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Mercantile Exchange Nepal Limited
Invest - Trade - Earn
An ISO 9001:2008 Certified Exchange
KYC: Silver
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From the CEO’s Desk
Amidst ongoing turbulence in
Nepalese commodity market,
by understanding and identifying the
need and desperateness of the market,
we, MEX Nepal, are shortly launching
a new market model. As we have been
rigorously putting our hands together to release the sought
market mechanism and the associated trading platform at the
earliest, the release of the model is expected to be out in the
ensuing days.
Understanding the gravity and magnitude, and keeping into
account the much hyped regulation on the commodity market,
we have endeavored to align the new market mechanism
with the proposed regulatory requirements and the market
fundamentals. The trading mechanism is believed to be
significantly unaffected once the regulation is promulgated.
Though, we must prepare ourselves for amendments as
required by the regulation, if any.
We believe, to make the new business mechanism a successful
venture in Nepalese commodity market, the support and active
participation of all the stakeholders is indispensable. As the
market mechanism and the trading platform (software) for the
sought market space is entirely distinguished from the existing
model, we expect the model to serve the trading needs of the
market place.
In the proposed market mechanism, the focus we have put
on is to deliver state-of-the-art, cutting-edge trading console
with customizable features. Furthermore, the trading space
shall have more professionalized software/platform for
better trading experience in line with the proposed regulatory
parameters. The platform is also equipped with order tracking,
client profiling and tracking, broker profiling and other tons of thereby enhancing its importance by being a
features for complete transparency and wellness of the market
space.
Finally, as we have been constantly overcoming the challenges
and hurdles faced during the inception, development and
continuance of our services, we would like to assure to all the
stakeholders that we shall be constantly working to improvise
and streamline the commodity market in the days ahead,
eventually taking the Nepalese commodity market to greener
pastures.
- Jitesh Surendran
CEO
MEX Nepal
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Yellow Metal:
Treading a Thin Red Line!
Gold has been
termed as a
safe haven investment
since time immemorial.
But the current crop
of investors has
questioned the symbolic
nature of gold given
the rollercoaster of a
ride that the prices had
undergone in the weeks
gone by. In the preceding
days, the value of gold
has been fluctuating
which has left the
investors with moments
of despair and joy in
a short run. Gold has
always been considered
as a form of alternative
investments given the
sustainability of the
metal. Investors seem
to be park their belief
and trust in the yellow
metal since it gives the
corresponding investors
appreciable profit in the long run. Hence, the
unpredictable nature of the markets in the
recent times has gained predictable.
In Hindu culture, the possession of
gold has been regarded as a status symbol
necessity for marriage ceremonies and many
other rituals as well. Gold is also considered
as the most liquid asset after cash, thereby
being easily sellable in the markets. Thus, the fastest growing economies in the world in the
demand of gold is always increasing although
the prices have been fluctuating immensely.
It’s no hidden secret that the US economy
is the largest economy, influencing the
global affairs with an iron fist. Therefore,
any changes in the US policy will have a
direct or indirect influence on the rest of the hoping for a global recovery phase. The
world. The decrement in the prices of gold
lately, is also to some extent associated with
the changing dynamics of the US economy.
The supposed rumor of the US Central Bank,
Federal Reserve, in tightening the monetary
policy by stopping its Quantitative Easing
(QE) has affected the prices of gold in the
international markets. QE is the government
monetary policy that injects money via buying
financial assets from commercial banks
to increase money supply in the economy.
With the development of US economy, the
Federal Reserve Bank decided to tighten
the monetary policy which would ultimately
reduce the money supply in the economy and
this will reduce the flow of money. Thus,
this will result in less money in the hands of
general public. Due to the supposed inverse
relationship between USD and gold, the
prices of the safe haven moved southwards
given the strengthening of the USD. But in
the latest FOMC statement, published by
the same authoritative body, the Central
Volume: 5 • Issue: 1 • Year: 2013 A.D
Member’s Perspective
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Bank maintained that it will hold onto the
accommodative monetary policy, provided
impetus to the prices of gold thereby moving
it northwards again. Investors did have a field employment opportunities.
day given the dramatic fall and rise of the
precious metals in a matter of few weeks.
Besides, another reason exemplifying
the reduction of the prices of gold was the
announcement of the Cypriot government to
sell most of its gold reserves to help finance
part of its bailout. Furthermore, other weak
Euro zone economies including Italy and
Spain are also in the footsteps of Cyprus,
leading to the further reduction in the prices
of gold.
Nepal is sandwiched between two of the
form of China and India. But when the former
announced that its GDP took a beating in the
last quarter declining to a figure of 7.7%
versus an 8.0% expected figure, gold prices
declined as a result sending shockwaves
across the financial systems which was
decline in the Chinese GDP was attributed
primarily to lower consumption in the wake of
a government crackdown on luxury spending,
as well as property investments.
The importance of the Commodity
Markets in the context of fluctuating prices
of commodity becomes immense as the
participants, especially speculators, will
gain profit via the movement of prices of the
corresponding commodity. In a nation like
ours, where the investments are somewhat
parked in the yellow metal, the importance
of such mechanism becomes paramount in
hedging the investments of the common man.
With the help of the Commodity Market,
people can get new investment opportunities,
www.twitter.com/mexnepal
enjoy leverage, mitigate risk and can earn
profits with little investment. The sector also
provides new business as well as numerous
Gold has been treading along higher
grounds since the bearish days of April 2013.
As I conclude this article, the prices are
trading at an appreciable figure of $1477 per
troy ounce. So what is next for the favored
metal will be awaited with bated breath by
the investors and the common man alike.
Some renowned institutions had quoted at the
beginning of the year that the prices will touch
$2000 per troy ounce by the end of 2013. But
the same bodies had to eat humble pie, when
the prices dropped to unthinkable figures
in the preceding days and withdrew their
forecasts as quick as possible to avoid further
embarrassment. But yours truly believes that
the global economies is not out of the woods
yet i.e. the recession years-given the figures
coming out of the major economies, and also
believe that the metal will slowly but surely
reach the improbable figure of $ 1800 per
troy ounce by the end of the year. Some note
of caution though- I will be highly apologetic
if the prices does not reach the said figure.
But if it does, you know where you heard it
first i.e. after the recent crash!
Shubhechchha
Mulepati
Assistant Manager
Client Service Department
Mercantile Exchange Nepal
Limited
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