News Column

Ausiris will tap second-half gold boom

July 8, 2014

By Nuntawun Polkuamdee, Bangkok Post, Thailand

July 08--Gold prices are likely to claw back to US$1,450 an ounce in the second half due to jewellery and investment demand in Asia and geopolitical tensions in Ukraine and Iraq, says a high-ranking executive at Ausiris.

Chief commercial officer Tanasin Gleeblumjeak said the US Federal Reserve's hint that it would stand pat on its interest rate until next year and that the monthly bond-buying programme would take time to wind down should bolster the precious metal's price.

"We also see higher demand in gold exchange-traded funds and gold futures in the second half of this year after a selling spree in the first half. This is another positive for gold trading," he said. "But choppy trade is expected throughout the year."

The precious metal retreated 28% last year, ending a 12-year bull run, to $1,202.30 an ounce in futures in New York due largely to the US central bank's pullback of its asset purchasing following a string of improving economic data.

Gold rose to $1,332.33 last Tuesday, the highest price since March 24.

Ausiris chief executive Boonlert Siripatvanich said gold trading had dropped by 30-50% from earlier this year due to the sagging global price.

The subdued trade extended into gold futures on the Thai Futures Exchange (TFEX), down by 50% year-on-year. Gold futures trading stood at 9,000 contracts per day last year, and now 4,500 contracts are traded a day.

Ausiris, one of the TFEX's 40 members, commands a 4-5% market share for gold futures trading.

With the drop in trade of gold futures, Ausiris has expanded its brokerage to SET50 index futures and single stock futures, as both businesses contributed 30% of its trading volume last year before surging to 50% in the first half of this year.

Despite the anaemic turnover in gold papers, investment demand for physical gold apparently increased last month, Mr Boonlert said.

Ausiris launched its new flagship store yesterday in the United Center Building on Silom Road to facilitate gold investment. The company offers several types of gold products such as gold coins, gold bars and a gold savings programme.

It plans to use its business partners to promote Ausiris brand awareness nationwide through online media and websites.

"We also need to increase the number of gold investors on TFEX, so we've established the Ausiris Futures Club for education and investment training. Our trading accounts are projected to rise by 10-15% this year from 3,000," Mr Boonlert added.


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Source: Bangkok Post (Thailand)

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