Has anyone taken physical delivery of gold through MCX futures?

Commodities
1

Has anyone taken physical delivery of gold through MCX gold/goldmini/goldguinea/goldpetal futures?

I want to know their experience?

What additional charge did you have to pay apart from 3% GST? Was there any additional tax, cess, octroi or surcharge levied on the future contract value?

Generally MMTC PAMP has high making charges around 9% on gold price plus GST. I want to know if it is worth buying through MCX futures, and if money can be saved through MCX.

Also please share your experience visiting the warehouse and getting the physical delivery. Did you get it assayed in front of you or just accepted their certificate?

Thanks a lot.

Edit: also, which broker did you use, because zerodha doesn’t allow physical delivery in commodities.

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No replies! No one here has taken physical delivery through MCX? :thinking::thinking:

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I have the same questions. I would like to take physical delivery of Gold.
MCX does have a list to approved brokers. But I don’t know if they provide physical delivery of not.

Authorized brokers

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I am also interested in knowing about this.

I had seen a video on the Youtube channel of MCX (starts at 12:55), where they mentioned that the making charge is only Rs.100 (per gram) over the trading price if one wants to take delivery. This got me interested

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I have active zerodha + another brokeraccount.
no one dealing with online retail is giving delivery option.
I spoke to MCX metal delivery team .They refused to give me list of their dealers who will give/accept delivery against MCX contract.(I was more interested in silver 1 kg bar against SILVERMICRO futures contract.)
I even spoke to few big ahmedabad based bullion wholesalers.(MCX silver delivery is based on Ahmd spot price)
The MCX rep hinted to me to that only physical bullion big dealers “who trade for themselves with MCX with MCX membership” to hedge/arbitrade "are taking or giving /accepting delivery in gold & silver.
They dont have retail customer who trade online like us.
So we serfs want physical have to go the local bullion wholesaler & buy it with full payment at a premium or discount on the market mood supply/demand that day.

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I had come across a tweet where it was mentioned that around 30,000 1gm Gold Petal contracts have been delivered till early December 2020. But after reading about your experience, it seems that retail investors might not be the ones who took these Gold Petal contract deliveries.

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hey, I also have the same query, did you find something else or have any additional information regarding this? thanks in advance.

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@Prayag , @Praksy ,
John Turner in this question has given wonderfull answer.

in a nutshell

  1. Gold producers are allowed to oversell by absurd degrees on MCX.

  2. They can be as oversold as less than 1% delivery upon contract completion and rest 99% in next 5+years in small increments.

  3. Actual production per mine operation has been in decline for two decades, and total gold weight getting sold keeps increasing.

  4. Many newer operations, close within ten years of opening.

  5. All contracts are written with delivery cost carried on the buyers end but using their preferred courier.

  6. Most maturing contracts really just entitle you to a portion of the bullion in some vault rather than to grams of Au crossing your actual threshold.

so they are milking the casual investor is the name of the game in today’s gold futures market.

Don’t get excited by lucrative gold price on MCX compared to our local bullion price. Futures contracts are just for speculation of price of gold in future nothing else (although people explaining what is futures and options in youtube tell, that it’s for delivery, i think it has been an old theory, gone long back).

I was also finding cheaper option to buy gold, but got amused to know, that the way we take leverage in F&O, even seller is taking leverage :joy::joy::joy:. the whole economy is just made into a bigger bubble using leverages.

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