Bangkok--18 May--Aziam Burson-Marsteller
Classic Gold Futures, or CGF, a gold futures brokerage company, announced its success at the Money Expo 2011, booking over 400 new customers for CGF, double the amount the company initially anticipated. CGF also announced that it was ready for the TFEX’s extended trading hours policy, to 22.30 hrs., as well as the upcoming trading of silver futures and Gold ETF (Gold Exchange Traded Fund: Gold ETF). CGF expects the gold futures market to grow strongly as investors have traded actively and already won the grand prize offered at Money Expo 2011 an “iPhone 4 in a diamond-encrusted golden case,” valued at over 200,000 baht.
Ms. Nuttatee Jutavarakul, Chief Executive Officer of Classic Gold Futures, commented on the company’s success in expanding its client base at the Money Expo 2011, saying that investors have warmly welcomed Classic Gold Futures opening over 400 new accounts. This indicated that there is significant market demand, and that an increasing number of Thai investors were interested in investing in derivative products. Although the price of gold on the world market is still fluctuating and may decline in the short-term, for the long-term, gold is still an asset that helps mitigate risk and is a good alternative investment offering strong yields. Further, an investment in gold futures does not require a large initial capital outlay, and there are ways for savvy investors to make a profit whether the price of gold is on a rising trend or a declining trend. Thus, it attracts investors’ attention.
A favorable atmosphere in gold investment, and intensive marketing activations by CGF, including the promotional offer to win CGF’s grand prizes upon reaching 1,000 contracts, has been drawing in active investors. CGF’s First Prize of an “iPhone4 in a diamond-encrusted golden case” was awarded to a winner in less than two months -- by the end of Money Expo 2011! Investors still have a chance to win the Second Prize of an “iPhone 4 with a golden Case.” Also, for every five traded gold futures contracts, the investor is also eligible to win 200,000 Baht for his/her Spot Gold Trading Account. CGF has extended the promotional period until the end of October 2011.
“For the next step, CGF will comply with the TFEX’s policy of extending trading hours up to 22.30 hrs., with a plan to add more investing alternatives including trading in silver futures starting on June 20, along with becoming a sub-broker for a Gold ETF at the end of this year. CGF is ready to provide a full-range of services on the first day of trading, and will continue to expand our customer base by educating people about investing together with offering a variety of promotions, that go beyond what was offered at the Money Expo 2011,” said Ms. Nuttatee.
The silver futures trading, which will officially begin in June 2011, involves trading futures contracts based on 99.9% pure silver, which is the international standard that is traded globally. The size of the contract is 100 ounces or about 3.1 kilograms valued at about 100,000 baht. The final payment will be completed in cash instead of the delivery of the actual silver, using the London Silver Fixing Price.
The investment in gold through the Gold ETF is aimed to create returns based on the price of gold, which may involve direct investment in gold or investments in other assets involving gold, such as gold futures.
Dr. Suwan Walaisathian, an expert in investing and savings, said at the seminar on “Turning Gold Into Money,” organized by CGF to provide knowledge and understanding about investing in gold, that, “The creation of the Gold ETF is one of the ways to offer investment alternatives which bring about benefits to Thai investors. A Gold ETF in Thailand is expected to involve lower fees for local investors, compared to the fees charged by Gold ETFs abroad. Having the ETF set up locally will decrease the risks of fluctuating exchange rates. Additionally, investors will be able to know the exact prices they are getting on the spot market, without having to wait a day to find out.”
On a weekly basis, gold is expected to fluctuate between US$1,475-US$1,550 per ounce. Prices of gold futures are estimated to be between 21,420 and 22,220 Baht per Baht (weight), based on the demand in the physical market. Positive factors driving the price of gold are based on concerns about inflation, the European debt crisis, the political turmoil in the Middle East and South Africa. Meanwhile, negative factors include the strong USD in the short-term caused by a weakening Euro, and the economic slowdown in key markets such as China, which has reduced the demand for commodities, causing fluctuations in commodity markets.
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