"UkrGasBank" in mass media: Oleg Matling only for "Economicheskije izvestija"
The gold cost increased on 40% from the beginning of the year. Thus as a result of Irani nuclear programs and energy costs instability, the prices of gold ingots keep growing even now. According to experts the price of gold will turn USD 800 at the beginning of second half of the year.
The essence of gold as of financial asset is stable at all times – it is a still harbor. When troubles come, people fall in gold ingots. Factors that affect prices of gold on world markets, pushing them up, reasonably understandable – it is American dollar instability, oil price increase and increase and crisis around nuclear program of Iran – one of first-rate oil suppliers in the world.
“If energy cost increase begins, prices for other products also increase after a while as they are made and delivered to customer with more expensive energy carriers” – Oleg Matling, Head of Precious Metals Division of UkrGasBank, explains the situation.
“Exactly from this inflation protect itself investors when buying gold ingots. After all practice shows that for 1 gram of gold, so to say, one can buy the same number of products that before and after a regularly inflation wave.”
Volume of gold is limited in the world, but volume of investors grows constantly. At that, volume of gold mining is stable during last years. From this follows constant increase of demand under supply.
At first glance, price situation in Ukraine reflects world tendencies in a full manner. Nevertheless, it has its own noteworthy distinctions. Ukraine doesn’t produce its own gold, we buy it on foreign markets, as a result price for gold raise by 2-3%. At that, a paradoxical situation exists – current price for gold in Ukraine is lower than a world one. The fact that gold come into our country in a few days after contract conclusion, i.e. at old price, explains the situation. Therefore, at ascending trend banks are permitted to dumping and attract buyer with relative law price. However, specificity of gold business in Ukraine consists also in the fact that the lion’s share of the metal gets into jewellers’ furnace. According to specialists’ appraisals volume of tender of investment gold doesn’t exceed 15% of all deliveries in the country. But not only because of conservative investors who like gold.
Bank’s have not yet created infrastructure of gold market, held regular exchange tender of precious metals. Average daily turnover of gold in all Ukrainian banks comprises more than 50 kilograms. Thus, there is no place for or less large-scale investors operate on home market. Sell of 100-150 kilograms at fair price at once is not so easy task sometimes. Currently large volumes of gold can be sold only on international market.
“There is no doubt, that for large-scale investors in present conditions it is advantageous to invest in cashless metal which doesn’t leave international trade centers and therefore possesses more liquidity than gold ingots imported in Ukraine. Though, it is necessary to notice that in case of serious crisis, owner of “cash” gold holding ingots with their hands feel more calmly. In course of year I’m expecting for further increase in prices for precious metals. Currently we take a great interest in work with metal, but we’ll redirect towards trade with cashless gold in the end of the year” – Oleg Matling said.
18.05.2006