Nguyen Ngoc Trong, sales director of Phu Nhuan Jewelry Company (PNJ), said that now is the high season for jewelry purchase, prompting PNJ to launch new products to meet customer demands. Over the past two months, jewelry sales at PNJ have jumped by 30%.
Trong said that the jewelry market has seen positive improvements compared to the same period last year. Total sales in the last two months are expected to increase 20% year-on-year.
As gold prices have strongly declined in 2013, many consumers have calculated to buy jewelry to wear or to keep as a family heirloom, he added.
In addition, jewelry demands have also picked up during the wedding season at the year-end. PNJ has sold a lot of jewelry sets as wedding presents in recent times.
Meanwhile, Saigon Jewelry Company (SJC) has focused on jewelry production and business since last year. Currently, the enterprise is speeding up advertising for SJC Diagold brand.
Pham Quoc Dung, director of the high-class brand, said that launching the brand amid the high season has helped raise sales of the products.
However, commenting on the jewelry consumption at SJC in the fourth quarter, Dung said that revenue has increased strongly compared to the first half of 2013 but is only equal to the same period of 2012.
However, jewelry sales would keep on rising until the end of the first quarter of 2014 thanks to Lunar New Year, or Tet, Valentine’s Day and International Women’s Day, he said.
Meanwhile, the gold bar market has seen buying power weakening since early this year.
Nguyen Cong Tuong, SJC’s deputy sales director, said that buying power has contracted around 60% this year even though gold prices have tumbled.
As the world economy is expected to recover next year, gold is no longer a safe haven for investors. People are turning their back on gold as they fear further price declines.
Most financial institutions predict gold prices to oscillate between US$1,250 and US$1,300 an ounce in 2014. Gold prices have averaged out at US$1,350 an ounce this year.
Trong of PNJ said that the enterprise has sold 300 to 400 gold taels each day this month compared to last year’s figures from 800 to 1,000 taels.
SJC on Tuesday quoted gold prices at VND35 million and VND35.1 million a tael for buying and selling respectively. Meanwhile, the price of the precious metal dropped US$5 to below US$1,200 an ounce on the New York market overnight.
Local gold prices were around VND4.5 million higher than the world price for a tael. The gap was VND4 million a tael early last week.