CNI News
18 May 2024
The Ministry of Natural Resources and Environmental Conservation is drafting a law to designate gold trading as an important service industry, according to the Yangon Region Gold Entrepreneurs Association (YGEA).
In order to take action against rising domestic gold price and selling gold at incorrect prices, the government carried out to restore the gold market by designating gold trading as an important service industry, U Myo Myint, chairman of the YGEA, told CNI News.
" The law is being drafted. The law is coming out soon to designate gold trading as an important service industry. Brokers who work by phone or digital platform will be taken action against. Some gold shops sell gold at an incorrect prices. The law will applies penalties such as prison terms. If the has been approved, gold shops must comply with the law. The Ministry of Natural Resources and Environmental Conservation is drafting the law. Punishment will seemingly be added to existing instructions."
If the law came out, speculation of gold prices and gold price volatility would die out and gold speculators would be taken action against under the law, said gold entrepreneurs.
Because the authorities have controlled gold shops and gold entrepreneurs regarding gold trading for various reasons, gold shops are selling gold at a different price on voucher reportedly. Moreover, some people are selling illegally and there are also cross-border Illegal exports of gold.
The law may impact on gold contraband trades or gold black market for a while, Ko Nay Khant, a gold market analyst, told CNI News.
" There will be impact because the government will impose a law. But in my opinion, I think the negative effect is more because a thing that should not be controlled will be controlled. It is useful for a while. It won't be convenient in the long run. Mainly, it can affect the black market. Gold trading can stop in cities for a moment. But later trading will be conducted again." he said.
Domestic gold prices hit record highs and pure gold is over 490,000 kyats per tical.
According to the current domestic situation, officials are not in a position to put pressure on the gold market, pointed out gold market analysts and entrepreneurs.
