested the Government to make a
provision of mandatory delivery within three days of the transaction
of Gold and Silver made in Commodity Exchanges. Presently there is a
period of two months for delivery but it is not mandatory and thus
most of the business conducted in Commodity Exchanges remains
speculative. They hoped that the Government will certainly look in to
the matter and will take appropriate actions immediately. They have
also demanded the Government to consult the traders before taking any
steps.