Gold producers see lower sales in 2011

TN News

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Vietnamese gold bar producers said they have set lower targets for bullion sales this year, claiming that an expected hike in prices could put off many investors.

Nguyen Thanh Long, general director of SJC, the country's largest gold trader, said his company posted around VND372 billion in gold bar sales last year, a 13 percent increase from 2009. However, SJC is predicting lower sales in the coming year.

The company expects to sell around VND350 billion in 2011.

Long said the precious metal is expected to rise 15 percent in value this year.

As economies around the world begin to recover, many investors plan to switch to other investment channels instead of buying gold, he said.

SJC plans to increase its investment in jewelry production, Long said.

Gold prices in Vietnam increased by nearly 35 percent over the course of 2010. The metal hit its one month high on Wednesday, reaching VND36 million per 1.2-ounce tael.

Other gold companies, including PNJ and Sacombank-SBJ, said they will also on focus on jewelry products this year.

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