commodity trading, and the current Indian and worldwide trading scenarios for each of the

commodities listed before.

4.2.1 Gold

Introduction

In the history of the world, gold has always been the most sought precious metal. Everyone's
opinion of gold is based on the fact that it is nearly constantly in demand, despite its relative
rarity; despite this, gold is the most widely distributed valuable metal. It is extensively sought
for and held by most countries, and it can be found in most countries – from tropical areas to
icy Siberia – as well as being manufactured in significant quantities throughout nations. Gold
was once heavily mined in Africa; however, it is now discovered and processed in various
nations, including South America, Europe's Transylvania, Asia's Siberia, North America's
California, and Australia. Gold can be found as nuggets or grains in rocks, veins, and alluvial
deposits in nature. It is the world's most malleable and ductile metal. It does not oxidise in air
or water and retains its bright yellow brilliance. According to the GFMS gold survey report
2013, around 174,100 tonnes of gold were mined through 2012. It is also frequently utilised as
a form of alternative currency across the world. Gold has many practical applications in
dentistry, electronics, and other industries, in addition to its vast monetary and symbolic roles.
Its strong malleability, ductility, corrosion resistance, resistance to most other chemical
reactions, and electrical conductivity have led to a variety of applications, including electric
wire, coloured glass manufacture, and gold leafing. However, the amount of gold in the world
is limited, and production has not kept pace with global economic growth. The production of
gold mining is currently falling. The world's gold reserves and trade market have become a
small proportion of all markets, and fixed exchange rates of currencies to gold have become
unsustainable due to the rapid rise of economies in the twentieth century and increased foreign
exchange.

Futures trading – benefits to the economy

India, as a significant consumer, requires integration into global markets. Price

discovery and risk management are more efficient in developed economies. Having a
futures market in India will allow Indian value chain participants to participate in the
above process while also mitigating price risk.

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