Platinum is the rarest of all precious metals. It has several unique chemical and physical properties that make it essential in a wide range of industrial and Environmental applications.Platinum is also considered as one of the finest of all jewellary Metals.
Platinum is available as coins and bars with many jewelers today,making for easy availability.But with an eye on returns, this is not really the best mode.
There are several reasons for this.
Storing the bars in a bank locker will mean shelling out money on rent. Storage also makes a cost for keeping that Metal.
Electronic Spot Market
Buying platinum in the electronic spot market is the most lucrative way of investing in the white metal. On the National Spot Exchange Ltd (NSEL), platinum (ticker: e-platinum) can be bought in units of one gram and stored in the account in a dematerialised form. De-mat investment makes the process of buying and selling hassle-free.
The exchange’s extended trading hours 10 a.m. and 11.30 p.m..
For Trading E-Platinum,Open a De-mat account with one of the exchange notified depositories is the First step and then get a trading account from any of the NSEL members.
The charges here include the brokerage plus a transaction fee charged on the turnover (Rs 10 per lakh of turnover for delivery-based transaction and Rs 5 per lakh of turnover for squared-off transactions).
To Trade on E-platinum contract, no need to part with the full amount.It is enough to pay just the initial margin.Initial margin on a contract of e-platinum is 5 per cent
Those of who want to take De-mat delivery are alone required to pay an additional margin – and, of course, the full price of the contract. The settlement cycle is T+2, which means the total amount due needs to be settled in two working days.
Physical delivery can be taken in the form of bars/coins.Physical delivery of E-platinum units,will entail an additional charge in the form of VAT and other local taxes.
E-platinum tracks platinum price at London Platinum and Palladium markets converted to rupees – rupee volatility will therefore play a role in returns, just as with gold. Do also note that the demand-supply of eplatinum units on the exchange can influence prices thus altering returns for the domestic investor.
Tax liability
Investment in platinum will draw tax liability under wealth tax and capital gains tax (on gains made in sale). E-platinum units are considered as good as physical holding of the metal and draw tax charges. Long term capital gains (if held for more than 36 months) and short term capital gains will also apply.
Platinum is available as coins and bars with many jewelers today,making for easy availability.But with an eye on returns, this is not really the best mode.
There are several reasons for this.
- The Metal Purity is not guaranteed.
- The wastage charges at the time of re-sale will eat into returns.
- Physical market for platinum is illiquid, quickly cant conversion into cash
- Physical investment is that you have to look for ways to keep it safe.
Storing the bars in a bank locker will mean shelling out money on rent. Storage also makes a cost for keeping that Metal.
Electronic Spot Market
Buying platinum in the electronic spot market is the most lucrative way of investing in the white metal. On the National Spot Exchange Ltd (NSEL), platinum (ticker: e-platinum) can be bought in units of one gram and stored in the account in a dematerialised form. De-mat investment makes the process of buying and selling hassle-free.
The exchange’s extended trading hours 10 a.m. and 11.30 p.m..
For Trading E-Platinum,Open a De-mat account with one of the exchange notified depositories is the First step and then get a trading account from any of the NSEL members.
The charges here include the brokerage plus a transaction fee charged on the turnover (Rs 10 per lakh of turnover for delivery-based transaction and Rs 5 per lakh of turnover for squared-off transactions).
To Trade on E-platinum contract, no need to part with the full amount.It is enough to pay just the initial margin.Initial margin on a contract of e-platinum is 5 per cent
Those of who want to take De-mat delivery are alone required to pay an additional margin – and, of course, the full price of the contract. The settlement cycle is T+2, which means the total amount due needs to be settled in two working days.
Physical delivery can be taken in the form of bars/coins.Physical delivery of E-platinum units,will entail an additional charge in the form of VAT and other local taxes.
E-platinum tracks platinum price at London Platinum and Palladium markets converted to rupees – rupee volatility will therefore play a role in returns, just as with gold. Do also note that the demand-supply of eplatinum units on the exchange can influence prices thus altering returns for the domestic investor.
Tax liability
Investment in platinum will draw tax liability under wealth tax and capital gains tax (on gains made in sale). E-platinum units are considered as good as physical holding of the metal and draw tax charges. Long term capital gains (if held for more than 36 months) and short term capital gains will also apply.
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