Local gold-trading firms set cautious profit targets for gold bars

Local gold-trading firms set quite modest targets of profits for gold bars in 2011 due to volatility of global gold prices and unexpected domestic policies on gold.

Signals of recovery have been lately seen in the U.S. and global economies, which may cause gold traders to switch to some investment channels other than gold, said Nguyen Thanh Long, General Director of SJC, though big gold-trading firms in the world forecasted that global gold prices may surge by 15% this year.

The company, where most of revenues come from gold bars, targets a pretax-profit of VND350billion due to gloomy outlook of gold bar market this year, Son said. The company posted a pretax-profit of VND372billion in 2010, up 13% on year.

SJC plans to standardize quality of gold jewelry and is building a big-scaled factory to produce gold jewelry.

Meanwhile, Nguyen Thi Cuc, Vice General Director of PNJ said the company set slightly higher targets of revenue and pretax-profit this year, reasoning that it will be hard to forecast global gold prices in 2011. – Stoxplus.com

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices

Posted by VBN on Feb 11 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry