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Tag: gold

  • Gold bullion producer SJC reports 11 pct rise in profits

    Gold bullion producer SJC reports 11 pct rise in profits

    State-owned Saigon Jewelry Company reported a pre-tax profit of VND75 billion ($3.2 million) for 2020, up 11 percent from the previous year.

    The company’s revenue rose 26 percent to VND23.49 trillion in 2020, but its financial expenses tripled because of provisions made for the loss of financial investments.

    Established in 1988, SJC is a wholly state-owned enterprise belonging to Ho Chi Minh City. Revenues were up 26 percent at VND23.49 trillion, well below its target of VND25.7 trillion.

    It has been the sole producer of gold bullion in the country since 2012, and has around 90 percent of the bullion market.

  • Malabar to open 56 stores most sit in Asia

    Malabar to open 56 stores most sit in Asia

    In India, the expansion will span Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Maharashtra, Delhi, West Bengal, Uttar Pradesh, Odisha, and Kerala, and globally, new outlets will open in Singapore, Malaysia, Oman, Qatar, Bahrain, and the UAE.

    In India 12 new stores are slated to open in Q1 of the fiscal in Chennai, Lucknow, Hyderabad, Mumbai, Pune, and Bengaluru, and in small towns like Eluru, Mancherial, Solapur, and Ahmednagar. Globally, new shops will open in Little India in Singapore, Kuala Lumpur and Penang in Malaysia, Ruwi, Baushar and Al Khoudh in Oman, Jeryan Jenaihat and Rawdat in Qatar, Bab al Bahrain in Bahrain, and in the UAE in Al Zahia and Muweilah in Sharjah, and Silicon Oasis and Dubai Gold Souk Dubai.

    Malabar Group Chairman, MP Ahammed, said: “In over 25 years, we have transformed from a small retail jewelry business to a global player across the verticals of gold and diamond jewelry retail, manufacturing, and multi-retail business. Transparency and customer trust have been our growth pillars and the new expansion will take us to the next level.”

    He said the new stores will offer an unparalleled customer experience in line with the Malabar Promise of incomparable quality and service assurance. The group’s goal is to be the number one jewelry retail brand in the world in terms of showroom numbers and turnover.

    Abdul Salam KP, Group Executive Director of Malabar Group, said: “In line with our social commitment, the expansion will create 1,750 new jobs. We follow industry best practices, ethical sourcing, and professional fund management.”

    “The expansion will strengthen the group’s retail footprints in territories where it has a strong presence,” said Shamlal Ahamed, Managing Director, International Operations of Malabar Gold and Diamonds.

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  • Leading jeweler invests in pawn shop chain

    Leading jeweler invests in pawn shop chain

    PNJ has decided to invest in pawnshop chain Golden Friend, with the stipulation it cannot exceed 30 percent of the latter’s charter capital.

    The Board of Directors of the Phu Nhuan Jewelry Joint Stock Company (PNJ) has entrusted PNJ CEO Le Tri Thong with deciding the value and timing of the investment.

    The Golden Friend Joint Stock Company was founded in 2017 with a charter capital of VND1 billion, which was raised after six months to VND10 billion.

    The company introduced itself as a strategic partner of PNJ. Golden Friend has 21 pawnshops, all of which are located inside PJN stores. It accepts expensive accessories made of gold, silver and diamond, and also luxury watches like Rolex, Hublot and Patek Philippe.

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  • Soaring gold price, China recovery boost Chow Tai Fook results

    Soaring gold price, China recovery boost Chow Tai Fook results

    Chow Tai Fook Jewellery Group Limited, a Hong Kong Main Board listed company with over 90 years of heritage, today announces its interim results for the six months ended 30 September 2020.

    The Group’s revenue declined by 16.5% to HK$24,673 million in 1HFY2021. Gross profit remained stable at HK$8,143 million. The adjusted gross profit margin was lifted to 35.1% in 1HFY2021, thanks to the improvement in the like-for-like gross profit margin of gold products resulted from the surge of international gold price. Core operating profit benefitted from the adjusted gross profit margin improvement with core operating profit margin widened to 16.5% in 1HFY2021. The Group’s profit before taxation increased by 49.3% to HK$3,284 million.

