Page 2 - MEX Express - Vol 6 Issue 2
P. 2                                                      FACTS AND FIGURES                                                                           Volume: 6 • Issue: 2 • Year: 2014 A.D

    Market Capitalization - Futures Contracts                         Know Your Commodities
             From April 2014 - June2014 (in%)
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.
                                                                                                                         • Coins & medals fabrication                              11:00-16:00
                                                                                                                     eased but remained elevated by historical                     (Monday-Thursday)
                                                                                                                     standards.                                                    11:00-13:00
                                                                                                                         • 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
                  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

MEX EXPRESS                                                                                                       Page 02
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