Fewer gold buyers despite price drop
Fewer gold buyers despite price drop
The number of gold buyers in Laos is still less than sellers despite the gold price having fallen to its lowest level in five years in the last two weeks.
As the gold price on the global market adjusted down, so the gold price in Laos followed suit according to the Lao Gem an d Jewelry Traders Association.
The gold price in Laos last week dropped to about 4.55 million kip per baht (15 grams), which is its lowest in the last five years, the association President Mr Phouvong Phamisith told Vientiane Times on Friday.
The highest price gold reached was 7million kip per baht in 2012, he said.
He commented that the gold price would be stable at this level for the next few weeks then may inch upwards when the world price improves.
He believed that the gold price in Laos wouldn't go any lower than at present.
However, the number of buyer s at gold shops in Vientiane is less than the number of sellers as most Lao people buy gold as a collection item but not for profit, while many farmers bring gold to sell and leave them with funds to invest in their crops.
They will return to buy it back after they have sold their harvests, said Mr Phouvong.
He advised that for anyone wanting to buy gold for spe cial occasions like weddings, this was a good time for them.
China is a big gold market, where most of people like to buy for their collection a nd if the gold price in China adjusts it will also impact the Lao market.
In 20 09, China had gold reserves of about 1,054 tonnes which has increased to 1,658 tonnes this year.
