Retail investors can buy gold and silver at live, exchange-linked prices and take physical delivery through a single platform as investment app Dhan rolls out a new service called Gold Vault.
It is a bridge between derivatives trading and physical ownership. It enables users to participate in bullion futures contracts linked to prices on the Multi Commodity Exchange of India (MCX), and then opt for physical delivery of the underlying gold or silver.
Settlement is handled through MCX Clearing Corporation, which operates according to the regulatory framework of the Securities and Exchange Board of India (Sebi). That embeds the settlement within the formal capital markets ecosystem, rather than treating it as a standalone bullion purchase.
Gold Vault subscribers can:
Buy gold or silver at live MCX-linked prices
Hold the position digitally via the platform
Choose to convert holdings into physical bullion through delivery
Why this matters for retail investors
Gold is a core part of Indian household portfolios, typically held as jewellery or coins bought from local jewellers. However, purchases often involve pricing opacity, making charges, and storage risks.
Gold Vault attempts to address these frictions:
Transparency: Prices are linked directly to MCX benchmarks, reducing the risk of arbitrary mark-ups that are common in retail bullion markets.
Regulated ecosystem: Transactions are routed through Sebi-regulated infrastructure, which improves investor protection compared to informal channels.
Optional physical delivery
Unlike gold exchange-traded funds (ETFs) or sovereign gold bonds, investors are not restricted to financial exposure — they can take delivery if they want to hold physical metal.
Integrated investing experience
Investors who already trade on Dhan can add gold exposure without shifting platforms or dealing with separate vendors.
How it compares with existing gold investment options
Indian investors currently have multiple routes to invest in gold, each with distinct trade-offs
Physical gold (jewellery, coins, bars): Tangible but expensive due to making charges and storage concerns
Gold ETFs: Transparent pricing and liquidity, but no physical delivery
Sovereign gold bonds: Government-backed with interest income, but lock-in periods and no immediate liquidity
Digital gold platforms: Easy access but often outside strict capital market regulation
Costs and risks to consider
Despite the apparent advantages, investors should assess the structure carefully:
Futures-linked exposure
Since the service is based on bullion futures, pricing may reflect contract-specific dynamics, not just spot gold prices.
Delivery logistics and charges
Physical delivery is unlikely to be cost-free. Storage, insurance, and delivery charges could affect overall returns.
Market volatility
Gold prices can fluctuate sharply in the short term due to global macroeconomic factors, currency movements, and interest rate changes.
Liquidity considerations
Exiting positions may depend on futures market liquidity, which can vary across contract tenures.
Industry view and positioning
Dhan’s founder Pravin Jadhav described the service as one that Indian investors “have always wanted”, highlighting the demand for a more seamless way to access physical bullion through financial markets.
From the exchange side, Praveena Rai, managing director and chief executive officer of MCX, said the development could improve transparency, accessibility and security in gold investing, news agency PTI reported.
(with inputs from PTI)