Gold prices have zoomed sharply and have recorded the best growth giving over 32 per cent return in fiscal year ending 2024-25. As we write, MCX gold traded below Rs 90,000 per 10 gm levels after breaching $3,200 per ounce in the international markets.

Now as gold has given superior returns and is deemed as a safe-haven together with an inflationary-hedge, the country’s commodity exchange- Multi Commodity Exchange (MCX) has introduced a special 10 gm futures contract. Let’s understand how this gold contract may enable investors to accumulate gold from long-term investment perspective.

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL) held that the newly introduced MCX 10 gm gold futures provide a structured and cost-effective way for investors to gain long-term exposure to gold. Unlike physical gold, futures contracts eliminate concerns about storage, security, and making charges. Investors can systematically invest by rolling over contracts, mimicking a SIP-like approach by averaging out purchase costs over time.

Furthermore, the lower margin requirements allow better capital efficiency than lump-sum investments in physical gold.

Additionally, MCX offers liquidity, transparency, and price discovery aligned with global gold trends, making it an attractive instrument for those seeking long-term gold exposure with flexibility and lower costs.

How MCX 10 gm gold contract can be tapped into for long-term investment into gold?

Explaining the process for investment into gold futures contract, Manoj Jain- Commodity Expert- India Nivesh said, “Investors can lock thier price by just paying 8-10 per cent margin and opt for delivery at the end of every month in demat form.

Also,  delivery can be held for longer period in the MCX demat account.

Jain added that holding charges are as low as approximately 45 per 1 lot of 10gram for one year. Making charges are just 300/- per 10 gram lot.

Also, investors can accumulate gold in demat form looking at their long-term needs for children’s marriage and festival buying. 

Purity is also 999 which is best as per market standard and prices are very much transparent. 

Besides, the expert added that if MCX could allow IGST billing in this product, this could be a game changer for gold industry and will be very helpful for gold investors.

Gold’s outlook

Ajay Kedia of Kedia advisory mentions that in the last one year, gold has scaled 40 per cent.

Key bullish drivers:
* Rising geopolitical tensions
* Global inflation risk from trade/tariff wars
* Persistent recession fears
* Growing de-dollarisation trend
* Rising gold ETF investments globally
* Gold is expected to cross ₹1 lakh in the next 1–1.5 years.