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By Siddesh Mayenkar
MUMBAI, April 17 (Reuters) – A new platinum contract was
launched in India on Tuesday to serve a market where the head of
the bullion association said imports could rise by almost half
to 20-22 tonnes this year.
“There is good demand and people think platinum will
outperform gold,” said Anjani Sinha, director of the Indian
Bullion Marketing Association, who also heads the National Spot
Exchange Ltd (NSEL).
The NSEL launched a spot platinum contract, which will be
available in as low a denomination as 1 gram, as well as a 100
gram contract aimed at jewellers.
India already has four platinum futures contracts 0#MPLM:.
“The option of physical delivery in coins or bars form in
multiple locations makes the product all the more attractive
apart from benefits like no storage issues,” said Sinha.
Platinum is mainly used in automotive catalytic converters
but its use in jewellery is also growing.
Platinum jewellery consumption rose 40-50 percent in 2011.
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