"Gold price is now on a downward trend but moving forward, it will go up. 2012 will still see an upward trend due to demand for gold and we see positive growth in sales.
he said the movement of gold prices would depend on the political stability in Iran, where Poh Kong gets its supply.
"If war starts (in Iran), gold prices may increase by 30%," he said.
Last year, gold hit above US$1,900 per ounce but has since fallen to US$1,620 this month.
Poh Kong's head of corporate affairs, admin and human resource Margaret Hon said demand for gold will remain resilient this year as many investors are moving towards gold bars and bullion as a form of investment.
"Demand for gold globally is still on an upward trend. We're still seeing double-digit growth globally on gold bullion and bars, so there's still potential for us to move forward," she said.
She added that the high price of gold would bring higher margins for Poh Kong as the cost is passed down to retail customers.
"We don't see demand falling, in fact when gold prices are going up, we see investors moving to gold," she said.
On banks offering gold investments, Hon said although there is a bit of competition, Poh Kong's sales are not affected as customers still come back to them.
She added that the majority of the company's business comes from the sale of jewellery, with investors making up less than 10% of its total clientele.
---from the sun
