Gold Buyer Guldbrev to List on Stockholm Stock Exchange Amid Criticism

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Gold Buyer Guldbrev to List on Stockholm Stock Exchange Amid Criticism
Photo: Lars Pehrson / SvD / TT

Gold certificates will be listed on the Stockholm Stock Exchange. The company, which buys gold, has been questioned for its marketing methods. - We have taken note of the process, says CEO Robert Nyberg.

The price per share will be 20 kronor when the listing is planned to take place on the Stockholm Stock Exchange on October 14. This gives a market value of the company of 420 million kronor, according to a press release from the company.

Guldbrev has existed for 15 years and is a company that buys used consumer gold, mainly by customers sending in their gold by post.

Plenty of competitors

But there is no lack of competitors.

Both physical pawn shops and gold dealers and other online players, says Robert Nyberg.

Don't I get better paid if I go to a physical gold dealer?

It's not certain. There are many gold dealers with different business models and pricing models, those who compete a lot on price, those who compete on trust and simplicity.

The gold price is currently sniffing at record levels. This, of course, increases the interest in maybe rummaging through the dresser and selling one's gold, and thus gives an extra boost to the company's business.

Received much criticism

But no world market price is paid by Guldbrev, of course:

No, it's not an actor in our industry who pays, says Robert Nyberg.

How can you then know if the price is the right one? It's possible to compare with other players.

We are transparent with our prices. They are always on the website, he says.

But that's not always what the customers think. Guldbrev was sued last year by the Consumer Ombudsman (KO) for misleading marketing, but was acquitted after several rounds in court.

We were found right in court. But at the same time, we have taken to heart the underlying process, says Nyberg.

More notifications

But the criticism has not blown over. This year, about ten notifications have been received by the KO. But as long as they concern the same complaint of misleading marketing that the court has already taken a stand on, no supervision cases are initiated.

It has been tested in the Patent and Market Court and then the Patent and Market Court of Appeal. Their way of marketing themselves is approved and then some new type of complaint must come in, says Julia Ramberg, who is a lawyer at the Consumer Agency.

The profitability of the company is relatively high. Every fourth revenue krona is pure profit. During the first half of the year, the company had revenues of 180 million kronor with an operating result of approximately 44 million kronor. This gives a profitability, operating margin, of 24.5 percent.

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By TTEnglish edition by Sweden Herald, adapted for our readers

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