CNI News

29 October 2024

After the announcement that trade of gold is that of an important commodity, planning to designate the reference price could grow the black market, pointed out gold market analysts.

After designating gold as an important commodity, restricting, forbidding, supervising the gold market and price might be conducted. 

Moreover, gold traders and entrepreneurs could be taken action against and arrested. However, it wouldn't be effective, Ko Nay Khant, a gold market analyst, told CNI News.

While seeing a bar of Academy gold

" Gold was designated as an important commodity in the past as well. But this time, a committee has become an extra. It is the committee on designating price of gold. Another organization has arisen besides the Yangon Gold Entrepreneurs Association (YGEA). In the past whey they designated gold as an important commodity, gold entrepreneurs were inspected and arrested for a short time. This time as well, they'll seem to do so. For the time being, shop owners and traders are all quiet. They will be quiet for a couple of weeks. It won't be effective. The black market could be bigger." he said.

The committee on designating reference price of metal (gold) is holding online after which the approved reference price will be issued.

Although the government was controlling and restricting the prices of gold and dollar to make the prices of foodstuffs fall, the commodity price didn't fall and it could cure the inflation just in the short term, a businessman told CNI News.

While seeing a gold shop

" Gold must not be controlled but commodity mainly. The government controls money and gold only, but it doesn't impact on the commodity price. It's mainly necessary to impact on the foodstuffs. If not so, there's no point. If the prices of gold and dollar go up, prices of other things rise as well, but even though the prices of gold and dollar fell, the prices of other things didn't fall. But it just could reduce the inflation for a while." he said.

There is not a situation in which gold and dollar markets cannot be controlled because of conflicts taking place within the country; while controlling the gold and dollar markets, scarcity of commodity and higher prices are taking place. 

Moreover, the current price of pure gold is 65 lakh kyats per tical and it is less likely to fall down less than 60 lakh kyats, pointed out gold market analysts.