The futures measure was originally developed to meet the needs of the farmers and merchants. A futures contract is an agreement to buy or sell a standard quantity of a specific instrument at a predetermined future date and at a predetermined price agreed upon. Among the various categories of futures, one is the methodological category that includes genuine metals and petro-products.

Thus, if the gold futures in the Indian market present a good outlook, then the government may come up with trading of other precious metals too.The "Golden Bird" has moved back-in for the Gold Futures in the official channels in August last year. India known for being the world's largest consumer of gold1 and silver2, has finally re-allowed its markets to have the futures trading in both commodities after four decades, since 1962.

For centuries, gold has enjoyed the unique blend of rarity, beauty, and insatiable desire. Nations have embraced gold, be it for store of wealth (reserves); a medium of international exchange; currency or a branding symbol. Not only the nations, but also individuals have sought it as an insurance against future uncertainties and secure reserves. gold has passed the test of time with the increase in price above the inflation index and its demand with the growth of population worldwidesee Graph 1.

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