Export of gold jewellery to the US has potential to increase

Export of gold jewellery to the US has potential to increase

Gold jewelry (Reuters)

Washington DC, (ANTARA News) - Indonesian entrepreneur who is engaged in jewellery business, Michael Susanto Yahya, expressed his optimism about an increase in gold jewellery exports to the US in the coming years.

"I believe the growth of our gold exports to the US this year could be 50 percent higher than the previous year`s," Yahya said in Washington DC, on Tuesday.

Yahya, who also serves as the general manager of Market Export of PT Untung Bersama Sejahtera (UBS), stated that the product which is most salable in the US is gold necklace.

Gold necklaces, according to him, are in great demand by the Americans, not only women but also men. Even many rappers wear it as accessories to support their performance.

However, Indonesia must be able to compete with other jewellery exporters such as Jordan, Dominican Republic and South Africa.

To do so, Indonesia has several advantages including competitive prices and better shipping services.

Yahya revealed that the export of gold and various gold jewelry to the US could reach around US$200 million per year.

PT UBS, where he serves as one of the general managers, is a private company engaged in the gold jewelry industry since 1981 with initial name of CV Untung in Surabaya.

Since changing its name into PT UBS in 1991, the company has grown rapidly and can now export gold to the US, the Middle East, Hong Kong, Singapore and the European Union.

UBS gold which has a number of jewelry brands can also be found in dozens of gold shops in Indonesia.

As quoted by the Xinhua news agency, gold futures on the COMEX New York Mercantile Exchange division were slightly higher at the end of trading Monday (Tuesday morning WIB), as a result of weaker US dollar and a decline in equities.

The most active gold contract for February delivery increased by 1.80 dollars, or 0.14 percent, to settle at 1,291.30 dollars per ounce.

Gold and the US dollar usually move in opposite directions. When the US dollar goes down, gold futures usually rise, because gold valued in US dollars is cheaper for investors holding other currencies.

Reporting by M. Razi Rahman, Yashinta Difa Pramudyani
Editing by Suharto
 

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