The Rangoon Division Gold Entrepreneurs’ Association claims that importing gold is as tough as it sounds, according to gold miners.
Five issues were agreed upon at a meeting of the Yangon Region Gold Entrepreneurs’ Association on May 5, including the need to import gold and the central bank’s sale of gold to avoid a market shortage of raw materials.
However, one gold miner claims that it is as difficult as it appears.
“I believe it is as simple as it appears,” he remarked. Where do you acquire the funds to import gold, after all? Isn’t everyone getting enough money even in this situation? As a result, the government’s ability to print dollars is limited. Buying from outside is far worse. It’s therefore simple to say no. And there hasn’t been a situation in the last 30 years or so where gold has been imported owing to domestic demand. One does exist. The heights occasionally flood with gold. This means that if the local gold price is higher than the global gold price, it will be imported for a variety of reasons.
Similarly, they go abroad for various reasons when the local gold price is low and the global gold price is low. “However, because there isn’t much of a difference between the local gold price and the worldwide gold price right now, going here and getting there is challenging.”
“If you import gold from outside, you can enter Myanmar as well as Hong Kong and Shanghai,” stated another gold broker. Their gold is 99.99 pure and accepted on the international market, therefore it can be used domestically. But one thing is certain: shipping expenses will almost certainly be greater than the current pricing.” As a result, importing from other countries is impossible.”
The price of a local academy gold kyat is 2,026,700 lakh kyats, and the world gold price is US $ 1,901 per ounce, according to a statement made by the Yangon Region Gold Entrepreneurs’ Association on May 5 at 10 a.m.
However, Academy Gold (light bulb) is cheap and there is minimal trading in the Yangon Gold Market.
On May 5, the Yangon Gold Entrepreneurs Association (YGEA) raised the price of gold above 2 million kyats.
On May 4, the club’s gold price was 1,989,300 kyats, but it has since been raised to 2,026,700 kyats. The fixed price was roughly 40,000 kyats throughout a day.
At a meeting on May 4, the organization stated that gold retailers and dealers would add YGEA’s goal price of 5,000 kyat to their prices and trade with the revenues.
Furthermore, there is a scarcity of raw gold on the market for import. The meeting also determined to work with regional and state trade associations on cross-border trade issues, such as selling gold to the central bank and contacting gold mining license holders.
On April 3, the Central Bank of Myanmar (CBM) fixed the dollar exchange rate at 1,853 kyat, and the government is attempting to launch the local gold market at that rate.
Such limits on domestic gold pricing, according to market observers, could lead to the establishment of a gold black market.
Because there is such a large difference between the fixed and market prices in the genuine gold market, the gold nugget market has nearly ceased to exist, and gold jewelry is mostly transacted in outside gold shops.