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Mercantile Exchange Nepal Limited                                  MEX EXPRESS
         Invest - Trade - Earn                                                                A Smart Solution for Online Trading
An ISO 9001:2008 Certified Exchange

KYC: Silver                                                        MEX News Portal                                                Volume: 5 • Issue: 1 • Year: 2013 A.D

             PAGE 2                                                                                    PAGE 3       Member’s Perspective

                                                                                                                                                         PAGE 4

From the CEO’s Desk                                                Yellow Metal:

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

MEX EXPRESS                                                                                              Page 01
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