YLG to offer gold products to Lao investors
YLG Bullion & Futures next year will unveil its gold products to Lao investors, on anticipation that continued price volatility will increase their attractiveness.
Believing that gold could hit US$2,000-$2,100 (around Bt61,000-Bt64,000) per ounce late this year, or about Bt28,000-Bt30,000 per baht weight, YLG expects physical gold bar and gold futures to attract more buyers and sellers.
Both products will be offered to investors in Laos early next year, starting with gold shops, said Tipa nawawattanasub, chief executive officer of the company.
"Our target is to be No1 in Southeast Asia in terms of trading in gold bar and gold futures within the next three to five years. Laos will be the first country we will penetrate. We are also studying the regulatory environments of other countries," she said yesterday.
YLG's gold-bar trading in the first eight months of the year reached Bt250 billion, representing 83 per cent of the full-year target of Bt300 billion. The number of new clients tripled to more than 1,000, thanks to price volatility.
On gold futures, YLG executed 393,450 contracts during the period, up 15 per cent from last year.
The company recently revised up its 2011 growth target to 20 per cent, with its market share expected to reach 15 per cent, from 8 per cent at present, thanks to the sharp increase in the number of clients, Tipa said.
YLG late this year will also allow investors to trade gold bar 24 hours online, she added.
"We continue to pursue aggressive policies to maintain our client base and market share amid fierce competition. We have resorted to all strategies, including training sessions for potential investors and hiring professionals to help our branding strategy. This will strengthen the organisation and prepare for greater competition next year," said Pawan Nawawattanasub, vice chairman of the company.
Pawan expects gold-price volatility to continue, due mainly to the euro-zone debt crisis and central banks' demand for gold. Central banks around the world now hold more than 30,000 tonnes of the precious metal.
After hitting a record high of $1,920 per ounce in August, gold prices are now in a correction period. The price will drop by $100-$200 a time during this phase, before heading up again. So far this year, the world has witnessed six gold-price spikes, for an accumulated return of 27 per cent, she said.
