KALADAN NEWS

Dated: September 19, 2004

Gold Shines on International Price:

Price may cross Kyat 2,30,000, a Tical within few Months

Maungdaw, Sept. 19, 04: Gold price continuously rising in local market and the local people fear the price for the first time in the country’s history may cross Kyat 2,30,000 in a Tical (1 Tical = 17.49 gm) within a few months, said a goldsmith from Maungdaw Town. 

Local people attribute the price hike mainly to rising international prices coupled with the rising domestic demand. A Tical of gold now sells at Kyat 2,30,000 which was Kyat 1,80,000 only two weeks ago. The price of gold was only Kyat 1,70,000 per Tical in January 2002. In early 2003, the price crossed Kyat 1,80,000 and late 2003 it suppressed Kyat 2,90,000, he further said.

The trend shows by Kyat 10,000 each year. And if such trend continues, it may break all records hitting Kyat 2,30,000 within a few months,” said a manufacturer of jewelry.

He also said, international price-hike and growing local demands, which are major reasons for the rise in gold prices. Another reason is, some government servants at the end of every month buy gold for saving who are able to afford. Traders or businessmen also buy gold for gifts to their bosses. The price was only 230 per ounce in early 2001, but after the September 11 attack on the US, it started rising. In April 2002, the price moved to US$ 312 in international market. The price now hovers between $ 440 and $ 410.

The market has also been witnessing gold crisis since the 9/11 incident as many countries especially Gulf States have restored to gold reserves instead of US dollars, he further said.

Besides, after floating of currency and strict Bangladesh Bank rules in foreign currency dealing US dollar has become scarce in market, resulting in high dependency on gold as a mode of informal trade payment. Arakan is also depends on Bangladeshi gold. So, the price of gold in Burma is also rising in Arakan State, another jewelry shopkeeper said.

Sources said, Bangladesh has about $ 2 billion informal trade with India and most of the payments are now being made through gold instead of US Dollars due to scarcity of dollar in market. Fluctuation of dollars value also affects gold price in local market.

He also said, “The rising prices cannot dampen demand. We are seeing good business despite increase in gold price. Adding that the price may cross Kyat 2,30,00 mark early next year.”

For further information, please contact at:

Mobile: +880-11 227 138

E-mail: [email protected]

Website: www.kaladanpress.org