Long term Investors Association Nepal - LTIAN

💎 Silver: The Undervalued Metal with Strategic Potential

While gold continues to dominate investor attention, silver is quietly emerging as a high-potential asset — blending industrial necessity with monetary value.

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⚙️ 1. Industrial Demand at Record Highs
Silver is indispensable in modern technology and clean-energy systems:
🔸 Solar energy (photovoltaic cells)
🔸 Electric vehicles (conductivity & battery components)
🔸 Semiconductors and AI hardware

➡️ As global clean-energy projects accelerate, demand for silver is set to outpace supply in the coming decade.

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🪓 2. Constrained Supply Outlook
Global mine production has been declining while industrial consumption continues to rise.
This imbalance points toward a long-term supply deficit, a classic setup for potential price appreciation.

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🏦 3. Inflation & Currency Hedge
Silver has long preserved purchasing power during inflationary cycles.
Its affordability makes it an ideal entry-level hard asset for retail investors seeking to diversify away from fiat risk.

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⚖️ 4. The Silver–Gold Ratio Opportunity
Historically, 1 ounce of gold ≈ 15 ounces of silver.
Today, the ratio exceeds 80:1, implying silver remains significantly undervalued relative to gold.

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💬 Investor Insight:
With expanding industrial use, tightening supply, and a historically wide gold–silver ratio, silver represents a strategic opportunity for long-term investors.

📈 Could silver outperform gold in the next decade?
Share your perspective below 👇

5 Important Money Rules

📈 Why Is Gold Price Increasing? Here’s What You Need to Know 💰

Gold prices have surged recently, and you’re not alone if you’ve been wondering why. Here are the key reasons backed by real-world evidence:

🌍 1. Global Economic Uncertainty
Geopolitical tensions (like the wars in Ukraine and the Middle East) and concerns about global recession have led investors to seek “safe haven” assets like gold. Gold is traditionally used to hedge against risk when markets get shaky.

📉 2. Falling Interest Rates Expectations
Markets are anticipating interest rate cuts by major central banks (like the U.S. Federal Reserve) due to slowing inflation. Lower interest rates reduce the opportunity cost of holding gold (which doesn’t earn interest), making it more attractive.

📊 Evidence: In May 2025, the U.S. Fed signaled it may cut rates by late 2025. As a result, gold hit record highs above USD $2,400 per ounce.

💵 3. Weakening US Dollar
Gold is priced in USD, so when the dollar weakens, gold becomes cheaper for foreign buyers, pushing demand (and price) higher.

📈 Fact: The U.S. Dollar Index (DXY) dropped below 103 recently — making gold more appealing to international investors.

🇨🇳 4. Central Bank Buying – Especially by China
Countries are increasing their gold reserves. China, for instance, has been adding gold to diversify away from the U.S. dollar.

🔒 Insight: The People’s Bank of China has been buying gold for 18 consecutive months — a clear sign of growing demand.

🔁 5. Supply Constraints
Mining new gold is expensive and time-consuming. With demand rising faster than supply, prices naturally rise.

🟡 In Short:
Gold is climbing because of a mix of investor fear, central bank buying, a weakening dollar, and speculation that interest rates will drop soon. It’s a perfect storm boosting gold’s glow in 2025!

📢 Are you investing in gold? Let us know your thoughts in the comments.

🌍 What is BRICS? Understanding the Rising Global Power Bloc

Ever heard of BRICS and wondered what it’s all about? 🤔 Let’s break it down for you!

BRICS stands for Brazil, Russia, India, China, and South Africa — five powerful and fast-growing nations that are reshaping the global order. 🌐

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💡 The Idea Behind BRICS

This isn’t just a group of countries hanging out. BRICS was formed to challenge the dominance of Western powers like the U.S. and Europe in global institutions like the World Bank and IMF.

Together, BRICS nations:
✅ Represent over 42% of the world’s population
✅ Contribute to 26% of global GDP
✅ Control vast natural resources, tech power, and market influence

They believe it’s time for a more balanced world, where emerging economies have a bigger say!

