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PMEX (formerly) NCEL Mini Gold > frequently asked questions
a new way to invest in gold

Can my investment sink like stock investment?
No. Gold is a precious physical commodity, a tangible store of value and endures forever unlike most other investments. Unlike stocks, which can lose all their value, gold will always retain its minimum intrinsic value.

Can I sell gold bar at PMEX (formerly NCEL) purchased from the open market?
No. Gold traded at PMEX (formerly NCEL) is of the purest international standards and in order to ensure the highest quality only gold bars complying with PMEX (formerly NCEL) standards are traded on the Exchange. Gold bars in the open market do not comply with PMEX (formerly NCEL) high standards.

Can I verify my account balances directly from PMEX (formerly NCEL)?
Yes, you can check your account directly through PMEX (formerly NCEL) web portal.

What is the account opening process/ requirement?
Contacting an NCEL registered broker, reading and signing account opening form and giving the broker minimum funds for trading. PMEX (formerly NCEL) helpdesk/website can guide you about brokers active in your area.

What are the benefits of investing in the Mini gold contract?
It is of a small size (10gms gold) and allows investors to build their holding according to their own financial situation. It makes it possible to buy and sell gold at fair price. Mini gold bars are legally imported, are of the highest international specifications, certified by Swiss government, with unique serial numbers and certificates, enclosed in tamper-proof packing and acceptable all over the world. The contract also offers the facility to store the bars at PMEX (formerly NCEL) fully insured vault and thus reducing expenses and hassle for investors.

What do you mean by a contract?
A contract is an agreement to sell or purchase gold under certain specifications. It is an understanding of entering into a standardized trade of a commodity. In the context of Mini Gold, it signifies the guarantee and assurance of the Exchange as to the quality and delivery of gold as well as the obligation of buyers to make payments for purchase once they have agreed on a price.

Why trade on the exchange?
Because of higher credibility of a national-level institution, regulated by the Government. Exchange trading makes it possible for many buyers and sellers to trade around one fair price and reduces middle-man charges. The quality of gold is assured by the Exchange and it also provides for safe and secure custody. Investors can trade with the surety that they will get pure gold of highest quality and sellers will receive their cash immediately. It offers a level-playing field between buyers and sellers; something that is absent from bilateral trading with jewelers.

How is the physical delivery handled? Will the gold be delivered to us or do we have to go somewhere to take delivery?
You can hold it in the vault or take physical possession. The gold will either be delivered by the broker or will require you to collect from the broker’s branch office.

Who are we taking an exposure on?
The legal, operational and risk management structure of PMEX (formerly NCEL) is of the highest international standards and ensures that investors only take exposure on their own position, i.e. the rise and fall of gold price. The superior and unique risk management of NCEL ensures that individual investors are protected in the case of default by other market participants. No other exchange in Pakistan offers such surety.

Who sets the price of gold?
As buyers and sellers, all market participants collectively set the price of gold at PMEX (formerly NCEL). Being an international commodity, the price at PMEX (formerly NCEL) in rupees will follow the international dollar price of gold.

What is PMEX (formerly NCEL) Mini Gold?
A 10gm 24 karat, 99.99% pure gold bar manufactured by PAMP s.a. (the biggest refinery in the world), carrying a unique serial number, enclosed in a tamper-proof packaging, certified by independent Swiss government assayer.

Where can I open my account?
With any NCEL registered broker. The list is available on www.pmex.com.pk or call 021-111 623 623 for information.

Can you arrange a session for us at our premises?
Yes, please send a request through your PMEX (formerly NCEL) broker.

What is the margin requirement?
Minimum 25%. As this is like a spot market, delivery-based product, brokers can ask for higher margins (up to 100%) in order to ensure that investors get delivery as early as next day.

What is the unit of trading, grade & quality?
10 grams 24 karat, 99.99% pure gold complying with international gold standards.

Is there any charges for PMEX (formerly NCEL) vault?
Currently 0.5%.

What is the security of my gold at PMEX (formerly NCEL) vault?
 Fully insured by the country’s top insurance companies & it is also audited by a third party.

Can I take physical delivery?
 Yes.

Where can I take physical delivery?
At your broker’s branch office or the broker may agree to deliver it to your premises.

Who will bear the delivery charges?
NCEL, for at least the first 3 months of the launch of this product

Which is the recommended broker to whom I open my account?
Currently, the most active are Investcap, IGI, Abbassi and Company, Unicorn, Falcon, Growth, Salman Capital

Who are the directors of PMEX (formerly NCEL)?
Representatives of the 5 shareholders: KSE, LSE, ISE, PakKuwait Investment Company, Zarai Taraqiati Bank plus a majority of independent directors from various sectors of industry and finance.

What is the current rate of gold?
Gold price varies throughout the day. You can obtain the current price information from PMEX (formerly NCEL) website, your PMEX (formerly NCEL) broker, media or internet.

Can I trade directly from PMEX (formerly NCEL)?
After opening account with an NCEL broker you can request a direct trading terminal which will allow you to trade directly on the Exchange.

Should I open my account like trading in stock?
Account opening is very simple and offers additional advantages of segregating your funds from the broker’s and access to your account details held with the Exchange. These facilities are not available for stocks.

Whether trading is online or not?
PMEX (formerly NCEL) is a fully electronic exchange which allows for direct online trading along with the traditional method of sending orders through brokers.

 

 

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