Mar 31 2009 |
more articles from
|
Fluctuations in prices affect retail gold market
Uncertainty and fluctuations in gold prices have severely hit the retail gold market, which will continue to suffer until prices stabilise, leading gold retailer Joy Allukas told Emirates Business."Price fluctuations are badly affecting us. Our revenue for March 2009 dropped 22 per cent to last year. Sales will continue to be hit until prices stabilise; at any level," Alukkas said.
For 2009, prices should hover between $800 (Dh2,938) to $1,000 a kilogramme, Alukkas said. On industry speculation that the price of gold could rise to even $1,500, Alukkas said: "Commodity experts have their own instrument for measurement. If prices go below $1,000 our volumes will go up. If they go above $1,000 it needs to stabilise at a specific level for at least a few months. This will bring back retail confidence."
The Joyallukas Group , which has averaged 12 outlet launches a year since its inception in 1998, has brought all expansion plans to a halt. "This year is about consolidation. We have committed to five store openings in the UAE, Bahrain, Qatar and India. We will not launch any more stores until this crises turns around and market confidence and spending returns," said Allukas.
The group will also wind up its money exchange arm, which has two outlets in the UAE, and return to its core business - retailing gold and diamond - the chairman said. "The money exchange business has become too cumbersome, and once again there is too much fluctuation and risk. I have to consolidate and return to what we do best - sell gold and diamond jewellery."
Diamond sales would be the way forward for the company, he said. "While sales of gold have dropped over 20 per cent, diamond sales have remained unaffected. It is a steady market."
Zawya Comment Policy
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Copyright © 2012 Zawya Ltd. All rights reserved. |
provided by www.zawya.com |
Post Your Comment