National Spot Exchange Limited (NSEL) enables you to buy Gold, Silver in electronic form through Demat Account.
First of all you will have to open a Demat and Trading account with one of the authorized participants with NSEL. And you can open the Demat Account from any of the below authorized depository participants (DPs) such as,
- Globe Capital Market Limited
- Religare Securities Limited
- Goldmine Stocks Pvt. Ltd
- M/s. IL & FS Securities Services Limited
- Karvy Stock Broking Limited
- Monarch Project & Finmarkets Ltd
- SMC Global Securities Ltd
- SSD Securities Limited
- Alankit Assignments Ltd.
- Zuari Investments Ltd.
- Stock Holding Corporation of India Ltd.
- Aditya Birla Money limited
- Apollo Sindhoori
- India Infoline Ltd.
- Master Capital Services Ltd.
- LSE Securities Ltd.
- Geojit BNP Paribas Financial Services ltd
- Farsight Securities ltd
- Eureka Stocks & Share Broking Services limited
- Microsec Capital ltd
- Ashika Stock Broking limited
- Anand Rathi shares & stock brokers ltd
- IFCI Financial Services limited
You can expect to pay an initial charge of about Rs. 350-450 for opening the Demat account depending on where you are opening the account, and then expect a slightly lower AMC (Annual Maintenance Charge) of about Rs. 250 or so every year on this account. You will require documents such as PAN, 3 passport photographs, bank proof, and address proof ect.
Even you can visit NSEL site for the Account Opening Procedure
How to Buy:
You can trade the E-Series (E-Gold, E-Silver, E-Copper, E-Zinc, E-Lead, E-Nickel) from 10:00 in the morning to 11:30 in the night on weekdays, and the settlement is done on a T+2 basis.
E-Gold units can be bought and sold through the exchange (NSEL) just like shares. Here one unit of e-gold is equal to 1 gram of gold.
E-Silver units can be bought and sold through the exchange (NSEL) just like shares. Here one unit of e-silver is equal to 100 gram of Silver.
The commission/charges to transact is about 0.5% if you take the delivery, and 0.05% for intra – day trading. Do note charges may differ from broker to broker.
If an individual wants to take physical delivery of units then he/she can take it in a specified multiple also. Currently the exchange has delivery centres at Ahmedabad, Delhi and Mumbai. In due course of time the exchange plans to open more delivery centres in other cities.
Rematerialization i.e. physical delivery, then the charges for conversion of e-gold/e-silver into physical gold/silver will be as per the current rates of VAT on the value of goods including brokerage charges.
The Best Part:
By buying gold/silver in electronic form (demat), the individual need not worry about the purity of gold/silver, storage costs and the insurance. If the individual has bought e-gold/e-silver only for investment purpose and he/she does not need to take delivery in physical, then he/she can always sell the e-gold/e-silver units and encash them.