BUYING gold in bulk hikes up the price in domestic market, said U Myo Myint, chairman of Yangon Region Gold Entrepreneurs Association (YGEA) at the annual dinner held on 8 January at Western Park Ruby Restaurant in the People’s Park in Yangon.
The Central Bank of Myanmar sold 20 to 30 million dollars every week to steer the local currency value. Consequently, the prices of gold slide. Simultaneously, the association makes effort to meet the demand of gold raw materials in the market.
The buyers offer highly competitive prices. For instance, someone gave K1.8 million per tical (0.578 ounce, or 0.016 kilogram), and another one offered higher price. The sellers are rarely found at the present time, U Myo Myint explained.
Additionally, some goldsmiths made verbal transactions over calls without having any physical stocks. YGEA called for the members to make gold transaction with only immediate payment and avoid that kind of verbal transactions.
In a bid to control the price fluctuation, the member shops Aung Thamadi, Zwe Htet, Shwe Sin Academy and Ayar U Soe Naing sold 20 viss (5 viss each) per day.
They sell the gold to other traders and members. YGEA announced that about 50 viss (a viss equals to 1.6 kg) can be daily traded to deal with market volatility when gold price reached a peak of K2.2 million per tical. As a result of this, the price has fallen. The association ensures the inventory control to stabilize the price and govern price manipulation. Then, the prices returned to normal, U Myo Myint elaborated.
The prices of precious yellow metal stand at K1,820,000 per tical at the moment. The demand on safe asset is growing.
“I found the gold shops along Maha Bandoola Road were unexpectedly packed with buyers as if it offered for free,” Daw Yee Khin, a resident in Kyauktada Township surprisingly stated.
As per YGEA’s data, gold price was closed at K1,821,500 per tical on 31 December 2021. On 7 January 2022, the prices moved in the range of K1,822,700-K1,824,500 per tical.
—Ko Naing/GNLM
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