Laos: Gold price continues to fall
Laos: Gold price continues to fall
The price of gold jewellery in Laos is continuing to fall, opening up opportunities for those considering buying jewellery as a long term investment.
Yesterday shops in Vientiane's Talatsao Mall were selling items for 6,340,000 kip per baht of gold (15 grammes), down from 6,680,000 kip per baht in the middle of this month. In early January, gold items were selling for 6,880,000 kip per baht.
One of the main reasons behind the steady decline in the price of gold is the drop in price of the precious metal on world markets. Yesterday, gold bars were selling for US$1,583 per ounce, down from US$1,671 per ounce in the middle of this month.
According to the news agency AP, the price of gold bars is falling because investors are selling gold so they can use the money to invest in the stock market now that the global economy is on t he upswing.
Investors believe stock markets can provide them with a more lucrative return in the short term as the global economy picks up.
Economists say most investors will start buying gold again if the global economy starts to slow, as they believe that this rare mineral yields the best investment return and is one of the safest ways to save.
Lao gold traders say that even though Laos is a supplier of gold to world markets, its sale price in the country is never cheap. All of the gold produced in Laos is exported for further processing before being re-imported.
“Gold is not the same as other commodities; it is a global commodity so its price does not depend on domestic circumstances,” one trader said.
Traders say the falling price of gold bars means that now is a good time for Lao people to consider buying gold with a view to long term savings, predicting that the price would remain high over the next several years.
The value of gold rises by at least 10 percent per year, they added, which makes it a sound long term investment.
Gold traders advised against buying gold with a view to short term gains as they believe the metal will continue to fall in value. They suggested that the best time to buy gold for short term gain is when the price is rising, as it can be resold for a higher price within a short timeframe.
They also suggested that traders should keep up with the news and the global economic situation before making any investment decision , adding that investment is always associated with a certain amount of risk.
vientiane times
