Page 2 - MEX Express - Vol 7 Issue 2
P. 2                                                      FACTS AND FIGURES                                                                                                                          Volume: 7 • Issue: 2 • Year: 2015 A.D
      Market Capitalization - Futures Contracts                       Know Your Commodities
               From April 2015 - June 2015 (in%)

Market Capitalization of all the future contracts listed in the MEX   Introduction                                                                            mined in South Africa, according to                    nickel, iron, and cadmium.
terminal. Gold has the maximum capitalizaiton followed by Micro Gold                                                                                          Lawrence Livermore National
& Small Gold.                                                             Gold is a shiny, malleable, soft,                                                   Laboratory.                                        • Very few chemicals can attack gold,
                                                                      dense metal which is a chemical                                                                                                                so that’s why it keeps it shine even
      Market Capitalization - Spot Contracts                          element with symbol Au. Gold is a                                                   • Because gold is soft, it is typically                    when buried for 1000’s of years.
             From April 2015 - June 2015 (in%)                        remarkable, rare metal, with an                                                         mixed with other metals, or alloys,
                                                                      unparalleled combination of chemical                                                    to give it strength. Measured on the               • The melting point of gold is 2,063
Market Capitalization of all the spot contracts listed in the MEX     and physical properties. For thousands                                                  karat scale, pure gold is 24 karats.                   degrees Fahrenheit.
terminal. Nano Gold continues to have the maximum capitalization      of years, it has been used as an
followed by Nano Silver and Mini Gold.                                ornament of kings, a currency and                                                   • In 2012, the gold mine production                    • Scientists believe that gold can be
                                                                      standard for global currencies, and                                                     increased by 12 MT to 2848 MT                          found on Mars, Mercury, and Venus.
                                                                      more recently, in a wide range of                                                       and the combined demand for bars
                                                                      electronic devices and medical                                                          & coins dropped from 1515 MT to                    Gold @ MEX
                                                                      applications. Gold has historically been                                                1256 MT.
                                                                      an excellent hedge against inflation,                                                                                                      • Gold has been trading initially in
                                                                      because its price tends to rise when the                                            • Gold demand of 3,756.1 tonnes in                         the futures platform and later on the
                                                                      cost of living increases. People see                                                    2013 was worth US$170.4bn.                             spot contracts in the MEX platform.
                                                                      gold as a way to pass on and preserve                                                   Consumers generated exceptional
                                                                      their wealth from one generation to the                                                 levels of demand, with jewellery at                • Gold is the Precious Metal available
                                                                      next. It can be acquired and stored in                                                  its highest since the onset of the                     for trading in the MEX terminal at
                                                                      the form of Jewellery, Bars, Coins and                                                  financial crisis in 2008 and                           present with initial margin of Rs.
                                                                      Gold Deposits. The purity of a gold bar                                                 investment in small bars and coins                     80,000 for 1000 Kilogram. It has 4
                                                                      can also be expressed as a decimal                                                      hitting a record high.                                 different Futures and Spot contracts.
                                                                      figure ranging from 0 to 1, known as
                                                                      the millesimal fineness, such as 0.995                                              • Central bank buying and selling can
                                                                      and 0.999. The price of gold is                                                         have a significant influence on gold
                                                                      determined on the open market, but a                                                    prices. Central banks made healthy
                                                                      procedure known as the Gold Fixing in                                                   purchases of 368.6 tonnes, the
                                                                      London, originating in 1919, provides                                                   fourth consecutive year of positive
                                                                      a twice-daily benchmark figure to the                                                   demand. The net result was a 15%
                                                                      industry. South Africa, the United                                                      decline in overall gold demand
                                                                      States and Australia are the three                                                      from 2012.
                                                                      largest gold producing countries while
                                                                      India is the world’s largest gold                                                   Some Interesting Facts
                                                                      consumer, followed by China.
                                                                                                                                                          • The word “gold” comes from the
                                                                      Fundamental Facts                                                                       Old English word “geolu,” meaning
                                                                      • Seventy-eight percent of the
                                                                          world’s yearly supply of gold is                                                • Gold is extremely ductile. A single
                                                                          used in jewelry, according to the                                                   ounce of gold (about 28 grams) can
                                                                          AMNH. The rest goes to electronics                                                  be stretched into a gold thread 5
                                                                          and dental and medical uses.                                                        miles (8 kilometers) long.

                                                                      • A total of eighty-eight thousand                                                  • 24 karat gold is pure elemental
                                                                          tons of gold have been extracted                                                    gold. 18 karat gold is 75% pure
                                                                          from the earth ever since. This                                                     gold. 14 karat gold is 58.5% pure
                                                                          means all the gold that has been dug                                                gold, and 10 karat gold is 41.7%
                                                                          up so far in history would, if                                                      pure gold. The remaining portion of
                                                                          melted, make a cube measuring                                                       the metal usually is silver, but may
                                                                          approximately 25*25*25 meter.                                                       consist of other metals or a
                                                                                                                                                              combination of metals, such as
                                                                      • Two-thirds of the world’s gold is                                                     platinum, copper, palladium, zinc,

             Major Market Movers for Gold & Palladium (1st April-30th June 2015)

                                                                      Gold                                                                                                                                       Palladium

                                             Prices  35000                                                                                                                                      Prices  25000
                                                     30000                                                                                                                                              20000
                                                     25000    4/1/2015                                                                                                                                  15000    4/1/2015
                                                     20000             4/6/2015                                                                                                                         10000             4/13/2015
                                                     15000                      4/20/2015                                                                                                                                          4/29/2015
                                                     10000                                4/24/2015                                                                                                      5000
                                                                                                   5/4/2015                                                                                                   0                              5/5/2015
                                                      5000                                                  5/25/2015                                                                                                                                 5/28/2015
                                                           0                                                          6/5/2015
                                                                                                                               6/15/2015                                                                                                                       6/1/2015
Note:                                                                                                                                   6/30/2015  Note:                                                                                                                 6/9/2015

Date   News                                                                                                                                        Date   News

4/1/2015 Opening price as of 1st April 2015                                                                                                        4/1/2015 Opening price as of 1st April 2015

4/6/2015 Disappointing U.S. employment data                                                                                                        4/13/2015 The demand for precious metal increased

4/20/2015 Greece won’t be forced out of the eurozone.                                                                                              4/29/2015 China’s imports of palladium fell

4/24/2015 Strength in global equities diverted interest from the precious metal                                                                    5/5/2015 Strong demand from chinese industries

5/4/2015 Weak Chinese factory data and earlier dollar weakness                                                                                     5/28/2015 Slow chinese demand

5/25/2015 Investor optimism in federal reserve rate hike                                                                                           6/1/2015 U.S. jobless claims at lowest since April 2000

6/5/2015 The U.S. economy added 280,000 jobs in May                                                                                                6/9/2015 Lonmin aims to cut 3500 South African jobs

6/15/2015 Demand in the Asian market                                                                                                               6/15/2015 Supply from South African mines climbs

6/30/2015 Closing price as of 31st March 2015                                                                                                      6/28/2015 Closing price as of 28th June 2015

MEX EXPRESS                                                                                                                                                     Page 02
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