A tical of 24 karat gold (one tical equals 0.576 ounces) sold on December 4 for about K653,500 (equivalent to about US$1228 an ounce), the lowest since 2009, said U Win Myint, secretary of the Myanmar Gold Entrepreneurs’ Association (MGEA).
The decline has been evident since March, when a tical still cost K768,500, down from gold’s August 2012 high of K793,500.
“This is normally the peak season for gold sales, because farmers have money after the harvest. But there is a lack of interest,” he said, adding that price would continue to fall due to the commodity’s poor performance on the international market.
With steady decreases in the market over the past 9 months, he said that investors have turned to the property market and the US dollar.
U Win Myint said he expected that gold prices would bottom out sometime in the range K650,000 - K655,000.
Gold trading tends to take place in the cities and not the borders as tical prices than are about K10,000 lower than in Yangon and Mandalay, he said.
“Since prices have been falling continuously since April, people just want to sell out,” said Daw Zin Mi Mi Aung, owner of Aung Thamadi gold shop in Mandalay, adding that her shop has ceased to be profitable.
Daw Ei Ei Khaing, owner of Shwe Nan Daw gold shop in Yangon’s Lanmadaw Township, said she has had better luck as demand had remained steady, from both retail and wholesale customers, who successfully negotiate prices.
“We don’t keep stockpiles for a long time. Our products sell out within days, so we haven’t lost out so far,” she said.
source: The Myanmar Times
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