Domestic gold prices remain stable despite festivities
Domestic gold prices remain stable despite festivities
Gold prices in Vientiane markets remain stable even though gold buyers are flocking to the markets to buy gold ornaments as gifts in the lead up to Chinese and Vietnamese New Year.
The gold shops are currently bringing large quantities of gold ornaments for sale this month ahead of the Chinese and Vietnamese Lunar New Year, which shall be celebrated from February 19- 23.
This year, many people are thanking their good luck because despite the increased demand the gold price has not increased.
It is currently hovering at a low of 5.2 million kip per 15grams, which is lower than the same period last year.
Chinese and Vietnamese people appear to be quite thrifty most of the time but leading up to their New Year celebrations they are not shy of spending money.
One popular pastime is to purchase gold jewellery for their partners to wear during the celebrations.
However, prices remain low and demand is not as great as in the previous year when currency fluctuations were driving people to buy gold as a form of safe investment.
The owner of Seehorm Meesook Jewelry Shop at Talat Sao Mall in Vientiane, Mr Vilaysack Soulichanh is among those who are a little disappointed with the price of gold.
“I have sold gold for seven years now. This year, the customers are down on last year. Now, I think many Lao people have very much money. They buy gold as gifts for the people in their family but annoyingly the price of gold has not increased.”
“Earlier, whenever the economy was unstable and inflation was high, people trusted only gold as an investment. Now, they are seeking investments in securities and property and feel that simply depositing money in banks could offer them good returns. So this year people won't buy as much gold to join their collection.”
Another jeweler echoed his frustrations, complaining that “The gold price has not increased for the Chinese and Vietnamese Lunar New Year as it did the previous year and demand has not been as heated.”
However although the gold price has not increased gold can still generate a lot of revenue, according to traders.
This is because the gold shops can sell gold in line with the world market and industry insiders attributed the stability in the Lao gold market to the stability in the country's macro-economy and also the success of the Lao Jewellery Trader's Association in managing the gold market.
Local shoppers meanwhile are pleased that gold prices are not too high as they seek to purchase jewellery for their loved ones in the lead up to Chinese and Vietnamese New Year
A local shopper named Mr Vienkeo said “Every year I have bought gold for my children and my wife for the occasion of Chinese and Vietnamese Lunar New Year.
“I used to store gold as a hedge against inflation in the past. However this year I turned to securities as I see them as a more attractive opportunity.”
