Page 2 - MEX Express - Vol 6 Issue 2

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www.mexnepal.com FACTS AND FIGURES Volume: 6 • Issue: 2 • Year: 2014 A.D

Market Capitalization - Futures Contracts Know Your Commodities
From April 2014 - June2014 (in%)
Silver
Market Capitalization of all the future contracts listed in the MEX
terminal. Gold has the maximum capitalizaiton followed by Micro Gold Introduction Fundamental Facts
& Micro Silver.
Silver (Ag) with an atomic • The major producers of silver SILVER FUTURES -
Market Capitalization - Spot Contracts weight of 47 is a precious are Mexico, China, Peru, Australia and CONTRACT SPECIFICATIONS
From April 2014 - June 2014 (in%) metal due to its rarity and Chile. Any news regarding the production
has got prized possessions. It is a white, patterns from these countries affects the Name Silver
Market Capitalization of all the spot contracts listed in the MEX soft, lustrous transition metal with noble prices of silver. Symbol SIL
terminal. Nano Gold continues to have the maximum capitalization characteristics resisting the corrosion and Contract Size 30,000
followed by Gold and Nano Silver . oxidation although not as much as gold. • United States, India, Japan Unit Grams
Silver is considered as the best thermal and Italy are the most silver consuming Price Quoted NPR / 10 Grams
and electrical conductor among all the nations in the world. The demand patterns Trading Hours Session1 00:00-02:45
metals. It is highly malleable and ductile from these countries are likely to affect Session2 03:45-00:00
which crafts it as one of the preferences for the prices of silver. Quality Reﬁned Silver, .999
numerous industrial applications. Silver ﬁness
occupies the middle ground position • US Dollar and Euro are the Contract Months March, May, July,
between industrial metals like copper major currencies affecting the prices of September &
and investment vehicles like gold. The silver. December
constituent uses of silver are industrial
(46%), investment (27%), jewelry and • Industry, decorative uses, DELIVERABLE SILVER -
silverware (20%) and photography (7%). photography and jewelry accounts for CONTRACT SPECIFICATIONS
Silver is often considered as the “poor 95% of annual silver consumptions.
man’s gold” as it is much cheaper than Name Delivery Silver
other precious metals and is available • Global silver mine production Symbol DSILVER
to the people with low income bases. grew last year, by 4%, rising to a new Contract Size 20,000 & 1,000
Though investors ﬁnd it less attractive record of 787.0 Moz (24,478 t) in 2012. Unit Grams
for investment in comparison with gold, The by-product output from the lead/zinc Price Quoted NPR / 10 Grams
silver has instantaneously advanced its sector provided much of the growth, up by Validity T + 15 days (T stands
price for the past 10 years. Its unique 9%, with strong growth in China, Mexico Storage Cost for Trade day, and 15
properties make it ideal for thousands and India. consecutive days)
of applicants used in everyday life. The Initial Margin Applicable if physical
top four producers in the year 2012 were • Primary silver total cash costs Delivery Center delivery is not taken
Mexico (162.2 million of ounces), China rose by 9%, to $8.88/oz, as credits from after full payment; till
(117 million of ounces), Peru (111.3 base metal by-product revenues fell, Delivery Logic the customer takes
million of ounces) and Australia (56.9 coupled with lower grades and higher Trading Hours the delivery. Charges
million of ounces). While looking at the input cost inﬂation. as prescribed by
consumption side, the largest consumer Quality Bank.
of silver is the United States followed by • The de-hedging of silver 15% of Contract
India, Japan, and Italy. contracts reduced by 43%, total fabrication Value
dropped by 6.6% consisting of industrial Century Commercial
Producers Consumers fabrication and jewelry fabrication, Bank (All branches
implied net investment surged by 21%. inside Kathmandu
Mexico (162.2 million ounce) USA Valley, Biratnagar,
• Jewelry fabrication remained Janakpur, Pokhara,
China (117 million ounce) India broadly ﬂat as robust demand in India Birgunj & Butwal) or
and China offset losses in the developed any other branches
Peru (111.3 million ounce) Japan world. speciﬁed by Bank.
Compulsory
• Coins & medals fabrication 11:00-16:00
eased but remained elevated by historical (Monday-Thursday)
standards. 11:00-13:00
(Friday)
• Producers’ hedging activities Reﬁned Silver, .999
switched to the demand side. ﬁness

Australia (56.9 million ounce) Italy

Major Market Movers for Silver & Gold(1st April-30th June 2014)

Silver 35000 Gold
30000
Prices 600 Prices 25000
500 20000
400 15000 1/4/2014
300 10000 3/4/2014
200 7/4/2014
100 5000 10/4/2014
0 1/5/2014
0 5/5/2014
1/4/2014 7/5/2014
Note: 10/4/2014 Note: 28/5/2014
30/4/2014 6/6/2014
Date 1/5/2014 Date 12/6/2014
1/4/2014 14/5/2012 1/4/2014 30/6/2014
10/4/2014 30/5/2012 3/4/2014
30/4/2014 5/6/2014 7/4/2014
1/5/2014 16/6/2014 10/4/2014
14/5/2012 27/6/2014 1/5/2014
30/5/2012 30/6/2014 5/5/2014
5/6/2014 7/5/2014
16/6/2014 News 28/5/2014 News
27/6/2014 Opening Price as of 1st April 2014 6/6/2014 Opening Price as of 1st April 2014
30/6/2014 Physical Demand from China 12/6/2014 Encouraging US employment market
Wait for the Fed decision on the stimulus 30/6/2014 Focus on ECB monetary decision
Easing of tensions in the Ukraine Demand from China became quieter than expected
Optimism in the market Imbroglio created due to tensions in Ukraine
Assumption of faster growth in USA Wait and Watch among the market participants
Continuation of hedging the risks ECB policies supported the Price
Speculations of the decreased inventory Demand pressure slashed
Increase in Consumer Conﬁdence Index Negotiated Geo-political tensions between Iraq and USA
Closing Price as of 30 June 2014 Conclusions of Fed Policy Meeting
Closing Price as of 30 June 2014

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