BFX Gold Futures
Gold is considered predominantly an investment asset with demand in the form of bars, coins and jewelry contributing to a substantial percentage of the total demand. Other uses for Gold include dentistry, electronics and investments such as ETFs. The supply of precious metals mostly depends on the global mine output. Since 2007, China has emerged as one of the largest producers of Gold in the world, apart from South Africa. The recycled (scrap) Gold is also a major source of supply. India and China are the largest consumers of Gold jewelry, bars and coins.
London, Zurich and New York have evolved as some of the most important global markets for trading in Gold. Demand for physical Gold has been increasing in Asia in the last couple of decades. India, China (especially Hong Kong) and Singapore have become major centres for Gold trading. The Middle-East region has also become a major centre for bullion trading - trading value in Gold jewelry, bars and coins across the Middle-East region has increased to US $9.13 billion for the 12-month period ending in Q3 2012. Saudi Arabia, UAE, Turkey and Egypt are some of the largest consumers of Gold in the Middle-East region. Among major Gold consuming countries in the world, Saudi Arabia has one of the largest per capita consumption (approx. 3.50 grams per capita) of Gold. Bahrain (situated in close proximity to Saudi Arabia) has evolved as an international financial centre for market participants to hedge against commodity price risk.
The BFX Gold Futures facilitates market participants to mitigate risk against volatile Gold prices. The BFX Gold Futures are available for trading in the contract size of 32 troy ounces. The contract is quoted in US dollars and cents per troy ounce. The BFX Gold Futures are aligned with the prices in the international reference markets, so as to provide a uniform price risk management strategy for market participants. The final settlement price is based on the equivalent futures contracts traded in the New York markets. The trading hours are aligned with the peak period (for active trading) in Asia, Europe and the US markets.
For more information on the BFX Gold Futures product booklet, please click here
For more information on the BFX Gold Futures contract specifications, please click here
BFX MCX $ Gold Futures
India is the largest importer and consumer of Gold in the world, accounting for over 27% of the global demand for gold jewelry, coins and bars in the calendar year 2012. The demand for gold in India has become an important price driver for the global markets. If the demand during the festival or marriage season in India increases, this usually results in bullish Gold prices. Alternatively, if the demand of Gold from India decreases, then the Gold prices in the global markets usually decrease. The global Gold markets in London and New York obtain price cues directly from the Indian markets, depending on the Indian Rupee rate for Gold. The US dollar versus the Indian Rupee (USD-INR) currency pair impacts the parity price of Gold between the Indian markets and the International markets.
It is in this perspective that the BFX has launched the MCX $ Gold Futures, thereby, facilitating hedgers, arbitrageurs and investors to directly obtain exposure to Gold prices benchmarked to the Indian bullion markets. The BFX MCX $ Gold Futures is quoted in US dollars and cents per 10 grams with a contract size of 1 Kilogram, thereby, aligning its prices with the MCX Gold futures that is based on the Gold prices in Ahmedabad (Gujarat), India - which is a major centre for bullion trading.
For more information on the BFX MCX $ Gold Futures product booklet, please click here
For more information on the BFX MCX $ Gold Futures contract specifications, please click here
BFX Silver Futures
Over 63% of the total demand for Silver is for industrial applications (including photography, electronic equipments, etc.). Other important demand drivers are Silver jewelry, Silverware as well as investments in bars, coins and ETFs. Over 73% of the global silver supply is dependent on mine output. Silver is usually produced as a by-product in the process of mining base metals. Mexico, Peru, China, Australia and Chile are some of the largest producers of Silver.
Spot Silver prices increased from USD 6.400 per troy ounce in Jan 2005 to over USD 49.790 per troy ounce in Apr 2011 before decreasing to USD 26.160 per troy ounce in Jun 2012. As on 18th Jan 2013, spot Silver prices were trading at USD 31.865 per troy ounce.
The BFX Silver Futures (Symbol: BFXSLVR) enables market participants to hedge against price volatility. The final settlement price of the BFX Silver Futures is based on the equivalent Silver futures traded on the New York markets, thereby, aligning the prices of the BFX Silver Futures with the international reference markets. The BFX Silver Futures has a contract size of 1,000 troy ounces facilitating the participation by jewellers, importers, exporters, financial institutions, corporates as well as retail investors.
For more information on the BFX Silver Futures product booklet, please click here
For more information on the BFX Silver Futures contract specifications, please click here
BFX MCX $ Silver Futures
Global spot Silver prices peaked at USD 49.790 per troy ounce in April 2011, an increase of 1,132% from USD 4.040 per troy ounce in November 2001. As on 15th of February 2013, spot Silver prices were trading at USD 29.800 per troy ounce. Silver prices are predominantly dependent on Industrial demand (industrial applications account for over 55% to 60% of the total Silver demand). The overall global economic growth has a bearing on the volatility of Silver prices.
India has emerged as one of the top three consumers of Silver, with an annual estimated demand for fabrication of around 3,000 tonnes (constituting between 10% and 14% of the global fabrication demand for Silver). India is the leading market for silverware and silver-based jewelry. India is one of the largest importers of Silver, which is considered as an Investment asset in the form of coins and bars.
The launch of the BFX MCX $ Silver Futures shall benefit global market participants to trade on Silver priced on the Indian markets. This is also expected to bridge the price differential across global markets, thereby, providing uniformity in the global price discovery mechanism. Hedgers, Arbitrageurs and Investors can directly obtain exposure to Silver prices benchmarked to the Indian bullion markets. The BFX MCX $ Silver Futures is quoted in US dollars and cents per one Kilogram with a contract size of 30 Kilograms. The MCX Silver futures contract is based on the Silver prices in Ahmedabad (Gujarat), India - which is a major centre for bullion trading.
For more information on the BFX MCX $ Silver Futures product booklet, please click here
For more information on the BFX MCX $ Silver Futures contract specifications, please click here