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Gold price set to rise over Lunar New Year
The Lao Gem & Jewellery Trader Association expects the price of gold to increase slightly over the Lunar New Year.
The gold price in Laos is currently about 6,785,400 kip per 15g but “this may increase by 26,000 to 52,600 kip over the festive period,” an official from the association said yesterday.
She said that increases in the price of gold were normally between 26,000 and 52,600 kip per 15g at this time of the year.
The price of gold has risen in recent weeks from 6,469,800 kip to 6,496,100 kip per 15g three weeks ago.
“Currently, gold is selling well and some employees at handmade jewellery workshops in Vientiane are working overtime,” she said.
Normally, employees start work at 8am and finish at 4 or 5pm, but some now have to work until 9 or 10pm with overtime pay.
Gold sells well at this time of year because Chinese and Vietnamese people and Lao people of Chinese or Vietnamese descent traditionally buy gold as New Year gifts for family and friends.
She said another reason for the increase in demand for gold is that the current price is less than it was at the end of 2011, when it ranged from 6,838,000 to 7,101,000 kip per 15g.
Once the price goes up at Lunar New Year, it often doesn't go down again until the start of Buddhist Lent in July. “This is often the case at this time of year,” she said.
“The price may go down in the wet season, but not by very much,” she added.
However, it will rise again at the end of Buddhist Lent because this is the traditional time for celebrations, particularly weddings.
Gold price fluctuations are also the consequence of changes on the world market. “Sometimes we have to sell at two different prices in a single day, for example a morning and an afternoon price,” she said.
The Lao Gem & Jewellery Trader Association has 84 members producing both handmade and machine made jewellery for the local market.
vientiane times
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