    Profit attributable to shareholders of the Company increased by 45.6% to HK$2,232 million mainly benefitted from our like-for-like gross profit margin improvement, one-off government subsidies and rent concession, plus foreign exchange gain, netting off impairment on assets. Basic earnings per share were reported at HK$0.22. The Board has declared an interim dividend of HK$0.16 per share. The payout ratio approximates 71.7% in 1HFY2021.

    While business in Mainland China witnessed a steady recovery on the back of the easing COVID-19 situation in 2QFY2021, performance in Hong Kong, Macau and other markets remained lackluster. Thus, Same Store Sales (“SSS”) in Mainland China stayed flat in 1HFY2021 supported by a positive Same Store Sales Growth (“SSSG”) in 2QFY2021 as business activities and consumer sentiment revived. In Hong Kong and Macau, SSS was down by 65.7% during the period as customer traffic remained stagnant.

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  • Gold continues to scale new peaks

    Gold continues to scale new peaks

    Gold prices in Vietnam climbed to a new peak, as global rates hit an all-time high. State-owned Saigon Jewelry Company sold its popular SJC gold at VND60.7 million ($2,628) per tael of 37.5 grams (1.2 ounces) on Thursday morning, up 2.88 percent from Wednesday.

    Major jewelry company DOJI sold at VND60.3 million ($2,611). The State Bank of Vietnam said it has the resources to stabilize the gold market and would closely monitor the price movements.

    Global rates edged down to $2,041 on Thursday after reaching an all-time high of $2,055 on Wednesday. Analysts said the rapid rise in Covid-19 cases has dented hopes of a swift economic rebound, driving inflows into safe-haven assets such as gold, which has gained more than 34 percent this year.

    Vietnam’s gold bar and coin demand in the first quarter fell 8 percent year-on-year to 12.3 tonnes, according to the World Gold Council.

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  • Gold prices hit new peak

    Gold prices hit new peak

    Vietnam’s gold prices continued their ascent Thursday to reach a new peak as global rates rose, driven by the latest escalation in U.S.-China tensions.

    State-owned Saigon Jewelry Company sold its popular SJC gold at VND54.2 million ($2,341) per tael of 37.5 grams (1.2 ounces), up 1.3 percent from Wednesday. The country’s largest jewelry company, DOJI, sold at VND53.7 million ($2,319), up 1.6 percent.

    Global rates went up by 0.3 percent to $1,873.97 on Thursday, the highest in nearly nine years, after the U.S. gave China 72 hours to close its consulate in Houston amid accusations of spying. China has vowed to retaliate.

    The fear of missing out “is driving a flood of speculative money into gold, piling on top of January-June’s heavy physical demand,” Bloomberg quoted Adrian Ash, director of research at BullionVault, as saying.

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  • Vietnam gold prices climb to new peak

    Vietnam gold prices climb to new peak

    Gold prices have risen to new highs in Vietnam as they track recent rises in global prices triggered by the coronavirus pandemic. SJC gold on Tuesday rose to VND50.3 million ($2,170) per tael to surge past the previous record of VND49.5 million ($2,137) in 2011, when global prices soared to historic highs.

    Gold prices held steady near an eight-year high on Tuesday as investors weighed a spike in Covid-19 cases around the world against a survey showing a rebound in U.S. services industry activity and expectations of a revival in China’s economy.

    Spot gold was almost unchanged at $1,784.06 per ounce by 0453 GMT, just $4.90 shy of a near eight-year high hit last week.

    Phan Dung Khanh, head of the investment advisory at Maybank Kim Eng Vietnam, said falling deposit interest rates are increasing demand for gold.

    The four state-owned lenders, Vietcombank, BIDV, Vietinbank, and Agribank, recently lowered their rates on 12-month deposits from 6.5 to 6 percent. Private banks have cut them by 0.4-0.8 percentage points.

    Experts also pointed to the falling stock market, which has lost nearly 11 percent this year, for turning gold into a safe haven.

    Tran Thanh Hai, chairman of the Vietnam Gold Investment and Trading Corporation, forecast gold prices to remain volatile for the next three months and start falling at the end of October before the U.S. presidential elections.

    Other analysts expected prices to rise further due to the uncertainties caused by the pandemic and geopolitical tensions.

    Goldman Sachs last month forecast that gold price could reach $1,800 in three months and $2,000 in a year.

