Inter-country commodities arbitrage

#1
Hi,
I am noobie to the commodities market and come from an engineering background.

There are a few topics i would like to gain a little insight in.

1. I couldn't help but but notice the price difference of almost 17% in various commodities like gold,silver,brent crude between the Indian markets and the US,Dubai markets.Why so much variation?

2.I would also like to know if this can be profited from without getting involved in physical deliveries?

3.Can we use instruments like futures to profit from this price variation?

4.I have a couple of friends in the US and UAE who can help me out setting up trading accounts with local brokers in the US and Dubai and manage it for me.
How can i leverage this?

4.What is the investment I have to put in and what is the ROI i can expect?

:confused:
 

anuragmunjal

Well-Known Member
#2
hi.

gold, silver have import duty in India. after factoring in transportation cost, cost of fund and duty, I do not feel you will get a meaningful return. brent crude is illiquid in India.

regards
 

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