Gold sale drops by 75pc as its price shoots up unabatedly******
Saturday, 30 April 2011
Sonia H Moni
The sale of gold has dropped by around 75 per cent as an after-effect of an unabated price-hike of the item in the local market in a span of two months, in tandem with its continuous rise in price in the international market, jewellers said. "The precious metal's price has gone up during March-April this year in the local market almost without a pause. This has resulted in a fall in sales of gold by around 75 per cent," Bangladesh Jewellery Manufacturers and Exporters Association (BJMEA) president Anwar Hossain told the FE. A 'bhori' (11.66 grams) of 22 carat gold sold at Tk 48,405, and that of 21 carat and 18 carat at Tk 46,248 and Tk 41,232 respectively while the traditional gold per 'bhori' sold at Tk 31,493 on April 29. The price of 22 carat gold was Tk 43,332 and 21 carat, at Tk 41,349 and the 18 carat, at Tk 36,858, while that of traditional one was Tk 29,160 per 'bhori' on March 2 this year. All those prices are in terms of per 'bhori' as a unit of transaction. Mr Hossain said, "Now the price of gold is beyond the buying capacity of the middle and lower-middle income people. They are forced to buy gold jewellery only for the wedding ceremonies of their near and dear ones." "The rich people use gold ornaments as luxury items. But this group of people have also started to buy gold ornaments in lesser quantities and of the simple types," he said. rocketing price has forced goldsmiths to change their job pattern. Some of them now work on silver and other metals and some have shifted to a different profession. The BJMEA president said, "Around 40,000 to 50,000 goldsmiths are now involved in gold ornament-making while there was more than 150,000 to 200,00 earlier." "The yearly demand for gold was around 45 tonnes to 50 tonnes in the country before the 911 Twin Towers attack and now it has come down to 10 tonnes to 15 tonnes," he added. Mr Hossain, also the owner of General Jewellers, said, "There were 80 gold jewellery shops which mainly sold gold ornaments, with silver and other metal-made jewellery taking the secondary position, at Mouchak market and Anarkoli market in the city. Now there are only 50 per cent of the gold jewellery shops and the rest mainly sell silver and other metal ornaments. Bangladesh Jewellers Samity (BJS) president, MA Wadud Khan said, "The international price of gold soared to a new high of nearly US$ 1533 on April 28." He said, the price of 22 carat gold was Tk 33,884 a 'bhori' in March last year. The price of gold has increased around Tk 15,000 per 'bhori' compared to that of the same period in the previous year. The price of silver also doubled during the same period. In December last, the traditional gold sold for Tk 27,993, 18 carat at Tk 35,866, 21 carat at Tk 40,240 and 22 carat for Tk 42,165, a 'bhori'. The BJS president said the gold prices are rising continuously due to the ongoing unrest in the Middle Eastern and northern African countries. This apparently has created more 'dependence' on gold than on hard currency, he added. Sources said, the buyers have to pay 1.5 per cent value added tax (VAT) when they purchase any gold ornament.
The sale of gold has dropped by around 75 per cent as an after-effect of an unabated price-hike of the item in the local market in a span of two months, in tandem with its continuous rise in price in the international market, jewellers said. "The precious metal's price has gone up during March-April this year in the local market almost without a pause. This has resulted in a fall in sales of gold by around 75 per cent," Bangladesh Jewellery Manufacturers and Exporters Association (BJMEA) president Anwar Hossain told the FE. A 'bhori' (11.66 grams) of 22 carat gold sold at Tk 48,405, and that of 21 carat and 18 carat at Tk 46,248 and Tk 41,232 respectively while the traditional gold per 'bhori' sold at Tk 31,493 on April 29. The price of 22 carat gold was Tk 43,332 and 21 carat, at Tk 41,349 and the 18 carat, at Tk 36,858, while that of traditional one was Tk 29,160 per 'bhori' on March 2 this year. All those prices are in terms of per 'bhori' as a unit of transaction. Mr Hossain said, "Now the price of gold is beyond the buying capacity of the middle and lower-middle income people. They are forced to buy gold jewellery only for the wedding ceremonies of their near and dear ones." "The rich people use gold ornaments as luxury items. But this group of people have also started to buy gold ornaments in lesser quantities and of the simple types," he said. rocketing price has forced goldsmiths to change their job pattern. Some of them now work on silver and other metals and some have shifted to a different profession. The BJMEA president said, "Around 40,000 to 50,000 goldsmiths are now involved in gold ornament-making while there was more than 150,000 to 200,00 earlier." "The yearly demand for gold was around 45 tonnes to 50 tonnes in the country before the 911 Twin Towers attack and now it has come down to 10 tonnes to 15 tonnes," he added. Mr Hossain, also the owner of General Jewellers, said, "There were 80 gold jewellery shops which mainly sold gold ornaments, with silver and other metal-made jewellery taking the secondary position, at Mouchak market and Anarkoli market in the city. Now there are only 50 per cent of the gold jewellery shops and the rest mainly sell silver and other metal ornaments. Bangladesh Jewellers Samity (BJS) president, MA Wadud Khan said, "The international price of gold soared to a new high of nearly US$ 1533 on April 28." He said, the price of 22 carat gold was Tk 33,884 a 'bhori' in March last year. The price of gold has increased around Tk 15,000 per 'bhori' compared to that of the same period in the previous year. The price of silver also doubled during the same period. In December last, the traditional gold sold for Tk 27,993, 18 carat at Tk 35,866, 21 carat at Tk 40,240 and 22 carat for Tk 42,165, a 'bhori'. The BJS president said the gold prices are rising continuously due to the ongoing unrest in the Middle Eastern and northern African countries. This apparently has created more 'dependence' on gold than on hard currency, he added. Sources said, the buyers have to pay 1.5 per cent value added tax (VAT) when they purchase any gold ornament.