Gold price stabilises after recent slide
Gold price stabilises after recent slide
The gold price in Laos has stabilished after recent fluctuations on the global market.
The gold price yesterday returned to 4.9 million kip per 15 grams (baht weight) after having recently fallen to about 4.7 million kip according to Phouvong Jewellery shop in Vientiane.
Variations in the US economy caused the global gold price to fluctuate, shop owner and Jewellery Association President, Mr Phouvong Phamisith told Vientiane Times yesterday.
The value of gold was high on the world market when demand for the commodity increased but decreased when people used their money for other investments, he said.
India and China were also significant markets and buyers in these two countries also had an effect on global price fluctuations, said Mr Phouvong.
He believed the gold price would remain stable around its current level for the rest of this year.
“The gold price is currently suitable for people seeking to invest and wanting to keep it for profit later on when the price peaks,” he advised.
He said that normally during this season, the gold price increased but this year it had stayed relatively stable.
The gold price in Laos increased to almost six million kip per 15 grams last year but this year has remained around 4.9 million kip.
However, a Lao economic expert said the decreased price of gold may have a direct impact on traders' profits and their tax contributions to the government budget.
“But we cannot estimate accurately how much of an impact this will have because we don't know exactly how much money the Lao gold traders have received in revenue from selling their goods in a month or year, and how much they contribute into the government budget, said Lao National Economic Research Institute Dire ctor General, Dr Leeber Leebouapao.
The good news of a decreased gold price was that it helped lower inflation and the prices of other goods as it was a traded commodity producing income for socio-economic development, he said.
The gold price on the world market yesterday was about US$1,188 per ounce or 18,500 baht per 15 grams in Thailand.
vientiane times