    “Gold investment demand tends to grow into the early stage of the economic recovery, driven by continued debasement concerns and lower real rates,” it said in a note.

    Vietnam’s gold bar and coin demand in the first quarter fell 8 percent year-on-year to 12.3 tonnes, according to the World Gold Council.

  • Gold climbs to four-month high

    Gold climbs to four-month high

    Gold prices hit a four-month high of VND49.5 million ($2,137) per tael Wednesday as global prices surged due to a resurgence in coronavirus cases.

    Vietnam’s largest jewelry company DOJI sold its SJC gold at VND49.5 million per tael on Monday morning, up 0.4 percent from Monday. A tael equals 1.3 ounces.

    Saigon Jewelry Company Ltd also sold at VND49.5 million per tael, up 0.3 percent. SJC gold had reached an eight-year high of VND49.7 million ($2,146) in February.

    Global prices rose by 1.7 percent to $1,804 per ounce on Tuesday, the highest rate since November 2011. Analysts said the rising number of Covid-19 cases globally means investors are turning to gold as a safe haven.

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  • Gold Is Set to Jump

    Gold Is Set to Jump

    The monetary policy measures taken by the world’s main central banks in response to the outbreak of the coronavirus has paved the way for higher gold prices. Nevertheless, the precious metals’ business as a whole has come under severe stress recently.

    The price of an ounce of gold has shot past the $1,700 mark for the first time since 2012 – extending its ascent in sync with equity markets. Less than a month ago, gold stood at $1,450 per ounce. The increase is almost 20 percent for this short period of time.

    Now, the path is open for a valuation of $1,800 or more,» said Alberto Tocchio at Colombo Wealth in an interview. Gold reached a record of $1,920 per ounce in the fall of 2011.

    Gold is riding on a wave following the extremely expansive monetary policy of the U.S. Federal Reserve (Fed). With the liquidity that the Fed is pumping into markets, equities have risen and some investors will have decided to hedge against another crash by adding gold to their portfolio. Gold is a typical safe haven in times of crisis.

    The surge of the gold price will keep the precious metals business busy for some time, analysts said. Two of the Swiss gold refineries have resumed their production on Monday, starting at 30 to 40 percent of capacity.

    The refineries are concentrating on gold bars because that’s where demand is highest. The two companies have orders for dozens of tons of gold for delivery by the end of May, according to experts.

    The orders were placed by private gold trading firms, commercial banks, and central banks. The surge in demand for gold meant that these companies can’t produce any silver, platinum or palladium before June. This will cause further stress to the business, said Andreas Habluetzel, CEO of Degussa Goldhandel, a gold trader.

    Numerous mints around the globe have been closed for business – one of which being the Rand Refinery in South Africa. It makes the world-famous Krugerrand coins. «There’s some indication pointing to a longer-term closure because the Covid-19-crisis has yet to reach large areas of Africa and as the continent isn’t as well prepared for the problem as Europe,» Habluetzel said.

    A group of politicians and businessmen have joined hands to lead the fight against the virus in Africa – with ex-Credit Suisse boss Tidjane Thiam, former South African Finance Minister Trevor Manuel, and Donald Kaberuka, ex-president of the African Development Bank among them.

    The key indicator for the future development of the gold price will be inflation. Inflation is due to accelerate once the financial and monetary policy measures taken by governments and central banks take effect.

    That, in turn, is likely to give gold a boost, because the precious metal is known as a safe haven for investors that fear inflation. A price of as much as $3,500 for an ounce is theoretically on the table under these circumstances, according to Christian Kaemmerer, a technical analyst. He put his estimate, which he deemed conservative, on his online service platform TA4YOU on Tuesday.

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  • Luk Fook sales plummet by half in first two months of 2020

    Luk Fook sales plummet by half in first two months of 2020

    Hong Kong jeweler Luk Fook says its sales halved during the first two months of this year as the coronavirus outbreak caused an extensive lockdown of mainland Chinese cities and visitors to Hong Kong and Macau fell sharply.

    While most mainland stores have reopened this month, customer footfall of the shops operating in Mainland China, Hong Kong and Macau was “still sparse” said chairman and CEO Wai Sheung Wong in a profit warning. “It is expected to take some time for the business to resume normal.

