Yalınkaya > Corporate >
Dear esteemed partners, employees, customers,
We enjoy the deserved pride of leaving another year of success in the jewelry industry of Turkey, holding the second rank in the world among jewelry exporting countries, which has been rapidly improving and is, by now, running to become the global leader. Investor and speculator interest in gold led to the price reaching a 26-year high of $725 per ounce in May 2006, with an annual average price for 2006 of $604 per ounce, 36% higher than in 2005 and the greatest annual gain since 1980. With the key drivers of the price- the investment and physical market, currencies and interest rates- all continuing to sustain demand, we are confident that gold will continue to trade in its present range, or higher, for the foreseeable future
In this market context, structuring gold and jewelry related companies under its umbrella, Goldart Holding has always been aware of the importance of its steps. Also in the forthcoming periods, we will continue attempting to take even more important steps by the same determination in order to maintain our position as a major player in global precious metal trade and jewelry market.
Enjoying the pride of having our market share in the exportation of Turkish Jewelry Industry, which was realized approximately as 1.2 billion US Dollars, doubled to 10 % in the year 2006, we as being Goldart Holding, believe that 2007 will bring along positive developments both for the industry and for our group companies. In respect of gold importation; we, as Goldart Holding, performed approximately 62 % of the gold importation of total 193 tones in Istanbul Gold Exchange (IAB) in 2006.
Goldart Holding with its Group of Companies continues to carry on its business as usual as one of the most prominent Holding Companies in Turkey on solid grounds without any compromise on its corporate values through its 8 companies and 2 domestic and international participations. As one of our largest companies Goldas Jewelry has primarily determined the target position of its brand, and then has gone to implement the requirements of such target in order to be able to manage the long and stringent process of becoming a brand. Goldas Jewelry, the jewelry manufacturing arm of our group, having the structure of a growth – oriented company, aims at being effectively present especially in abroad markets as well as its location network at home. Goldas stores, which have a different concept, increased the recognition of our brand. Our stores draw attention in Russian and Chinese markets, which are notable for their growth potentials, as well as Turkey. Our Group Company Goldas will continue attaching importance to store business in 2007 as well; planning our stores to serve in the major fashion centers in the world in the forthcoming years.
Goldas Jewelry, being a member of the world's most prestigious entities such as London Bullion Market Association (LBMA), Istanbul Gold Exchange (IAB), International Precious Metal Institute (IPMI) and the Silver Institute, also maintains social responsibility projects, to which attach a huge importance. Among such projects are the books published on ornamental art and culture, Goldas Magazine, which is delivered to thousands of senior businessmen and which publicizes Turkey and the jewelry industry, and Ornamental Design Summer School. On the other hand, Goldas was the first Turkish jewelry company participating to UN Global Compact in 2006, which was a volunteer initiative of Mr. Kofi Annan, the former Secretary General of United Nations. Our company, which continuously increases the number of countries of operation, by its participation to the compact, covenanted to adopt and implement the principles therein through its entire organizational structure
In the field of mining Industry, the name PreGold Mining is currently doing explorations in Turkey, Ghana and Mali in order to be a dominant player in the world gold mining industry. With the help of the modern company network and know-how, Goldas Retail Stores and Marketing provides service to group companies in a solid and strong structure with synergy. Goldas Distribution and Marketing is also one of the subsidiaries of Goldart, is involved in the distribution and marketing of silver jewelry, accessories and gold bars, which are manufactured by Goldas Jewelry. In the field of refinery, Goldoro is in charge of refining gold and similar precious raw metals as well as producing cast. Meydan FX and Precious Metals, on the other hand, proudly as being the only non-finance house member of the Istanbul Gold Exchange, acts as an investment broker of our Group. At last but not least, Goldas DMCC and Goldas HK are the gold and silver trading arms of our Group, being members of the Dubai and Hong Kong Metal Exchanges.
Although 2005 was a year of corporate structural adjustment to keep pace with the changing conditions, we have not wavered for a second from our commitment to our well-defined strategic plans regarding our domestic and international activities. Hereinafter, we will continue our activities to become a global company in terms of our fields.
In respect of 2007, there are certain outstanding risks and opportunities for the world economies. The basic argument here is, as it was for the fluctuations experienced in 2006, the consequences of the USA and Asia equation. The origins of the current imbalance in the global economy are discussed to be the high savings rates in Asia in spite of the continuously increasing current accounts deficit in USA.
On the other hand, the risks that the developing countries, which, in the past, generally experienced severe crises after intensive investment and growth periods, are confronted decrease. The facts that the developing countries can find debts in their own currencies, they maintain their debts at manageable levels, they can save major foreign exchange reserves, improve their financial systems and render the exchange rates to be at realistic levels are the elements, which reduce the risk factors.
We, holding a publicly – held company with a fairly broad sphere of activities, under our umbrella, closely keep track with the developments in Turkey while making efforts to access and analyze any piece of information with news nature due to our operations in international markets.
In our 4th year, relying on the strength of having left an efficient year behind, we are determinant to maintain our position in our core area of business as the leader of the industry, to increase our strength of our markets of presence and to continue our works on creating new and profitable business opportunities.
Looking ahead to the rest of 2007, we continue to have a positive outlook of the gold industry for and price of our product, and confidently anticipate another year of growth and improved value for our group of companies.
Best Regards,
M. Sedat Yalinkaya
Vice Chairman
