SWOT Analysis: Signet Jewelers Experiences 20 Percent Bump in Premarket Trading
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
- In a great example of gold’s Love Trade, a strong U.S. economy empowered consumers to spend their discretionary income on gifts for their loved ones – in particular, gold jewelry. Signet Jewelers, the parent company for Kay Jewelers, experienced a startling 20 percent increase in premarket trading after an unexpected bump in sales. Last quarter, the company reported only a 1.7 percent rise. Tiffany & Co. posted a strong second quarter as well, increasing its global sales by 12 percent. The jeweler announced plans to expand its brick-and-mortar presence in China. This move is well-timed as nationwide gold consumption in China is up 0.3 percent. Gold bar sales in China are down 16 percent, which is completely offset by the gain in jewelry.
- The International Monetary Fund (IMF) approved adding the yuan, China’s currency, into the IMF’s foreign exchange basket. This is the first time the IMF has ever added a new currency to its foreign exchange basket. The IMF’s acceptance opens the door for potentially putting the yuan on par with the U.S. dollar, according to Reuters. Meanwhile, Shandong Gold, a state owned Chinese gold mining company, is preparing to raise $1 billion via a Hong Kong listing.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.