CNI News

13 Feb 2023

Yangon Region Gold Entrepreneurs Association has been preparing to resume gold jewelry to Japan and gold merchants from Japan have proposed to buy gold jewelry from Myanmar, according to the YRGEA.

Although the association exported gold jewelry to Japan, the jewelry exports have been disrupted by the outbreak of COVID-19. Now, Japanese merchants have proposed to buy gold jewelry from Myanmar and the association is also ready to export the jewlery to Japan. Currently, negotiations are being held between the two sides, Chairman of the YRGEA U Myo Myint told the CNI.

He said, "We had exported gold jewelry to Japan but the exports was disrupted by the pandemic. Now, the other side has proposed to buy the jewelry from us and goldsmiths are ready to export the jewelry to Japan. Currently, we are holding negotiations. They are seeking information about licenses and measures for prevention of COVID-19 because they don't want to be placed under quarantine when they arrive here. When they come, exports of gold jewelry will resume."

Local entrepreneurs have enough raw gold to export jewelry to Japan and it will be beneficial for local goldsmiths and goldsmith shops, he added.

Gold jewelry

Although Myanmar exports only a few items of gold jewelry to Japan, it would contribute to stability of the local gold market, according to a market observer.

He added, "It is beneficial for us to export gold to foreign markets because gold jewelry will not pile up in the local market and gold prices in the local market are likely to fall. Currently, the demand for US dollars has stagnated but the demand for gold has fluctuated. Some speculators are taking advantage of the situation. Some merchants are speculating prices based on some data in the international market. However, such data are not important. However, prices partly depend on people who trade gold on such information."

Finished gold jewelry is exported to Japan.

Myanmar is likely to resume gold jewelry exports to Japan when gold prices drop in the international market while South Korea is interested in establishing gold jewelry CMP businesses in Myanmar but is still closely watching the situation of COVID and trade restrictions, according to the YRGEA.