Distributor of gold investment, bullion and collect- able coins the South African Gold Coin Exchange (SAGCE) is focusing on the expansion of its gold coin retail stores, Scoin, in South Africa and globally.

“Since the opening of the first Scoin store ten years ago, they have now grown to 20 stores, with one store in the UK. We are focusing on expanding our footprint in the UK to attract new clients,” says SAGCE executive chairperson Alan Demby.

The company reports that it has invested millions in the expansion strategy with the possibility of opening up two new stores in South Africa by September 2010 and a second store in the UK.

He says that the company significantly invests in its marketing and advertising campaigns to popularise the Scoin stores and its services.

“It is more favourable to open a store in the UK than in other European countries, owing to similarities between South Africa and UK, such as
language and economic and legal systems. However, we are investigating opportunities of opening stores in China, the US and the Far East,” he adds.

Demby explains that it is three times more expensive to open Scoin stores in European countries than in South Africa or the UK owing to the setup costs, operating costs, taxes and the lease agreement costs.

Further, it is also challenging owing to low interest rates, which range between 1% and 2%, compared with South African interest rates, which can range between 8% and 9%, he adds.

Demby notes that the com-pany’s clientele range from ordinary people seeking long-term investments to investment business people.

Meanwhile, the company reports that it reached 100% of its yearly sales target in the first quarter of the year.

“Investing in gold provides long-term investment opportunities. An investment of R10 000 40 years ago will now have accumulated to about R4-million,” he concludes.