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PMEX’s ‘milli tola gold’ – little investment big savings

Published on 4th July, Edition 27-28, 2016

 

Pakistan Mercantile Exchange Limited (PMEX) is Pakistan’s first demutualized and the only multi-commodity futures exchange, which is licensed and regulated by the Securities and Exchange Commission of Pakistan (SECP).

Its stakeholders include leading financial institutions and stock exchanges of Pakistan. The Exchange offers a diverse range of domestic and international commodities and financial futures. Its infrastructure is based on sophisticated and state-of-the-art technology comparable to similar exchanges around the world that offers a complete range of services, i.e. trading, clearing and settlement, custodial and back office.

Milli Tola Gold is a new product that was launched by PMEX in December 2013. As the name suggests, it represents 1000th part of a Tola. The minimum amount required to purchase Milli Tola Gold is approximately Rs50 based on currently prevailing price of gold that is approximately Rs50,000. Thus, a single Milli Tola Gold contract is worth approximately Rs50. The price of the contract will change if the price per Tola Gold changes.

Besides Milli Tola Gold, PMEX also offers gold in denominations of 1 ounce, 10 ounces, 100 ounces, 10 grams, 100 grams, one tola, 50 tolas, 100 tolas, and even one kilogram.

For centuries gold has been termed as a ‘safe heaven’ and some of the factors supporting this include:

– Relatively safe investment option for investors of all ages and gender

– Price of gold is less volatility as compared to other investment opportunities

– Within precious metals it is one of the most popular investment option

– Provides a hedge against economic, political, social and currency risks

– An option to diversify investment portfolio

– It is easily convertible into cash

Salient features of PMEX’s milli tola gold:

– Start from little: One can buy gold with an amount as low as approximately Rs50 [subject to prevailing price at the Exchange]

– Incentive: PMEX offers the incentive of free of cost custody and free insurance

– Security: Gold purchased by investors is kept in secure vaults

– Convenience: PMEX offers the convenience of hassle free buying and selling of gold from anywhere with a single click

– Liquid: Selling gold kept with PMEX is easily en-cashable within 24 hours after the execution of sale at the Exchange

– Physical Delivery: Investor can get physical delivery of gold once the investment becomes equal to 10 Tola of gold

– Monitoring: Monitoring of portfolio is easy because PMEX sends SMS Alerts of all transactions

– Purity: Gold being sold at PMEX is authentic 24 Karat (99.90%)

If anyone wants to start investing in gold through PMEX, then they may follow the steps mentioned below:

Step 1: Log on to PMEX website www.pmex.com.pk and download the list of brokers. Alternatively, call us at +92-21-111-623-623 and our customer support representative will guide you and provide the necessary information

Step 2: Open an account with one of the brokers registered with PMEX

Step 3: Deposit funds with the selected broker for purchasing gold

Step 4: Place buy instruction to broker or alternatively request the broker for an ID and a password to undertake transaction at your own convenience from anywhere in the world through internet.

*The author is Head of Marketing, Business Development and Customer Support Services at Pakistan Mercantile Exchange Limited (PMEX).

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