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🏗 What BRICS Is Doing

BRICS isn’t just talk — it’s building its own world-changing tools:

🔹 New Development Bank (NDB) – A BRICS version of the World Bank, funding big infrastructure and green projects.

🔹 Contingent Reserve Arrangement (CRA) – A $100 billion pool to help members during financial crises.

🔹 Alternative to SWIFT – BRICS is working on its own global payment system to reduce reliance on the U.S. dollar 💵.

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🚀 Why It Matters

BRICS is:
• Challenging the economic status quo
• Creating new opportunities for developing countries
• Promoting a multipolar world where no single power dominates

As these nations rise, BRICS could shape everything from global trade and finance to technology and climate policy.

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🌐 BRICS and the Future

With more countries expressing interest in joining, BRICS is expanding its influence year by year. It’s not just an economic club — it’s a vision for a fairer, more inclusive world.

📣 Stay informed. The future of global power isn’t just in Washington or Brussels anymore — it might be in São Paulo, Moscow, Delhi, Beijing, or Cape Town.

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✅ Like this post if you learned something new!
💬 Comment your thoughts — should more countries join BRICS?
🔁 Share this to help others understand this rising power bloc!

Compounding in stocks, especially in the context of Nepal’s stock market (NEPSE), is a powerful strategy for long-term wealth growth. By reinvesting your earnings (dividends or capital gains), you allow your investment to grow exponentially over time. The compound effect becomes more significant as the time horizon increases, particularly in a market with consistent growth trends like NEPSE.

For example, investing in stocks with high compounded annual growth rates (CAGR) in Nepal, such as those in sectors like microfinance, hydropower, or commercial banking, has historically yielded impressive returns. Certain stocks have grown as much as 68.3% annually, leading to substantial growth in a relatively short period  . Additionally, the benefits of compounding are enhanced when reinvested over a period of 10 to 20 years, potentially leading to massive increases in wealth .

When using compounding, the strategy works best when you hold stocks in stable sectors and choose companies with high growth potential. Monitoring the NEPSE trends and focusing on companies with consistent, long-term growth (such as high CAGR or those dominating key sectors) is essential for maximizing the benefits of compounding  .

If you’re considering investing for the long term, a disciplined approach with regular investments and reinvestment of dividends can turn modest sums into a considerable portfolio over the years. Would you like to explore specific stocks or sectors that might offer good compounding potential on the Nepal Stock Exchange?

Investing in stocks for the long term has proven to be one of the most effective strategies for building wealth. Below is a detailed explanation of why long-term stock investing is beneficial:

1. Compounding Returns
• One of the primary reasons long-term stock investing is so powerful is the ability to compound returns. Compounding refers to earning returns not just on your initial investment, but also on the returns that investment generates over time.
• For example, if you invest in a stock that grows by 10% per year, not only does your principal grow by 10%, but the earnings from your first year’s return also earn 10% in subsequent years. Over time, this snowball effect can lead to substantial growth.

2. Reduced Market Volatility
• The stock market can be volatile in the short term, with prices fluctuating due to various factors such as economic reports, company earnings, geopolitical events, or even market sentiment.
• However, over a long-term horizon (typically 5-10 years or more), the impact of these short-term fluctuations tends to diminish. Historically, the stock market has shown an upward trend despite periods of volatility. Investors who hold their stocks long term are more likely to weather short-term downturns and benefit from the overall upward movement in the market.

3. Growth Potential
• Stocks represent ownership in companies, and as companies grow, their value typically increases. Over the long term, companies that innovate, expand their markets, and increase their profits can see their stock prices rise substantially.
• By investing in stocks, particularly those of growing companies or industries (like technology, renewable energy, or healthcare), investors position themselves to benefit from the long-term growth of those companies.

