CNI News
6 February 2024
Nitric acid, the main raw material in refining gold, has been in short supply in market and its price is skyrocketing, according to gold entrepreneurs.
Although the price of the acid was about 200,000 kyats for five gallons in the past, but now the price has been about 1,000,000 kyats reportedly.
Because the price of nitric acid has risen, the cost for refining gold has gone up, U Ohn Myaing, secretary of the Myanmar Gold Entrepreneurs Association, told CNI News.
" I heard that the acid has been scarce. The price has been around 10 lakh kyats for five gallons. The price was about two lakh kyats in the past. And the cost for refining gold has gone up exponentially as well. Now the charge for refining gold has been 6,500 kyats per tical. The charge was only 3,500 to 4,000 kyats in the past. In the same way, the price of gold also has gone up from 3,000 to 5,000 kyats per tical." he said.
While seeing gold ware
Due to the shortage of nitric acid, the productivity of gold finished product has declined, said gold entrepreneurs.
The government imports the nitric acid and gold entrepreneurs have to buy it from the companies concerned. At present, importing the nitric acid has been delayed due to difficult border trade routes reportedly.
Nitric acid is mainly imported from China. The productivity of gold has been slow due to the necessity of the acid. So, later the gold shops won't be able to sell the gold as much as the customers want, said the gold market analysts.
However, gold price speculators might find a way to go on doing their business, Ko Nay Khant, a gold market analyst, told CNI News.
While gold is being melted
" The acid has been scarce really. The border trade routes have been interrupted. The acid is not like other products. You can't import it on your own. The government import it. We have to buy it from the government kind of. But the countries like Malaysia have allowed the companies whatever they want to import. If the acid was not available easily, the gold shops won't able to sell gold as much as the customers want. If so, the gold shops will have to re-buy the gold from the customers. If they did so, the gold price might decline but for not very long. And then, they will sell it again. An opportunity has arisen to speculate gold price." he said.
As now is the open season, the influx of raw gold from gold mines has increased and because it is the season when finished gold products are manufactured, the demand of the acid will be high.
However, due to the shortage of the nitric acid in the market, the productivity of finished gold products has declined and the price of gold might be volatile, which gold traders and gold market analysts are worried about.