    “Therefore … there will be an acute drop in revenue for the period from January to March. It is therefore highly likely that certain losses will be incurred in the fourth quarter. It may lead to a substantial decline in the group’s revenue and profit for the financial year ending March 31.”

    With Macau stores closed for most of February, sales in the combined Hong Kong and Macau market decreased by more than 50 percent.

    “Economic activities in Mainland China were almost halted due to the outbreak,” said Wong. “In the first two months of this year, industry, consumption and investment all hit record low with the double-digit decline, crashing the macro-economy severely.”

    Group-wide, same-store sales of gold products and gem-set jewelry products in Luk Fook’s own stores were down by 45 percent and 54.9 percent, respectively. In Hong Kong and Macau overall sales were down by 52.8 percent, with gold products down by 47.3 percent and gem-set jewelry products by 58 percent.

    On the mainland, where shops were closed in February, same-store sales fell by 37.1 percent. Gold sales were down by 38.6 percent and gem-set jewelry sales by 31.8 percent.

    Retail sales through licensed shops and self-operated shops of the group in Mainland China fell by half.

    During the pandemic, the company has not replaced staff leaving of their own accord and introduced leave without pay to reduce staffing costs. It has also negotiated rent reductions with landlords.

    Expansion plan on track

    Despite the huge impact of the coronavirus on sales, Luk Fook remains committed to its expansion plan which Wong said “has not been seriously affected”.

    “It is estimated that the net shop additions for the current financial year would only be a bit less than the target of 300 shops. In addition, the group’s unaudited revenue and profit for the period for the nine months ended December 31 were about 60 percent and 55 percent respectively ahead of those for the year ended March 31, last year.”

    He said fourth-quarter operational data will be released in mid April.

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  • Gold Tumbles as Investors Scramble to Raise Cash

    Gold Tumbles as Investors Scramble to Raise Cash

    Gold was not spared on Thursday’s market rout, with gold futures on Comex falling by $52, or 3.2 percent, to settle at $1,590.30/oz.

    A drop in the stock market typically raises the safe-haven appeal of gold, but it is now the asset of choice among investors who want to raise cash, and a selloff on Thursday knocked back the yellow metal’s sharp rally that began in December.

    Gold traders are now selling «what they can amid a panicked marketplace,» said Kitco.com analyst Jim Wyckoff on Thursday in a roundup note.

    People are liquidating gold to cover margin calls they have in the equity market, Albert Cheng, chief executive of the Singapore Bullion Market Association, said, explaining the precious metal’s sharp losses.

    Gold is an easily liquidate asset, which again shows its value as a safe haven asset in times like this, Cheng said, noting similar behavior in the 1997 and 2008 financial crises.

    Wall Street endured its worst session since 1987’s «Black Friday» on Thursday, following the World Health Organization’s declaration of the Covid-19 outbreak as a pandemic and U.S. President Donald Trump’s address on Wednesday night, which has seemed to cause further unease about the situation, even as he assured the United States is «more prepared» to fight the pandemic than any other nation.

    At the start of trading on Friday, Singapore’s STI index fell 5 percent, the most at the opening bell since October 2008. Other stock markets also took large hits: Hong Kong’s Hang Seng index fell 5.8 percent, and Shanghai’s Composite Index fell 3.3 percent.

    Australia’s S&P/ASX 200 benchmark fell 7.1 percent in its biggest decline since 2008, and is on track for its worst week on record, while New Zealand’s S&P/NZX 50 index tumbled a record 7.4 percent. Japan’s Nikkei 225 index fell 9.4 percent, and Korea’s Kospi fell 7.6 percent.

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  • Gold prices hit 7-year high

    Gold prices hit 7-year high

    Vietnam’s gold prices hit a seven-year high Friday as the coronavirus outbreak pushed investors to seek safer assets.

    The country’s second-largest jewelry company, DOJI, was selling gold at VND45.59 million ($1,964) per tael (1.2 ounces), up 1.3 percent from Thursday, the highest since January 2013.

    Phu Nhuan Jewelry, meanwhile, sold its gold at VND45.75 million ($1,971), up 1.7 percent.

    The domestic price surge followed a global rise in gold prices of 0.9 percent to $1,635 per ounce Friday, the highest in seven years.

    Gold has become a more attractive investment option as the ongoing novel coronavirus outbreak will have negative impacts on the global economy.

