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Dhan, a growing investment platform, has introduced Gold Vault to make buying physical gold and silver more accessible and transparent for retail investors. The service connects directly to MCX prices, aiming to cut out the markups and hidden spreads common in traditional gold purchases.
Tackling Gold Buying Worries
Buying physical gold in India has long faced issues with purity, pricing accuracy, and secure storage. Dhan's Gold Vault directly addresses these problems. It offers a regulated way to buy physical gold and silver, with assets acquired at live prices directly from commodity exchanges.
Regulated and Secure Storage
Gold Vault operates within the SEBI-regulated capital market framework. Transactions are settled through MCXCCL, providing a secure, regulated path for investors. The purchased gold and silver are stored in exchange-regulated vaults using ComRIS accounts, a system usually for institutional investors. This setup greatly reduces the risk from other parties.
Bringing Investment to More People
Pravin Jadhav, Dhan's Founder and CEO, stated that the product is built on investor safety, citing "exchange settlement contracts, regulated vaulting and zero counterparty risk" as key. Jay Prakash Gupta, Founder and COO, added that Dhan is making investment methods typically only available to sophisticated market participants accessible to more people. Praveena Rai, Managing Director and CEO of MCX, noted the potential for Gold Vault to boost transparency and accessibility in gold investing. This move comes after Dhan's recent acquisition of algorithmic trading platform Stratzy.