Jeweler to launch gold for investment ( 2003-12-15 14:00) (eastday.com)
Shanghai Laofengxiang Co Ltd, the largest and oldest jeweler in the city,
will issue 654.64 kilograms of gold bars and nuggets on Saturday, becoming the
first local jeweler to offer investment-grade gold.
Laofengxiang plans to sell 99.99 percent pure gold bars or nuggets in three
sets to celebrate its 155th anniversary this year. The firm will offer 155
one-kilogram gold nuggets, the heaviest of its new offerings, at six of its 36
outlets in the city from Saturday and booking starts today.
"The investment-grade bullions will not only meet the demand of gold
investors but can be a good alternative as a present or for collection," said
Wang Ensheng, vice general manager of Laofengxiang.
The retail price of the bars will be between 118 yuan (US$14.22) a gram and
125 yuan a gram. The price for 99.99 percent pure gold finished at 108.28 yuan a
gram on the Shanghai Gold Exchange last Friday.
Customers can sell these products back to Laofengxiang when they want to cash
out. But they have to wait three months starting from today before they can do
so.
The buy-back price is dependent on the previous day closing price on the
Shanghai Gold Exchange, the country's sole gold exchange. No commission fee will
be charged.
Laofengxiang is the second firm to issue investment-grade gold in the city,
after China Gold Coin Inc, the country's sole wholesaler of gold bars and coins.
Shanghai Gold Coin Investment Co Ltd, the distributor of China Gold Coin, had
also planned to issue investment-grade gold bars for the coming "Year of the
Monkey" according to the Chinese lunar calendar in Shanghai at the beginning of
this month.
However, the issue was delayed to last weekend. Shanghai Gold Coin said they
will be able to provide less than 40 kilograms of bullions to the local market.
"It is because consumers from north China have almost booked most of the
bars, draining our stocks to provide gold bars to customers in Shanghai," said
Chen Kui, vice general manager of Shanghai Gold Coin.
Shanghai Laomiao Jewelry Co Ltd, another major local jeweler, is also
planning to issue gold bars for the "Year of the Monkey" before the end of the
year, said Zhou Min, a senior executive of Shanghai Laomiao.
In November, the gold price rose above US$400 per troy ounce (106.75 yuan a
gram), the highest in the global market since March 1996.