4. Capital Gains and Dividends
• Capital Gains: When the stock price rises over time, investors can sell their shares for a profit. Long-term investors typically hold on to stocks that they believe will appreciate over time, benefiting from this capital gain.
• Dividends: Many companies pay dividends, which are a portion of the company’s profits distributed to shareholders. Reinvesting dividends into more stocks can further compound the investment, leading to even greater returns. Long-term investors can accumulate these dividends and reinvest them, further boosting their portfolio.

5. Tax Efficiency
• In many jurisdictions, there are tax incentives for long-term investments. For instance, in the United States, long-term capital gains (profits from selling investments held for more than one year) are taxed at a lower rate than short-term capital gains, which are taxed at ordinary income rates.
• By holding investments for the long term, investors can take advantage of these lower tax rates, which can significantly increase net returns over time.

6. Diversification of Risk
• Holding a diversified portfolio of stocks across various sectors (e.g., technology, healthcare, energy, consumer goods) reduces the risk of losing money on individual stocks. Over time, some stocks may underperform, but others may outperform, balancing out the overall risk.
• Long-term investors often benefit from this diversification because it allows them to be exposed to the overall growth of the economy and industries, rather than the performance of a single company.

7. The Power of Time
• “Time in the market is more important than timing the market.” This adage speaks to the fact that trying to predict short-term market movements is nearly impossible. Even the most experienced investors can struggle to accurately time when to buy and sell stocks.
• Over a long period, investors are less likely to miss out on the market’s overall growth. Those who stay invested for decades are far more likely to see positive returns than those who try to time the market, buying in at peaks and selling at troughs.

8. Behavioral Bias and Long-Term Investing
• Short-term market movements can provoke emotional reactions like fear during downturns and greed during rallies, leading to poor decision-making such as selling when prices fall or buying during price bubbles.
• Long-term investing helps investors avoid these emotional pitfalls, as they are focused on the underlying value and long-term growth potential of their investments, rather than reacting to short-term price movements.

9. Lower Transaction Costs
• Frequent buying and selling of stocks incur transaction costs, such as brokerage fees, taxes, and spreads between buying and selling prices. By holding stocks long-term, investors avoid these costs, which can eat into overall returns.
• With long-term investing, you typically only need to rebalance or make adjustments to your portfolio once in a while, which reduces the frequency of transactions and lowers associated costs.

10. Building Wealth and Financial Independence
• Long-term investing provides the opportunity to gradually build wealth. Starting early with small amounts of money can lead to substantial sums over several decades, particularly if reinvestment of dividends and compounding is taken into account.
• By consistently investing in stocks over time, investors can create a growing nest egg, which could be used for retirement, financial independence, or future generations.

Conclusion

Investing in stocks for the long term offers numerous benefits, including compounding returns, reduced volatility, growth potential, tax advantages, and lower transaction costs. By focusing on a long-term investment strategy, investors are more likely to avoid short-term market noise, ride out downturns, and ultimately benefit from the overall growth of the economy and companies they invest in.

While investing in stocks always involves risk, history has shown that long-term stock investing tends to yield positive returns for those who remain disciplined and patient. Whether you’re investing for retirement, wealth building, or other financial goals, a long-term investment strategy is one of the most effective ways to achieve success in the stock market.

Muktinath Capital Limited is closing its 85 million units of Rs 10 face value each mutual fund scheme "Muktinath Mutual Fund 1" to the general public from today (25th Mangsir, 2081). || ShareSansar || Muktinath Capital Limited is closing its 85 million units of Rs 10 face value each mutual fund scheme "Muktinath Mutual Fund 1" to the general public from today (25th Mangsir, 2081).

First Microfinance Laghubitta Bittiya Sanstha Limited has published its annual financial highlights of the fiscal year 2080/81. || ShareSansar || First Microfinance Laghubitta Bittiya Sanstha Limited has published its annual financial highlights of the fiscal year 2080/81.

NEPSE le aja samma ko sabai record todera 2906.91 ko naya record banayeko xa vane market ma aja 17.27 arba ko karobar vayeko xa jun aja samma kei sab vanda badi Turnover ho.