India’s gold exchange system converts physical gold into electronic gold receipts that can then be traded and held in investors’ portfolios. Across the supply chain, physical gold is stored in vaults before being linked to electronic receipts. These receipts are managed through depositories, which handle the record-keeping and custody arrangements that allow ownership to change without repeatedly moving the underlying metal. As a result, the same gold can be represented by different electronic receipts over time as trades occur. The process involves transfers through established market infrastructure—moving from physical storage facilities to electronic custody mechanisms, and then into trading platforms such as stock exchanges. With each transaction, ownership of the electronic receipt can change hands multiple times while the underlying gold remains under the system’s custody arrangements. The overall structure is designed to support trading of gold in a standardized, electronic form, so that investor access does not require direct physical handling at every trade. Sources describe the lifecycle of an electronic gold receipt as a sequence of vault storage, depository records, and exchange trading.
How India’s gold exchanges move physical gold into electronic receipts
India’s gold exchange system converts physical gold into electronic gold receipts that can then be traded and held in investors’ portfolios. Across the supply chain, physical gold is stored in vaults...
- Electronic gold receipts represent ownership linked to physical gold stored in vaults.
- Physical gold is handled through vault custody before being represented electronically.
- Depositories manage electronic records that enable trading and ownership transfer.
- Gold receipts can change hands multiple times through exchange trading platforms.
- The system reduces the need for repeated physical movement during each transaction.
Every electronic gold receipt has a story before it reaches your portfolio; a journey from physical gold through vaults, depositories and stock exchanges, it can change hands countless times
16 hours agoEvery electronic gold receipt has a story before it reaches your portfolio; a journey from physical gold through vaults, depositories and stock exchanges, it can change hands countless times
16 hours ago
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