CNI News
30 Sept 2022
The auctioning of three visses of gold bullions and solid gold in Yangon and Mandalay respectively will not have any impact on the market, according to gold marker observers and entrepreneurs.
Authorities announced that the Ministry of Natural Resources and Environmental Conservation would sell three visses of gold bullion and solid gold through the competitive bidding tender system in Yangon and Mandalay respectively at 1 pm on 29th September.
Gold prices will fall if the government can supply enough gold to meet the demand and the current gold sales were too little to have an impact on the market, Secretary U Ohn Myint of Myanmar Gold Entrepreneurs Association told the CNI.
The announcement of SAC to sell gold.
He said, “Authorities announced that three visses of gold would be sold at the Gems Museum on Kabar Aye Pagoda Road in Yangon and at the corner of 26th street and 66th road in Mandalay respectively. It doesn’t mean that they will sell three visses of gold to anyone. They will sell three vissess of gold for each city. If the government can sell enough gold to meet the demand, gold prices will drop. The current gold sales of the government are too little to have an impact on the market.
The SAC has targeted to drag down gold prices to about MMK 2.5 million per tical and sold gold coins recently. Then, it sold gold bullions and solid gold on 29th September.
As local gold prices are calculated based on world gold prices and exchange rates, will gold prices decrease only when US dollar prices fall, according to gold entrepreneurs.
Last year, gold prices hit MMK 2.3 million per tical and fell back to MMK 2 million per tical. This year, gold price skyrocketed to MMK 3.8 million per tical and dropped back to MMK 2.6 million per tical recently. Gold prices would be stable at the current levels, said a gold market observer.
A goldsmith shop in Yangon.
He told the CNI, “Last year, gold prices set a new record of MMK 3.33 million per tical. Then, the prices became stable at about MMK 2 million per tical. This year, gold prices set another new record of nearly MMK 3.8 million per tical, breaching their price ceilings. So, the prices fell back drastically by MMK 1 million to about MMK 2.5 or 2.6 million per tical. As the record gold prices last year were around MMK 2.335 million per tical, this year’s gold prices will be stable at MMK 2.5 or 2.6 million per tical if there are no significant factors affecting the market. Measures being taken by the government will not have impacts on the market. However, if the prices of US dollars nosedive, the trend may be different.”
As the gold bullions and solid gold sold in Yangon and Mandalay would be sold through the competitive bidding tender system, the highest bidder will have the chance to purchase them.
The SAC announced that it would sell gold coins as usual.
