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Lao gold jewellery prices surge
The price of gold jewellery has surged over the past month as the value of the precious metal continues to rise in world markets.
Retailers at Talat Sao Shopping Mall, one of the largest jewellery shopping centres in Vientiane, are selling gold at around 6.5 million per one baht weight (15 g) - about a 4 percent increase compared to last month because of gold's higher value. The price of gold in January was about 5.5 million kip.
Gold prices in the world market are about US$1,653 per ounce, an increase from about US$1,300 earlier this year. The rising price of gold is a result of investors' lack of confidence in the US dollar after the American government adjusted its debt ceiling, which may result in a devaluing of the currency.
The purchase price of gold in Thailand was 23,012.88 baht per one baht-weight on Friday while the selling price for a gold bar was 23,350 Thai baht.
Selling prices were set at 23,850 baht per baht-weight for gold jewellery, and 23,450 baht per baht-weight for gold bars.
A number of governments, businesses and individuals around the world have been rushing to invest in gold instead of the US dollar over the past few weeks as a way to secure their investments and savings.
Lao Gem and Jewellery Traders Association President Mr Phouvong Phamisith said on Friday that the gold jewellery trade in Laos was quite flat as the price of gold increased, adding that many Lao people did not want to buy gold because it was unaffordable.
He also said that many Lao people who had gold did not want to sell it because they consider the jewellery to be part of their savings.
Because most Lao people do not think of buying and selling gold as a business, the number of people purchasing jewellery has not increased at the same rate as it has in foreign countries.
Mr Phouvong predicted that the price of gold in Laos would continue to increase in line with prices on the world market, adding that all of the gold traded in Laos was imported from other countries despite Laos having two gold mines.
“The price of gold is higher in Laos than in foreign countries because of the cost of transportation. The Gold Traders' Association has approached the Sepon mine to purchase gold but received an unsatisfactory answer from the mining company.”
“We want to buy gold from Sepon at international prices but we hope to save a lot of money because of the lower cost of transportation,” he said.
Sepon mine officials said that the company decided not to sell to Lao traders because there is no good gold refining facility in the country, adding that the use of low quality refining machines can result in the loss of gold.
vientiane times
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