Lower gold price spurs buyers
Lower gold price spurs buyers
The price of gold jewellery in Vientiane has fallen over the past week spurring buyers look to secure a bargain while prices are low.
The gold price dropped to 5,069,000 kip per baht weight (15 gram) on September 17 and continued to fall again to 5,029,000 kip on September 18 and 5,019,000 kip on September 19.
Over the period from September 20-22, the gold price at some shops had even dipped lower than 5 million kip (4,989,000 kip) per baht weight from September 20-22.
Owner of one of the largest jewellery shops in Vientiane, Mr Phouvong Phamisith, told Vientiane Times that as the price of gold on the world market has dropped sharply, the price of gold in Laos should tend to drop in accordance with the market.
“This would be a good thing for people who want to buy gold as an asset,” Mr Phouvong said.
The falling gold price saw local shopping malls busy with people wanting to buy gold jewellery at a bargain price, Mr Phouvong added.
Gold peaked on world markets at a high three years ago of US$1,775.60 per ounce in September 2012 (New York Spot Price) and closed at US$1223.16 yesterday.
The reasons given by Forbes market analysts for the recent decline in gold prices on the world market during the month of September included the improving economic outlook in America, which saw a rise in the Manufacturing Purchasing Managers Index (PMI) to over 50 consistently.
Other factors were the strengthening US Dollar, an expected rise in interest rates triggering a shift away from gold and also an easing of tensions in Ukraine, which has allayed investor fears of political crisis in Eastern Europe.
vientiane times
