Gold to be imported for preventing seasonal raw gold shortages
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Khit / Phoo Pyae (NP News) - May 6
Yangon gold market plans to import raw gold to prevent raw gold shortage within the country; the plan is made in accordance with the gold productivity from the gold mines, chairman of Yangon Region Gold Entrepreneurs Association (YGEA) Myo Myint told the NP News.
Yangon gold traders and the YGEA met on May 3 to discuss: importing the raw gold; having the gold shop and gold traders added 5,000 MMK to the gold price set by the YGEA in the market; proposing to sell the gold by the Central Bank; purchasing from the gold mining license-holders and preventing the cross-border trade cooperating with associations from states/regions.
The chair of the YGEA Myo Myint said: “It isn’t yet a gold shortage. The plan to import raw gold isn’t for the current situation. Gold mines are full of water and damaged in the rainy season – June, July, and August. Currently, the raw material supply is enough in Yangon. The plan is expected for the next three months.”
75 percent of total trading in the gold market is purchased by the people who want to collect and save the gold as rumours arose after Thingyan (Water Festival) was finished about fuel shortage and recent rumours that 20,000 Kyat banknote will be released. Only 25 percent is circulated in the hands of gold traders. Therefore, gold will be imported from seven Asean countries with which Myanmar made the free-trade agreement and Japan and India.
“Myanmar made a free-trade agreement with seven Asean countries, Japan and India; and the gold import will be done mainly from those countries. Tariff is free when gold is imported. Myanmar only exported before; especially to Korea and Japan. We are just exploring the gold market by connecting the international gold market and Myanmar’s gold market,” Myo Myint said.
Myanmar is obliged to pay a one percent tax on the export of a gold crafted item whereas purchasing gold from foreign countries can be done unlimited amount, according to the chairman of the YGEA.
Local gold price is declining currently. One viss for 24 K gold was 1,989,300 MMK (1075 USD) as per the YGEA’s gold price on May 4 morning. The global gold price was 1865 USD for one ounce. Global gold price is declining too.
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