    The gold price rise has happened alongside a fall in stocks. On Friday, Vietnam’s benchmark VN-Index fell 3.5 percent from the beginning of the year to 933.09 points.

  • Chow Tai Fook closing more Hong Kong stores

    Chow Tai Fook closing more Hong Kong stores

    Chow Tai Fook Jewellery Group has revealed plans to shut about one in five of its Hong Kong stores, the majority of them in prime tourist areas.

    The closures will take effect when leases come up for renewal throughout this year, starting from April according to an emailed statement cited by Bloomberg.

    The move follows announcements by Prada and Louis Vuitton they will not renew their leases on stores in Russell Street and Times Square, respectively. Sasa International has previously said it would close up to 30 stores in Hong Kong.

    The network retrenchments follow rapidly declining retail sales in Hong Kong since June last year, especially in the luxury sector, due to ongoing demonstrations and protests in the streets which have spooked foreign visitors, and declining visitor numbers from tier-1 cities in Mainland China. Jewelers have been hit by volatile gold prices as well, sparked by geopolitical tensions and the Sino-US trade war.

    Chow Tai Fook has not specified exactly how many stores it will close, referring to “in the mid-teens” when asked.

    The stores are primarily located in areas popular with tourists, including Tsim Sha Tsui, Mongkok and Causeway Bay.

    Chow Tai Fook believes a trimmer store network will reduce overheads and improve margins after it experienced three consecutive quarters of declining same-store sales. In the three months to December 31, same-store sales fell 35 percent in value in Hong Kong and Macau and by 47 percent in volume.

    However on the mainland, sales rose 17 percent during the quarter, driven by the rapid expansion of the brand’s store network there; it added a net 279 stores. Same-store sales on the mainland rose by 2 percent.

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  • Vietnam gold price hits 6-year high

    Vietnam gold price hits 6-year high

    Gold prices in Vietnam soared to a six-year high on Monday amid rising military tension between the U.S. and Iran. The country’s largest jewelry company DOJI sold its SJC gold at VND44.44 million ($1,924) per tael (1.2 ounces) on Monday morning, up 3.78 percent from Friday.

    Another giant Phu Nhuan Jewelry also raised its selling price to VND44.3 million ($1,918), up 4.7 percent.

    It is the first time Vietnam’s gold price passed the VND44.4 million ($1,922) mark in the last six years.

    The surge came as global gold prices increased by up to 1.8 percent to $1,579 per ounce at a point on Monday morning, the highest in seven years.

    The sudden rush for safe-haven assets came after U.S. President Donald Trump ordered a strike that killed Iran’s General Qasem Soleimani, head of the Iranian Revolutionary Guard’s elite Quds Force, on Friday. Iran has vowed to retaliate.

    Gold prices had been surging throughout last year as trade tensions between the U.S. and China persisted.

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  • Lancome launches Absolue Gold Power pop-up at Sanya

    Lancome launches Absolue Gold Power pop-up at Sanya

    Luxury beauty brand Lancome has launched a pop-up store at the Sanya International Duty Free Shopping Complex in Hainan, China.

    Following earlier VIP events in Beijing and Seoul, the Gold Power pop-up, which also marked the first Lancome x CDFG collaboration with the brand’s premium Absolue franchise, extended a luxurious experience to Sanya travellers while promoting Lancome’s French rose-infused Rejuvenated Absolue Soft Cream.

    The pop-up featured an outdoor installation of more than 5000 pink roses surrounding a larger-than-life Lancome Absolue gold jar. In store a 3D digital screen invited travellers to immerse themselves in the brand’s soft cream texture story and browse an assortment of skincare products and travel-exclusive offerings, with personalised skincare consultations.

    “Travelling consumers nowadays are looking for iconic products, desirable brands and memorable experiences,” said L’Oreal Travel Retail Asia Pacific MD Emmanuel Goulin. “This is precisely what we try to achieve with this first-ever Lancome Absolue pop-up in Haitang Bay created in partnership with China Duty Free Group. As such, I am confident that the Absolue range will continue to write the future of Lancome skincare, and become the perfect new cream to win in the highly competitive and strategic premium skincare market.”

    Prominent celebrities and KOLs were invited for special appearances at the pop-up, including Lancome’s brand ambassador, renowned actress Yu Fei Hong.