Friday, 2nd December 2005 (2691 views)

British industrial giant BAE Systems has emerged as one of the South African gold jewellery industry's unlikely saviours.

Battling against spiralling costs and high risks, South African jewellers have had it rough of late.

In a bid to make local jewellers more competitive in the export market, BAE is taking part in the newly-launched 'Gold Advance Scheme'.

The scheme will see BAE Systems, together with several other firms, put up two-thirds of the collateral on South African jewellers' gold purchasers.

This will make it easier for them to obtain gold at a fair price.

The scheme also permits jewellery firms to sidestep the high levels of interest they would normally be charged on advanced gold by paying international gold-advance market rates.

Only the largest jewellers would initially benefit because only they have the ability to produce the large quantities export markets require. But it is hoped these bigger firms will include smaller producers in their supply chains.

BAE is currently involved in three other schemes designed to boost the South African beneficiation industry.

South Africa produces 14 per cent of the world's gold but only four per cent of the yellow metal is beneficiated in the country.

 

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